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Current Airlines of Pakistan:

Pakistan International Airlines


Aero Asia
Air Blue
Shaheen Air International
Cargo Airlines of Pakistan:
Pakistan International Cargo
DHL Cargo Pakistan
Royal Air Cargo
Star Air
TCS Couriers
MARKET SIZE AND MARKET GROWTH:
The total market size for the year 2006-2007 was 14.199 million passengers as
compared to 14.615 million passengers for the year 2005-2006, therefore resulting
to an
in decrease.
PIA BRAND
Brand Characteristics
The product that PIA offers is the transportation routes (both domestic and
international)
for passengers (seats) and for cargo (space). PIA 's basically an air travel service
provider therefore it fulfills the general characteristics of services (intangible,
inseparable, variable, perishable and simultaneous) as well as it has some tangible
aspects in terms of newspaper/magazine, meals, in-flight entertainment system.
Problems of this Organization
PIA 's getting losses for many years. No serious effort is done to get out it from
losses.
During the last year Pakistan International Airlines (PIA) has stained a loss of
PKR13.4
billion ($207.5 million). Operationally, it was also blacklisted by the European Union
during the year, which hit its bottom line along with its prestige.

Losses for the year have widened slightly from a loss Of PKR12.76 billion recorded in
2006.
Pakistan International Airline is currently ranked amongst the top 20 airlines of Ash.
It
has the capacity of becoming on top of the list. But due to certain reasons its
market
share has been decreasing both in the domestic as well as 'n the 'international
market.
Although it is still occupy' ng a strong position in the domestic circuit being the
national
flag carrier but the current position threatening for the national flag carrier.
During the last four years the company has beard the accumulated loss in excess of
30
billion rupees, while its total debt is almost reaching 1 billion $. The expenses of the
company are increasing but the profits are decreasing. A the shareholders money
gone and the company is facing the worst financial situation. PIA has lost its market
share -n domestic airline market, which has dropped to 69 % in the FY 2007/08.
Things
on international front were also not so different for PIA, as national airline's market
share in the 'international market dropped from 48 to 43 %. Profitability of PIA
decreasing. The share price Of PIA closed at Rs 5.25 on June 14, 2008.
The company beard the loss of 13.39 billion Rs. In 2007, about 12 billion Rs. in
2006.
Pakistan International Airlines currently facing a loss of approximately 40 million Rs.
per day.
Problem Description:
According to our research the company having the problem in the following areas.
The problems for Pakistan International Airlines include:
Lack of Brand Awareness
Low scale advertisements and awareness:
A common Pakistani may even not know about Pakistan International Airlines. No
advertisements and awareness to the organization's brands in such a modern era Of

marketing. Cricket stars and sportsmen are hired on heavy salaries but with no
profit to
the organization. Pakistan International already being an ethnic airline is just
confining
itself to its own country. No such efforts to enhance the brighter and soft 'mage of
the
nation as well as airline are made.
Building brand equity by considering the SIX BUILDING BLOCKS approach
Brand Awareness:
Creating brand awareness one of the key steps in promoting a product.
Advertisement
PIA 's advertising products (destinations) through different mediums. PIA has
advertised in News papers (DAWN NEWS, THE DAILY NEWS, JUNG and planning for
Other a so,);. PIA is also advertising through transports (painted corporate
image Of PIA on transport sides). The firm is also advertising through press releases,
in
the news articles. Public relations are being made by the employees Of PIA which
enhances the firm" s image. PIA had sponsored in the Cricket events.
How more effective awareness can be made
PIA should advertise on TV channels like other airlines are advertising. BBC and CNN
would be great for advertising, because most Of the people watch these channels in
the
Present days. TV ads give competitive advantage to the competitors Of PIA.
Radio Ads
Pia need to advertise there new promotion on radio channels for more effective
awareness about the brand
News Paper ad
Special news paper ads, e.g half paper ads on front page and advertising in Sunday
Special Magazines which most people read.
BRAND RECOGNITION
PIA has high brand recall. It recognized by travelers all over the country. PIA a

national airline, operating passenger and cargo services covering eighty-two


domestic
and foreign. PIA has earned the Satisfactory ranking in customer satisfaction. This
strong market position gives the company a scale advantage and helps strengthen
its
brand image.
Brand image
Brand image The impression Of a product held by real or potential consumers.
PIA paints the brand image Of being the less price taker and providing high quality
to the
customers as compare to the competitors.
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
homecountry carrying the national fag. This arises the loyalty factor in the hearts of the
expatriates and they prefer to travel by PIA
But today Pia had lost its brand image because of its poor quality services and high
price taker.
And With already going 'n financial loss, 9/11 impact on the industry and above all
incapability of Pakistan International Airlines' management has badly damaged the
image Of the Airline. Due to all such problems the fares Of PIA are higher but
service
not up to that class. This also gives a bad mage to the passengers.
Its time for PIA needed to rebuild its image and change the perception of the brand
in
the eyes of Pakistani nationals and Pakistanis living overseas, as well as other
international passenger
How Pia can make strong Brand image in its Customer mind?
By properly market' ng 'itself PIA will present a better image to the world. By clearly
describing facilities and projecting its 'mage it will help in growing market share.
Management should ensure the punctuality of flight, in flights services and their

standard must be world class. Safety and maintenance issues for the planes must
be
strongly checked. Management's perspective should be to increase the profitability'
and
ensure the good image Of Pakistan. Security and safety Of cargo must be ensured.
It
must be managements responsibility to ensure services to the passengers both in
plane and at airport as well.
Effective campaigning of the special interests tourists' packages for Pakistan to
increase the travel to Pakistan must be done. Soft and brighter 'mage of Pakistan
and
PIA must be enhanced.
Passenger sales must be held responsible to boost sales by 'introducing different
types
Of packages. It must also have the responsibility for handling customer queries and
complaints.
Come us
Cargo division must be responsible for supplying both perishable and nonperishable
goods 'n the global market place.
Discipline should be the key factor for the organization. Policies must be clearly
defined.
Goals and objectives should be determined for the organization as a whole and
individually as well . Management must assure that each and every person is
committed
to his job and the organization is going towards the achievement of 'its targets.
Modernizing the airline's fleet is badly needed as well proper maintenance of the
fleet
required.
Better and modern functioning of training and development department. Need for
accountability.
Brand Knowledge:
Brand Knowledge is a function of awareness, which relates to consumers' ability to

recognize or recall the brand, and image, which consists of consumers' perceptions
and
Of associations for the brand.
PIA very easily recognized and recalled because it is named after the country" s
name, has green logo and a very memorable slogan. This will help to show a high
level
of awareness about the brand
Brand Elements and Differentiation
Name: Pakistan International Airlines (PIA)
IJRL: www.piac.com.pk
Logo:
Slogan:
Great People to Fly With
Come Fly with Us
Ba-Kamal loog Lajawab Service
Color: Green
National Flag on aircraft tail
Brand Differentiation:
The brand differentiation is basically brought by positioning of brands. Positioning
the
place which the brand makes 'n the minds Of the customers or in market.
Competitive Position of PIA
Differentiation
Competitive Moves
PIA having 48.4% market share internationally and 65% domestically, and PIA
has the Market Leader Competitive Move in Pakistan.
Competitor Attack Strategy
The attack strategy of PIA against competitor Air Blue is Flanking Attack
Strategy.
Positioning of PIA
PIA" s existing Positioning Strategy

Currently PIA positions within the following positioning strategies.


1) Positioning by attributes.
2) Positioning by price and quality.
3) Positioning by product user.
Positioning by Attributes
In this strategy PIA positions 'itself in the mind of the consumers as the reliable air
transport service provider. Because from all the air 'ne companies of the world PIA
has
the least crash rate. By positioning the reliability attribute of the airline in the minds
of
the consumers, people prefer to travel from PIA. Because of the safety attached
with
the PIA. Attribute of speed is also attached with this positioning strategy of PIA. No
matter the flight takes-off half hour late but it will reach to the destination on the
exact
time i.e. will not be late. Characteristic of safety is also associated with the airline as
PIA
has the following certifications.
-European Aviation Safety Agency (EASA)
-IATA Operational safety Audit (OSA)
-Civil Aviation Authority of Pakistan ( in accordance with the International Civil
Aviation
Organizations Standards)
Positioning by Price and Quality
In this positioning strategy, PIA can paints the image of being the less price taker by
providing high quality to the customers as compare to the competitors. Examples
given below
Introduction of New Additional Low Cost Flights Packages
"PIA express" PIA introduced additional low cost flights. PIA express at 20% less fare.
1)This facility available in Business Plus, Economy Plus & Economy Class.
2) No meals.
3) Stand by fares applicable.

Positioning by Product User.


PIA positions as an ambassador of Pakistan in the world. Pakistani expatriates
residing outside the country feels proud when they see an airline Of their own
homecountry carrying the national flag. This arises the loyalty factor in the hearts of the
expatriates and they prefer to travel by PIA.
RECOMMENDATIONS for PIA
PIA should upgrade its fleet as it is causing the airline higher operating cost and PIA
is
incurring -PIA should purchase new Airplane With twin engines these will reduce
the operating cost of PIA Airline should focus on the customer's satisfaction, refund
process should be quick so that customer remains loyal to brand.
(i) There should be clear and even distribution of work and only person should be
appointed on jobs.
(ii) There should be improved service standards that should focus on quality. PIA
should offer its services of reservation and seat confirmation with by SMS and flight
confirmation message should also be sent via SMS to the passenger.
(iii) PIA should give more incentives to its frequent flyer as will generate more brand
loyalty by giving better incentives to the customers
(iv) Marketing department must deliver in order to create a strong figure for the
organization. It must be responsible for creating more sales and getting more
market
share. Providing awareness about the good characteristics of the organization.
Getting
information on related field and report to the top officials.
Decentralization:
PIA should decentralize structure that would lead to the easy management and
increased motivation.
Transparent policy adoption:
PIA should adopt transparent policy that employees should be promoted on merit

basis. And Chairman Of PIA should be appointed from with in the organization.
Union
should support it, it will motivate the employees and PIA will grow in profit.
(i) By purchasing new fleets the repairing cost decreases and attracts the customers
that cause to decrease the cost and 'increase the revenue of PIA. Fleet
modernization
will bring more security, safety, less maintenance expenses and will project a
brighter
image of the airline.
(ii) Training and development of employees will prepare the employees for current
tasks
and for future challenges.
Marking policy
PIA should adopt good marketing policies so that will bring higher profit and
maximum
utilization of its available resources, Business sector should be attracted to operate
at
full potential.
1) Modernizing the airline's fleet is badly needed as well proper maintenance of
the
fleet required.
2) Must take advantage of the increment in the air transportation especially
towards
Middle East countries and India.
3) Better and modern functioning Of train 'ng and development department
4) Need for accountability.
Things to attract passengers from a passengers point of view

On time flights
Newer aircraft e.g. Boeing 737 are Ok or B777.
Extra services on board like amenity kits in Economy too!
A variety Of newspapers and magazines
More services at the airport
Lower prices!!
Quicker, transit to next flight. For example I would take a cheaper flight if the

Connection time was less and cheap.