mar

2012

Marketing issues in Pakistan

Marketing strategy of PIA

Zara asif chattha(091014) Shaban zaib(090924) Tahira sammer(090948) Bba 6th A

Marketing strategy
Market segmentations of PIA: PIA covers all necessary segments 1. Demographic segmentations: Income segmentations Occupation segmentation 2. Geographic segmentations: In this segment PIA focus both on domestic and international 3. Behavioral segmentations Occasion segmentation Hajj Eid New year 4. Psychographic segmentations: Social class: Tourist Targeting strategy of PIA: 1. FROM DEMOGRAPHIC SEGMENTATION: Two categories: I. Income segmentation Upper class Upper middle class II. Occupation segmentation Working class (working as an employee inside and outside the country) Business class (having business) 2. FROM GEOGRAPHIC SEGMENTATION: Here include both domestic and international flights. 3. FROM BEHAVIORL SEGMENTATION: Occasion based targeting audience: i. Hajjs occasion When hajj operations in going all those people flying from different cities of Pakistan to Saudi Arabia for the performance of hajj ii. Eids occasion When eid occasions are near people within the cities and outside the country move to their homes. iii. New Year occasion Now people prefer to have New Year with their family thats why all those people coming back Pakistan from different countries or moving outside Pakistan are targeted over here.

Loyalty status PIA gives different benefits to the fliers but all those who travel a lot get the benefits like discount rates etc. 4. PSYCHOGRAPFIC SEGMENTATION:

iv.

Social class a) Tourist

Marketing mix of Pakistan international airlines: 1. Product: PIA is a service base company, they provide intangible products, and services provided by PIA are intangible. Buyer cannot see the result before the use, the buyer look for the signs and evidences of the service quality. These services produce and use at the same time (inseparability). Services are highly variable. PIA use following strategies to producing a better match between demand and supply:

I. II. III.

Non peak demand can be cultivated Reservation system is one way to manage the demand level Peak time efficiency routines are introduces, employees perform only essential tasks during peak period. 2. Price : PIA HAS TO DEAL WITH PRICING ASPECT IN TWO TYPES OF SITUATION PRICING OF PASSENGERS TICKET PRICING OF CARGO AIRWAYS BILL DOMESTIC ROUTES: Prices for domestic routes are fixed by govt. of Pakistan for PIA , the PIA management estimate the price by using following six steps procedures and sent to the government for final approval: I. Selecting the price objective II. Determining demand III. Estimating costs IV. Analyzing competitors prices and offers V. Selecting a pricing method VI. Selecting the final price INTERNATIONAL ROUTES: The prices for international routes are set by the international air travel association (IATA)

.the IATA does not allow any discount on any international routes. PIA establishes the pricing strategies on different international routes keeping In view the following points: Demand for seats, greater demand tends to no demand Competitors price Cost of operations Type of aircraft used

1. 2. 3. 4.

 PIA has three categories of their pricing I. Higher prices II. Shoulder prices III. Low prices 3. Place : PIA uses two level of channel which is as follow: a) Zero level channels It is also called the direct marketing channel. Now the PIA sells the tickets to final users through its ticket counter. In Lahore, PIA has ticket and booking office to different place to sell the ticket to customer. These offices are computerized and directly linked with the head office at Karachi. b) One level channel Here traveling agents and intermediaries are involved in selling the ticket to customers. Many travel agents are provided auto ticketing and reservation system. There are two types of agents IATA agency and district sales agents. 4. Promotion:

Brochures Umrah made easier PIA offers more flights to Jeddah in May, June and July for umrah PIA budget flight enjoy up to 39% discount on regular fares PIA Introduces budget flight between Karachi, Islamabad and Lahore Discount to students on international; and domestic sectors 25% discount to students on domestic routes 10% discount on international routes is valid only the routes where RM is not implemented Click N fly with PIA web ticketing Secure online credit card transaction Convenient accessibility from home or office

Unique selling proposition (USP)

Services People oriented organization Patriotism Try to be efficient