In the Name of ALLAH the Most Beneficent and Merciful

Marketing Mix of Pakistan International Airlines

Presented By: Khalid Mehmood Rao

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Agenda
Scope of the Presentation The Marketing Mix Suggestions to Improve Questions and Answers

Scope of the Presentation

The presentation is meant to highlight the Airline Industry dynamics and the way PIA is manipulating its Marketing Mix to do business worldwide. It will also be covering the interdependency of the marketing mix components and their individual importance.

The Marketing Mix

To market a service, a marketing mix of 7 different variables has to be designed rather than a usual marketing mix with 4 variables. Hence, the marketing mix in case of airline industry will be a combination of the following interdependent but quite easily be variably controlled factors. Product, Price, Place, Promotion, Physical Evidence, People and Process.

The Marketing Mix

Product Place Marketing Strategy People Physical Evidence
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Price Promotion

Process

The Marketing Mix

1. Product
The core product of PIA is the passenger transportation. Other associated products of the national flag bearer are: Cargo Courier Charters
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The Marketing Mix

2.Price
To meet the demand and to facilitate different segments, the airline has opted two fare classes and occasionally introduce low fare packages also. Business Class Economy Plus Class

Economy Class
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The Marketing Mix

3.Promotion
With a very small presence on the television, the airline has used the print as the main medium of advertisement. Beside Ads, the airline has emphasized more to promote by doing following techniques: Making Brand Ambassadors Offering customer friendly fare packages Making tactical as well as strategic alliances.
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The Marketing Mix

4.Place
Being the national flag bearer, the airline intended to position itself to be the best of the lot. But, its a cruel fact that the airline has not able to place itself in a way that may have earned the desired position. This might be due to some managerial as well as structural limitations.

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The Marketing Mix

5.Process
Starting from the first enquiry about the flight timings and the air fare package to the collection of the baggage from destination is the complete Airway Travel Process. Unfortunately, the airline struggles most in this aspect of the mix and the same factor has contributed most in deteriorating the Positioning.
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The Marketing Mix

6.People
For services, the people are the most important part of the marketing mix. They are visible and their presence makes it confirm that the service is there. Their interactive property makes them the factor that may simply consolidate the customers perception. Same like the Process, PIA has also struggled in this aspect also.
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The Marketing Mix

7.Physical Evidence
The biggest airline of the country has its presence in all of the major cities nationwide as well as globally. With a fleet of about 50 aircrafts, the airline has got enough leverage to support its portfolio and has given a wide vroom to the management to design a competitive and effective marketing strategy.
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Suggestions to Improve
The Process should me made more customer friendly even if it contributes in the cost hike. Training programs may be introduced to train the Crew and the Pax Services staff. Its a big advantage for the airline that it was a first one to introduce Boeing 777 in its fleet, so the same may be highlighted where needed.

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Suggestions to Improve
To kill the perception that has developed in the minds of the target market, special promotional campaigns may be initiated. The airline has enough vroom to play with the Price if it plans to improve the Position, Process and the People. Trained staff should be hired far baggage control as for many customers the baggage safety is one of the prime issues.
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Questions???

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