Appendix I

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT
FACULTY OF BUSINESS AND FINANCE
ACADEMIC YEAR 2020/ 2021

UKTM1013/UBTM1013 PRINCIPLES OF MARKETING

GROUP ASSIGNMENT ASSESSMENT FORM
Company: AirAsia Company

Student Name Student ID Tutorial & Group

1.Choo Xi Xiang 1904143 T5
2.Lee Man Hong 1903048 T5
3.Sin Yi Feng 1904308 T5
4.Tan Yu Zhe 1902141 T5
5.Teng Qian Hui 1903107 T5

Assessment Marks Marks

Allocation Awarded
Company Introduction 5 marks

Marketing Environment 10 marks

SWOT Analysis 10 marks

Marketing Strategy 20 marks

Problems and Recommendations 10 marks

Quality of the written assignment 5 marks

Total Marks 60 marks

Marks to be converted to 30%
Comments (if any):

Name of evaluator: Signature of evaluator:

Course Plan of UKTM1013/UBTM1013 Principles of Marketing (Oct 2020)

Marketing assignment AirAsia
ORIGINALITY REPORT

11 %
SIMILARITY INDEX
11%
INTERNET SOURCES
0%
PUBLICATIONS
%
STUDENT PAPERS

PRIMARY SOURCES

1
www.marketing91.com
Internet Source 3%
2
www.ukessays.com
Internet Source 2%
3
avconet.com
Internet Source 1%
4
www.1travelmall.com
Internet Source 1%
5
www.greenontheinside.net
Internet Source 1%
6
www.publicnow.com
Internet Source 1%
7
www.coursehero.com
Internet Source 1%
8
thethaiger.com
Internet Source 1%
9
phdessay.com
Internet Source <1%
10
www.theedgemarkets.com
Internet Source <1%
11
www.thestar.com.my
Internet Source <1%
12
www.studocu.com
Internet Source <1%
13
www.scribd.com
Internet Source <1%

Exclude quotes On Exclude matches < 8 words

Exclude bibliography On
Table of Content
Numbers Title Pages

1. Company Introduction: 1

•Background 1

•Vision and Mission 1

•Number of employees and Types of Products and Services 1

2. Marketing Environment: 2-3

•Macroenvironment Analysis 2

•Comprehensive Competitive Analysis 3

3. SWOT Analysis 4-6

4. Marketing Strategy: 7-16

•Objective of the marketing strategy 7

• Target Market 7-8

•Competitive advantages 8-9

•Products/services are being sold 10

•Promotion mix is being used 11

•Channels of distribution is being 12

used
•Pricing strategies are being used 12-13

•Branding is being used 14-16

5. Problems will be faced and the solutions 17-18

References 19-21

Appendices -

1
1.0 Company Introduction

AirAsia is a low-cost airline company based at Malaysia's Kuala Lumpur International

Airport. The airline was established in 1993 under the name of Tune Air. Before 2001, Tune Air
was unable to enhance the market well enough and to attract enough customers from Malaysia
Airlines to develop its niche market. On 2 December 2001, due to a failure to establish the
airline, Tune Air Sdn Bhd was purchased by Tony Fernandes and named it as AirAsia. Tony
Fernandes, CEO of AirAsia, the innovator of a cross-border joint venture in Asia, has set up
units based in Bangkok, Thailand and Indonesia, Jakarta. AirAsia has won the most affordable
and award-winning airline in Asia in 2019. AirAsia has a 72-aircraft fleet, operates 108 daily
routes, and more than 400 flights to over 61 domestic and international destinations.

The objective of AirAsia is to become Asia's largest low-cost airline organization

by providing services to 3 billion people and lead to everyone can fly.

Mission Vision

• To be the best organization for workers • Become largest low-cost Asia's airline
to work for as part of a large family and provide service to 3 billion people
• Build an ASEAN brand recognized with poor connectivity
globally
• To get the lowest price so that everyone
with AirAsia can travel

1
2.0 Marketing Environment of AirAsia:

Economic Environment

AirAsia was first set up in Malaysia, which is a practical middle-class country where people
work hard to raise their living standards. The median income of Malaysia is recorded at
RM5873, while the mean income is recorded at RM7901. By having a lower flight price, AirAsia
has always been a popular choice for flight purposes in Malaysia. The increase in oil price has
been a constraint for AirAsia, as the price of jet fuel is the largest cost among airlines which can
easily affect their profit and the shares price of the stock exchange. Despite having this problem,
AirAsia still decided to keep the airline ticket prices low. Due to the pandemic of Covid-19, the
buying power of Malaysia has been decreasing since the start of 2020, which also causes the
profit of AirAsia to decrease.

Technological Environment

Technology plays an important factor in the business of AirAsia. Most of the services are done
online such as booking a ticket, checking flight information, online shopping like booking hotels
and more. AirAsia also has created pages and blogs on various websites to give information like
cultures, policies, and more. They also accept feedbacks of customers to improve their services
and other cases. AirAsia uses Google Cloud’s machine learning and AI (artificial intelligence)
for its business which allows AirAsia to make full use of the data Google Cloud owns to
discover new opportunities to build new businesses. Using these data, AirAsia is also able to
serve their customers better.

Political Environment

As an airline company, AirAsia has obtained Air Operator Certificate which is issued by the
Civil Aviation Authority. It is important as it is an approval for a pilot to use aircraft for
commercial uses and to ensure the safety of their employees and the public. AirAsia also has the
Malaysian Airport Holding Berhad checking on the management and operation to ensure safety
and security of the passengers. Having a good political environment also helps AirAsia setting
up in other countries.

2
Cultural Environment

AirAsia pays a lot of attention about to customers. As majorities of the people in Malaysia are
Muslims, AirAsia has not been selling foods and drinks of the “non-halal” category. This
category of foods and drinks are only available for AirAsia X, which is AirAsia for international
customers. AirAsia’s website has a wide range of languages to prevent the barriers of language.
This makes it user-friendly and they are also able to advertise easily.

Competitive Analysis

AirAsia has a lot of competitors, as a lot of the airline companies have similar routes to travel
around the world such as Firefly, Malindo Air and Malaysia Airlines. Malaysia Airlines is the
main competitor of AirAsia, as it also provides the low flight price for the passengers. Malaysia
Airlines is also one of the more popular airline companies in Asia, as it provides a better service
for the passengers such as providing foods without charging extra fees. They also provide a
better luggage handling system, which it does not charge extra fees when the luggage does not
exceed 15kg while AirAsia does charge extra if the luggage exceeds 15kg.

3
3.0 SWOT Analysis of AirAsia
Strengths

• Low cost

AirAsia has been positioned as a low-cost airline. The airline succeeded in ensuring that they
always kept their operating costs as low as possible. It has been successfully implemented to
make everyone can travel through AirAsia.

• Service innovation

Figure 4.1: AirAsia Mobile Application (Staff writer. 2019)

AirAsia has developed its smartphone applications for iOS and Android, adding innovative
tool to improve customer experience. This AirAsia mobile app included new features such
as a new booking system and an interactive search map, flight discussion forums and
seamless access to boarding passes through the Apple e-wallet.

• Provided a variety of local Malaysian food in-flight

Figure 4.2: Roti Jala, Nasi Lemak and Chicken Rice (Cameron. 2017).

Tony Fernandes, CEO of AirAsia Group, believes that food is a great unifying factor across the
region. They want customers to experience local Malaysian food so that they replicate the
ground food experience on board to create a unique food experience. AirAsia group’s goal is to
create the first restaurant brand that is delicious and affordable in the sky.

4
Weakness

• Low Profits

In order to maintain its position among low-cost airlines, AirAsia keeps its prices as low as
possible, so AirAsia is relying solely on sales to make profits, which has led to lower profits and
a continued reduction in revenues. It is difficult for AirAsia to strike a balance between the
quality of service and price while maintaining low costs. Low profits, therefore, limit the space
for many of AirAsia to provide better services. Therefore, AirAsia received a lot of complaint
about the flight seat.

Figure 4.3: Seat reviews of AirAsia (Tee, K., Adams, D., Adams, D., Rudd, D., Ramangat, H.,
Oswin, O., Chung, R., Pang, S., Ashiblie, J. and Sims, D., 2020)

Since consumers are not able to compromise on quality simply because AirAsia charges a low
price, AirAsia has received a lot of customers' dissatisfaction with the comfort of their seats.
Most of the dissatisfaction lies with the seating space, the seat arrangement, and the
uncomfortable with seat legroom and seat recline.

Opportunities

• Cuti-Cuti Malaysia

Figure 4.4: AirAsia RM399 Unlimited Pass Cuti-Cuti Malaysia (JINN XIUNG. 2020)

5
As AirAsia has good governance and citizen relations in Malaysia, AirAsia has signed a "Cuti-
Cuti Malaysia" contract with Malaysia, and AirAsia will serve all customers related to "Cuti-Cuti
Malaysia" flights. AirAsia has introduced the Unlimited Cuti-Cuti Malaysia Pass, which makes it
possible passengers to travel in the country several times at a price of RM399, and RM499 for
unlimited overseas destinations.

• Increased travel to South Asia

South Asia has always been a very popular travel area, especially destinations such as Singapore,
Malaysia and Thailand are very popular, and holidays have also increased leisure travel.
According to the Mindanao Times report, Southeast Asia attracted 133.1 million tourists in 2019.
These are all the opportunities AirAsia can take advantage of.

Threats

• COVID-19 crisis

The COVID-19 crisis has resulted in the closure of AirAsia borders in most major markets, it
affects in reducing the total number of passengers by 22% to 9.85 million. This has made
AirAsia's losses very serious, with a net loss of RM835.55 million for the first quarter of March
2020, while AirAsia Group lost another RM929.89 million for the second quarter of June 30,
and the threat posed by COVID-19 to AirAsia has so far remained. Not only that, but too many
of the competitors are another major threat to AirAsia such as Thai Airways, Malaysia Airlines,
Lion Air, British Airways, and others. In such a difficult period now if AirAsia is unable to beat
several competitors, it will easily be eliminated.

Figure 4.5: Asian Airline (P PREM KUMAR. 20

6
4.0 Marketing strategy

The objective of the Marketing Strategy

“To be the lowest cost short-haul airline in every market, and to continuously launch new
routes under AirAsia” are the marketing objectives of the AirAsia. AirAsia was preparing to
carry about 70 million passengers per year within 6 years starting from 2014 which was one
of their objectives. Besides, they are planning to develop their existing curding range by
adding more routes and frequencies. To achieve their Philosophy of “Now Everyone Can
Fly”, AirAsia had transformed from the low-cost carrier terminal at KL International Airport
(KLIA2) into the hug for budget travel. (MarketPLANNINGAIRASIA, n.d.)

Figure 4.1: AirAsia’s airplane. ("airasia.com | For Everyone | Flights, Hotels, Activities &
More", 2020)

Target Market

The price of AirAsia’s tickets is known as economical and practical. Hence, the market that
they are targeting normally are students, businessmen, tourist and workers who wanted to
travel around the countries for broadening their horizon and making the business overseas.
Airfare promotional fares that release by the AirAsia is as low as RM1. This is due to the
reason AirAsia would like to provide more chances and mobility for the low- and middle-
income family to travel. ("Marketing Mix of Air Asia - Free Essay Examples Database",
2020)

AirAsia’s flight ticket is always the first choice of businessmen as the price of the ticket is
low at any time and it can help in reducing the company cost. On top of that, the next target
of the AirAsia is families. During the school holidays in March, June and December, the
parents will plan for a family trip to anywhere and AirAsia has grabbed this golden

7
opportunity for providing the lowest cost for the flight and this directly help the families
enjoying the cheap flight. The AirAsia has introduced the reduction of price sales to suit all
class of their customers for letting more low pay workers have the chances of travelling by
paying with low fares. Last but not least, AirAsia also attracts the foreign workers from
Indonesia, Vietnam, Thailand and more as the price of the flight ticket will not increase their
burden in their daily lives. ("Marketing Mix of Air Asia - Free Essay Examples Database",
2020)

Below is the diagram of the comparison of the price of AirAsia’s flight ticket and
another airline company:

Figure 4.2: U.S. Cents per Seat (2020)

The information that we can know that the AirAsia has occupied the cheapest dollar per
seat by comparing to the others.

Competitive Advantages

There are some competitive advantages of AirAsia compared to the other airline companies
which are low-cost models, the flat organizational structure and effective staff policies and
fully utilization of Information Technology.

First of all, the objective of the AirAsia is focusing on offering air travel without frills at
substantially lower prices for bringing the benefit to society. Hence, the AirAsia company
eliminates a provision of costly in-flight, overhead cost and more for reducing the costs of
operation. Besides, the aircraft lease rate, long-term maintenance of contracts rates and
airport rates have been negotiated to be lower. This is ultimately lead to the AirAsia is
available to supply the lowest fares among the markets compared to the other competitors.
Below is the diagram that comparison between AirAsia and the other airlines:

8
Figure 4.3: Flight Ticket Comparison from Kuala Lumpur to Tokyo. ("Pemburu Tiket
Murah", 2020)

On top of that, AirAsia also fully utilize Information Technology. This helps them in keeping the
low distribution cost. AirAsia is the first airline to utilize e-ticketing and bypass traditional travel
agents in Southeast Asia. This action can help them to save the cost of issuing physical ticket
which is estimated at 10 dollars per ticket and eliminate the need for large and expensive booking
systems and agents’ commissions. The Malaysian had voted the AirAsia’s website as the most
popular side for online shopping in 2004. The internet bookings increased sharply from 2% in
2002 to 50% in 2004. To increase the accessibility to consumers while having lower distribution
costs, AirAsia made its tickets available via post offices and ATM.

Figure 4.4: AirAsia’s website in 2004. ("airasia.com | For Everyone | Flights, Hotels,
Activities & More", 2020)

Lastly, AirAsia able to have substantial cost savings by operating a single aircraft type. This
is due to the reasons that maintenance was simplified, spare parts inventory was minimized,
the requirement of facilities and equipment were decreased and more. Thus, the AirAsia
could operate the company at a lower cost. ("Strengths and Weaknesses of AirAsia", 2020)

9
Products and Services

The products of the AirAsia are guest convenience and frequent flight while the services are
the ticketless service and easy payment channels.

First, AirAsia believes that travel to be easier and more affordable for its guests by providing
convenient service to their guest. Bookings can be made by guests through many methods
like online booking. AirAsia had caught the trend to be the first airline company to introduce
SMS booking for the customers to book their flight tickets, check the latest flight schedules
and even receive the latest information about its promotion from their mobile phones in
anywhere and anytime in August 2003. The frequent flight is the main products of the
AirAsia. To fulfil the convenience of the guests, there is a high frequency of flight services
that are provided. The turnaround of the AirAsia is the fastest in the region which is 25
minutes, and this ultimately led to high aircraft utilization, greater airline and lower costs and
even staff productivity. ("Marketing Mix of Air Asia - Free Essay Examples Database",
2020)

Figure 4.5: The Schedule of AirAsia’s Flight. ("airasia.com | For Everyone | Flights, Hotels,
Activities & More", 2020)

The ticketless service was officially launched by the AirAsia on 18 April 2002. The reasons
why that this service is applied as it is complemented with AirAsia online booking and call
centre service by offering a low-cost alternative to issuing the printed ticket. Therefore,
guests have saved their time by not going through the hassle of collecting tickets. The
AirAsia had become the first airline of Malaysia to release easy payment channels. The easy
payment channels allow their guests to make the payment through the telephone bookings by
credit card or cash at any Alliance Bank branches since 1 March 2002. This service is
according to its “Easy to Book, Eat to Pay & Easy to Fly” approach. ("Marketing Mix of Air
Asia - Free Essay Examples Database", 2020)

10
Promotion Mix

The AirAsia called itself as a brand with credible performances and it advertised by the print
media like newspaper, magazines and mores through print ads on billboards for opening their
popularity. It also plays a significant role in adopting some of the policies to uphold its
passenger’s interest in the airline sector. A successful step which is implemented by the AirAsia
via The Big Loyalty Programme has built customer value. Thus, the privileged passengers are
allowed by the highly acclaimed campaign to earn points during each transaction they implement.
The points can be considered as a benefit to the customers to redeem free air tickets during next
travel based on terms and conditions. Besides, several privileges like the Red-Carpet Treatment
that includes buggy service, priority baggage tags, priority boarding, priority check-in, lounge
access and security clearance are provided by the AirAsia to its customers. As time progress, the
AirAsia also take the low-cost methods which are emails and SMS to inform and share their
customer the new offerings, their travel arrangements and related information, incentives and
changes. The AirAsia believes sponsoring to the sports team could help them in increased
exposure. So, it decides to enter into carious sponsorship deals and sponsors Singapore National
Football Team, Malaysia National Football Team and Queens Park Rangers. The recognition and
awards involving Best Low-Cost Carrier in International travel have been undertaken the whole
thing by AirAsia for consecutive nine years. Now, everyone has known that the AirAsia’ tagline
is “Now Everyone Can Fly”. This directly proves that promotions done by the AirAsia are
successful. (Bhasin, 2020)

Figure 4.6: Malaysia Football Team. ("These are Malaysia national football team they are
called Persatuan Bolasepuk Malaysia. Foot… | Malaysia national football team, Most popular
sports, Popular sports", 2020)

Figure 4.7: Singapore Football Team. (MENG, 2020)

11
Channel of Distribution
Travelport is the channel of distribution of the AirAsia that help it in distributing all of its
ancillary services and fares through the Travelport GDS. They had started their partnership since
25 March 2014. Travelport’s industry-leading merchandising technology is also signed up by
AirAsia as a part of the agreement which is involving its unique aggregated shopping
functionality. These will result in travel agents are allowing to shop, compare and book AirAsia
and AirAsia X flights alongside those offered by traditional carriers in the same booking
workflow. The agreement can be defined as the agents who connect with the Travelport able to
search and book competitive fares and popular ancillaries such as advanced seat selection,
checked-in bags and in-flight meals provided by all airlines under the AirAsia group. ("AirAsia
and Travelport Sign Breakthrough Distribution Agreement", 2020)

The AirAsia Group CEO, Tony Fernandes had said that “The GDS
channel that provided from the Travelport Merchandising Platform
can be connected by AirAsia flexibility and enables them to
distribute their low fares to even more tourists as they continue to
expand our offering.” ("AirAsia and Travelport Sign Breakthrough
Distribution Agreement", 2020)

Figure 4.8: ("Tony F. Fernandes - ASB Board of Governors", 2020)

Pricing Strategies

The AirAsia had released a flight ticket with different style and prices. Thus, the customers
can select the types of flight tickets that suitable for themselves like unlimited pass and
AirAsia free seat 2020/2021.

The AirAsia Unlimited Pass is the customers can take unlimited flight for a year which is
from 2 March 2020 to 2 March 2021 with AirAsia X to Australia, Japan, China, Korea and
India with only RM499 Nett. The customers must follow the terms and conditions like the
flight booking must be made at least 14 days before departure. In the different seasons, the
customer can even choose when and available location to travel over and over again. The
AirAsia Unlimited Pass can be only bought by all Malaysia-based AirAsia BIG members on
airasia.com/deals or mobile app from 29 February 2020 to 7 March 2020. ("AirAsia
Unlimited Pass: all you can fly for a year! — AirAsia newsroom", 2020)

12
Figure 4.9: AirAsia Unlimited Pass ("AirAsia Unlimited Pass: all you can fly for a year! —
AirAsia newsroom", 2020)

Besides, the AirAsia free seat 2020/2021 is also known as AirAsia Big Sale 2020, which is
flying to domestic and international like from Kuala Lumpur to Bangkok, Krabi, Taiwan,
Langkawi, Hong Kong, Singapore and other from RM0. The period that can enjoy the
AirAsia free seat is from March 2020 till July 202, and it can be booked on 9 to 15 March
2020. The seats will be unavailable while sold out for all flight and destination involving
school breaks, public holidays and weekends. The customers could enjoy the promotions
which are limited to regular base fare only and it does not include Premium Flex or Value
Pack bundled category by booking at airasia.com and AirAsia mobile app. ("AirAsia FREE
SEAT 2020 / 2021 (Fares, Booking and Travel Date)", 2020)

Figure 4.10: AirAsia Free Seats 2020 ("AirAsia FREE SEAT 2020 / 2021 (Fares, Booking
and Travel Date)", 2020)

13
Branding Strategies

By comparing the logo of AirAsia and Virgin’s Airlines, there are a lot of similarities like
they are red and white, and the name of the company is written with the script. Below is the
diagram of both airline company:

Figure 4.11: Virgin Airline. ("Virgin Australia and Virgin Atlantic set to deepen ties", 2020)

Figure 4.12: AirAsia Airline. ("airasia.com | For Everyone | Flights, Hotels, Activities &
More", 2020)

Besides, cost leadership is successfully adopted by AirAsia with operational effectiveness

and efficiency. AirAsia is enabled by cost advantages to become Asia’s leading low-fare
airline. AirAsia has successfully positioned itself in its customers’ mind by using a simple but
strong slogan “Now Everyone Can Fly”.

Figure 4.13: AirAsia Airline with Slogan. ("airasia.com | For Everyone | Flights,
Hotels, Activities & More", 2020)

Skytrax had selected AirAsia as the World’s Best Low-Cost Airlines from 2015-2017 and it
quickly develops, spinning off Thai AirAsia, Indonesian AirAsia and AirAsia X, which are

14
the low cost and long-haul airlines. There are a lot of different categories of business that
own by AirAsia like low-cost hotel chain, Tune Hotels and Tune Money, an Asian online
financial services portal, Tune Talk, and The Formula 1 Lotus Team. Below is the logo of
business that own by the AirAsia.

Figure 4.13: TuneTalk. ("Malaysia Mobile Prepaid", 2020)

Figure 4.14: Lotus F1 Team. ("Lotus F1", 2020)

Furthermore, the aviation industry is also surprised by Datuk Tony Fernandez as he is striking
a sponsorship deal with the National Football League’s Oakland Raiders, but the AirAsia does
not provide flights to the United States so far. This will cause him to redesign the AirAsia fleet
for carrying the Raiders name and the team logo. Permission for flying to the West Coast will
be applied by AirAsia soon as sponsoring the NFL team.

Figure 4.15: AirAsia with Raiders. ("Oakland Raiders owner Mark Davis and AirAsia
Group Chief Executive...", 2020)

15
AirAsia as well as a promotional innovator in the online world, it had invented an airline’s
fast-growing travel portal which is AirAsiaGo.com. This portal offers flight service like
discount doe per booking meals online and there are deals on hotels, activities and travel
services promoted. In October of 2019, the airline also launched a hip microsite to support it
when AirAsia created its first-ever brand campaign. ("Branding Strategies Are the Long
Term Marketing Support Marketing Essay", 2020)

16
5.0 Current problem faced by Air Asia & Solution.
Due to the impact of Covid-19, the global tourism industry will affect their sales as
some of the people will avoid travelling because it will affect the safety and health of
everyone. Since 18th March, government announce for movement control order
(MCO). Due to the impact of MCO, Airline company will all get effect on the
demand because everyone is not allowed to travel to other countries without approval
from the government.

Problem: Pandemic effect sales drop

Due to the global pandemic covid-19, everyone might get afraid to travel in early of
the year. Some people will not worried
on it, but some of it will, so Air Asia
Group BHD is facing a revenue drop in
the 1st quarter of the year. Their
revenue in the first quarter until 31 of
March 2020 is RM2,161,411, their
revenue drops RM465,926 compared
with the 1st quarter of 2019, RM
2,627,337.
Figure 5.1: Sales drop in the first quarter

Solution: Cut manpower, increase their cash flow

Under the situation of movement control, the government also announced that “work
from home” directive since 22 of Oct 2020. The limit of movement of people is
necessary to contain the spread of covid-19. So, since the limitation of people to work
Air Asia Group BHD can do retrenchment for retrenching. They can retrenchment
10% of employees and cut off 30% salary of the management team.
Other than that, Air Asia can uses a part of the
reduced cost to hire people that are experienced to
face difficulties to improve our current staff’s crisis
awareness, so that we can solve current problems
faster and enhance company operations
Figure 5.2: Air Asia retrench

17
Problem: Demand for flight ticket falls

Passenger Carried in 3rd Quater

1,772,821
Passenger Carried
8,845,823

2020 2019

Figure 5.3: Passenger carried in 3rd quarter 2019 & 2020

Since 9 of June 2020, Recovery Movement Control Order (RMCO) had announced,
everyone can travel to anywhere within Malaysia. So, the demand during RCMO will
lead to a good result than MCO. During the third quarter of 2020, there are 1,772,821
passengers carried and for the third quarter of 2019, there are 8,845,823 passengers
carried. So, there is still 80% reduction in the demand for 2020 compared to 2019.

Solution: Engagement of Business Partner

As the impact of a global pandemic, everyone will be getting more online
shopping. Air Asia can have a partnership with Taobao, Lazada, and Shoppe to
enhance the frequency of global logistic. The most attractive point is the launch of
different promotion and a one-week delivery guarantee for every purchase. They
can launch the promotion on special public holiday like Christmas Day and New year
date. Free shipping or 20% discount can be the way to enhance the sales on the
special
dates. Other than that, everyone knows the common weak
point of online shopping is taking the time of getting the
product after we purchase. To ensure our promise, their
marketing needs to develop more trade routes, reduce
transportation time to strengthen word-of-mouth, and
create more market opportunities for the company.

Figure 5.4: Partnership

18
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charges-may-weigh-airasia-groups-earningsTam, M. (2020). AirAsia to become a travel
technology company. Retrieved 10 November 2020, from
https://www.thestar.com.my/tech/tech-news/2018/10/10/airasia-to-become-a-travel-
technology-
company/#:~:text=LONDON%3A%20AirAsia%20is%20integrating%20Google,into%20a%
20travel%20technology%20company.
AirAsia. (2020). Retrieved 8 November 2020, from https://support.airasia.com/s/article/Is-
your-in-flight-food-HALAL-en?language=en_GBAirAsia. (2020). Retrieved 8 November
2020, from https://support.airasia.com/s/article/Is-your-in-flight-food-
HALALen?language=en_GB
Strengths and Weaknesses of AirAsia. (2020). Retrieved 8 November 2020, from
https://knoji.com/article/strengths-and-weaknesses-of-airasia/
Marketing Mix of Air Asia - Free Essay Examples Database. (2020). Retrieved 8 November
2020, from https://www.greenontheinside.net/marketing-mix-of-air-asia-essay-example/
Branding Strategies Are The Long Term Marketing Support Marketing Essay. (2020).
Retrieved 8 November 2020, from https://www.ukessays.com/essays/marketing/branding-
strategies-are-the-long-term-marketing-support-marketing-essay.php
Bhasin, H. (2020). Marketing mix of AirAsia - AirAsia Marketing mix explains. Retrieved 8
November 2020, from https://www.marketing91.com/marketing-mix-of-airasia/
irAsia partners with Travelport for distribution - WIT. (2020). Retrieved 8 November 2020,
from https://www.webintravel.com/airasia-partners-travelport-distribution/
AirAsia and Travelport Sign Breakthrough Distribution Agreement. (2020). Retrieved 8
November 2020, from http://ir.travelport.com/news-releases?item=1081
MarketPLANNINGAIRASIA. (n.d.). Retrieved from
https://www.researchgate.net/lite.publication.PublicationDownloadCitationModal.download
Citation.html?fileType=RIS&citation=citation&publicationUid=277717087
AirAsia Unlimited Pass: all you can fly for a year! — AirAsia newsroom. (2020).

20
Retrieved 15 November 2020, from https://newsroom.airasia.com/news/2020/2/29/eng-
aaunlimitedpass
(2020). Retrieved 15 November 2020, from
https://www.forbes.com/global/2010/1220/features-airasia-tony-fernandes-flying-on-
budget.html?sh=46d8d0e31e14
MENG, W. (2020). Football: Training centre for national teams and ActiveSG academy to
open in Kallang next year. Retrieved 15 November 2020, from
https://www.straitstimes.com/sport/football/football-training-centre-for-national-teams-and-
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These are Malaysia national football team they are called Persatuan Bolasepuk Malaysia.
Foot… | Malaysia national football team, Most popular sports, Popular sports. (2020).
Retrieved 15 November 2020, from https://www.pinterest.com/pin/553168766701965062/
Tony F. Fernandes - ASB Board of Governors. (2020). Retrieved 15 November 2020, from
https://asb.edu.my/about/board-of-governors/tony-f-fernandes
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deepen-ties/133028.article
Oakland Raiders owner Mark Davis and AirAsia Group Chief Executive... (2020). Retrieved
15 November 2020, from https://www.gettyimages.com/detail/news-photo/oakland-raiders-
owner-mark-davis-and-airasia-group-chief-news-photo/88693152
Lotus F1. (2020). Retrieved 15 November 2020, from
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MCO Updates • MDBC. Retrieved from https://www.mdbc.com.my/mco-updates/

21
 UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY AND MANAGEMENT
FACU FACULTY OF BUSINESS AND FINANCE
UKTM1013/UBTM1013 PRINCIPLES OF MARKETING
INDIVIDUAL PRESENTATION EVALUATION FORM

Name: Choo Xi Xiang Student ID: 1904143

Marks
No Items Poor Satisfactory Excellent
Allocated

2 6 10
1 Body gesture 4 8
(Below average) (Average) (Excellent)

2 6 10
2 Appearance 4 8
(Casual; Untidy) (Semi Formal; Neat) (Formal; Neat)

2 6 10
3 Voice Quality 4 8
(Inaudible & Muffled) (Audible & Reasonably (Loud & Clear)
Clear)

2 6 10
4 Language 4 8
(Not Fluent) (Reasonably Fluent) (Very Fluent)

2 6 10
Overall Eye
5 4 8
Contact (Little or None) (Some Eye Contact) (Constant Eye
Contact)

2 6 10
Adaptation to
6 4 (Some Attempt to Relate 8
Audience (No Attempt to Relate (Audience Thoroughly
to Audience) to Audience) Involved)

2 6 10
7 Self Confidence 4 8
(Slightly confident) (Somewhat confident) (Extremely confident)

2 10
6
8 Handling 4 8
(Poorly Dealt with (Competently
Questions (Fairly Well Handled)
Audience) Handled)

2 6
10
9 Timing 4 (Reasonably Well 8
(Badly Judged, Too (Precise)
Short /Long) Judged)

2 6 10
10 Overall Effect 4 8
(Very Dull) (Fairly Engaging) (Interesting &
Engaging)

Total 100 marks (Marks to be converted to 20%)

Course Plan of UKTM1013/UBTM1013 Principles of Marketing (Oct 2020) 14

 UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY AND MANAGEMENT
FACU FACULTY OF BUSINESS AND FINANCE
UKTM1013/UBTM1013 PRINCIPLES OF MARKETING
INDIVIDUAL PRESENTATION EVALUATION FORM

Name: Lee Man Hong Student ID: 1903048

Marks
No Items Poor Satisfactory Excellent
Allocated

2 6 10
1 Body gesture 4 8
(Below average) (Average) (Excellent)

2 6 10
2 Appearance 4 8
(Casual; Untidy) (Semi Formal; Neat) (Formal; Neat)

2 6 10
3 Voice Quality 4 8
(Inaudible & Muffled) (Audible & Reasonably (Loud & Clear)
Clear)

2 6 10
4 Language 4 8
(Not Fluent) (Reasonably Fluent) (Very Fluent)

2 6 10
Overall Eye
5 4 8
Contact (Little or None) (Some Eye Contact) (Constant Eye
Contact)

2 6 10
Adaptation to
6 4 (Some Attempt to Relate 8
Audience (No Attempt to Relate (Audience Thoroughly
to Audience) to Audience) Involved)

2 6 10
7 Self Confidence 4 8
(Slightly confident) (Somewhat confident) (Extremely confident)

2 10
6
8 Handling 4 8
(Poorly Dealt with (Competently
Questions (Fairly Well Handled)
Audience) Handled)

2 6
10
9 Timing 4 (Reasonably Well 8
(Badly Judged, Too (Precise)
Short /Long) Judged)

2 6 10
10 Overall Effect 4 8
(Very Dull) (Fairly Engaging) (Interesting &
Engaging)

Total 100 marks (Marks to be converted to 20%)

Course Plan of UKTM1013/UBTM1013 Principles of Marketing (Oct 2020) 14

 UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY AND MANAGEMENT
FACU FACULTY OF BUSINESS AND FINANCE
UKTM1013/UBTM1013 PRINCIPLES OF MARKETING
INDIVIDUAL PRESENTATION EVALUATION FORM

Name: Sin Yi Feng Student ID: 1904308

Marks
No Items Poor Satisfactory Excellent
Allocated

2 6 10
1 Body gesture 4 8
(Below average) (Average) (Excellent)

2 6 10
2 Appearance 4 8
(Casual; Untidy) (Semi Formal; Neat) (Formal; Neat)

2 6 10
3 Voice Quality 4 8
(Inaudible & Muffled) (Audible & Reasonably (Loud & Clear)
Clear)

2 6 10
4 Language 4 8
(Not Fluent) (Reasonably Fluent) (Very Fluent)

2 6 10
Overall Eye
5 4 8
Contact (Little or None) (Some Eye Contact) (Constant Eye
Contact)

2 6 10
Adaptation to
6 4 (Some Attempt to Relate 8
Audience (No Attempt to Relate (Audience Thoroughly
to Audience) to Audience) Involved)

2 6 10
7 Self Confidence 4 8
(Slightly confident) (Somewhat confident) (Extremely confident)

2 10
6
8 Handling 4 8
(Poorly Dealt with (Competently
Questions (Fairly Well Handled)
Audience) Handled)

2 6
10
9 Timing 4 (Reasonably Well 8
(Badly Judged, Too (Precise)
Short /Long) Judged)

2 6 10
10 Overall Effect 4 8
(Very Dull) (Fairly Engaging) (Interesting &
Engaging)

Total 100 marks (Marks to be converted to 20%)

Course Plan of UKTM1013/UBTM1013 Principles of Marketing (Oct 2020) 14

 UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY AND MANAGEMENT
FACU FACULTY OF BUSINESS AND FINANCE
UKTM1013/UBTM1013 PRINCIPLES OF MARKETING
INDIVIDUAL PRESENTATION EVALUATION FORM

Name: Tan Yu Zhe Student ID: 1902141

Marks
No Items Poor Satisfactory Excellent
Allocated

2 6 10
1 Body gesture 4 8
(Below average) (Average) (Excellent)

2 6 10
2 Appearance 4 8
(Casual; Untidy) (Semi Formal; Neat) (Formal; Neat)

2 6 10
3 Voice Quality 4 8
(Inaudible & Muffled) (Audible & Reasonably (Loud & Clear)
Clear)

2 6 10
4 Language 4 8
(Not Fluent) (Reasonably Fluent) (Very Fluent)

2 6 10
Overall Eye
5 4 8
Contact (Little or None) (Some Eye Contact) (Constant Eye
Contact)

2 6 10
Adaptation to
6 4 (Some Attempt to Relate 8
Audience (No Attempt to Relate (Audience Thoroughly
to Audience) to Audience) Involved)

2 6 10
7 Self Confidence 4 8
(Slightly confident) (Somewhat confident) (Extremely confident)

2 10
6
8 Handling 4 8
(Poorly Dealt with (Competently
Questions (Fairly Well Handled)
Audience) Handled)

2 6
10
9 Timing 4 (Reasonably Well 8
(Badly Judged, Too (Precise)
Short /Long) Judged)

2 6 10
10 Overall Effect 4 8
(Very Dull) (Fairly Engaging) (Interesting &
Engaging)

Total 100 marks (Marks to be converted to 20%)

Course Plan of UKTM1013/UBTM1013 Principles of Marketing (Oct 2020) 14

 UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY AND MANAGEMENT
FACU FACULTY OF BUSINESS AND FINANCE
UKTM1013/UBTM1013 PRINCIPLES OF MARKETING
INDIVIDUAL PRESENTATION EVALUATION FORM

Name: Teng Qian Hui Student ID: 1903107

Marks
No Items Poor Satisfactory Excellent
Allocated

2 6 10
1 Body gesture 4 8
(Below average) (Average) (Excellent)

2 6 10
2 Appearance 4 8
(Casual; Untidy) (Semi Formal; Neat) (Formal; Neat)

2 6 10
3 Voice Quality 4 8
(Inaudible & Muffled) (Audible & Reasonably (Loud & Clear)
Clear)

2 6 10
4 Language 4 8
(Not Fluent) (Reasonably Fluent) (Very Fluent)

2 6 10
Overall Eye
5 4 8
Contact (Little or None) (Some Eye Contact) (Constant Eye
Contact)

2 6 10
Adaptation to
6 4 (Some Attempt to Relate 8
Audience (No Attempt to Relate (Audience Thoroughly
to Audience) to Audience) Involved)

2 6 10
7 Self Confidence 4 8
(Slightly confident) (Somewhat confident) (Extremely confident)

2 10
6
8 Handling 4 8
(Poorly Dealt with (Competently
Questions (Fairly Well Handled)
Audience) Handled)

2 6
10
9 Timing 4 (Reasonably Well 8
(Badly Judged, Too (Precise)
Short /Long) Judged)

2 6 10
10 Overall Effect 4 8
(Very Dull) (Fairly Engaging) (Interesting &
Engaging)

Total 100 marks (Marks to be converted to 20%)

Course Plan of UKTM1013/UBTM1013 Principles of Marketing (Oct 2020) 14

 History of Company & Ownership
• Established in 1993, named Tune Air
• Before 2001, Tune had failed to establish the airline.
• On 2nd December 2001, Tune Air Sdn Bhd was purchased by Tony Fernandes
• In 2001, Tune Air Sdn Bhd becomes Air Asia Sdn Bhd
• July 2010, established Indonesian based in Jakarta
• October 2012, established Thai based in Bangkok
• In 2019, AirAsia won the most affordable and award-winning airline in Asia
• 72-aircraft fleet
• operates 108 daily routes
• more than 400 flights to over 61 domestic and international destinations
 Mission & Vision

Mission Vision
• To be the best organization for • Become Asia's largest low-cost
workers to work for as part of a airline and serve 3 billion people
large family who are poor connectivity
• Build an ASEAN brand
recognized globally
• To get the lowest price so that
everyone with AirAsia can travel
Marketing Environment
of AirAsia
 Economic Environment

• Low flight price

• Oil price

• Pandemic Covid-19
 Technological Environment

• Services

• Websites

• Google Cloud
 Political Environment

Air Operator
Certificate
 Regular
check-up
 Cultural Environment

• Halal foods and drinks

• Wide range of languages

 Competitive Analysis

Firefly

Malindo Air

MASwings
Malaysia Airlines
SWOT
ANALYSIS OF
AIRASIA
Strengths

• Low Cost
Kept operating costs as low as possible

• Service innovation
AirAsia Mobile Application

Features:
- new booking flow & interactive search map
- flight chat rooms (AirAsia Mobile Application)
- boarding passes through the Apple e-wallet

• Local Malaysian food in-flight

Customers can enjoy local Malaysian food in-flight

(Roti Jala, Nasi Lemak and Chicken Rice)

Weakness

• Low Profits

-To maintain its position among low-cost airlines

-Keeps its prices as low as possible
-Difficult to balance service quality with pricing

-Received a lot of complaint

Dissatisfaction of customers:
-seating space
-the seat arrangement
-the uncomfortable with seat legroom (Seat reviews of AirAsia)
-seat recline.
Opportunities

• Cuti-Cuti Malaysia

-"Cuti-Cuti Malaysia" contract

-New Unlimited Pass Cuti-Cuti Malaysia

Prices:
RM399 for unlimited travel around the country
RM499 for unlimited overseas destinations (AirAsia RM399 Unlimited Pass Cuti-Cuti Malaysia)

• Increased in travel to South Asia

South Asia - popular travel area

Examples:
-Singapore
-Malaysia
-Thailand
Threats

• COVID-19 Crisis

-Closure of AirAsia borders in most major markets

-Reduce 22% in total number of passengers (9.85 million)

Net Loss of Asia in 2020:

-First quarter of 31 March, -RM835.55 million
-Second quarter of 30 June, - RM929.89 million

Competitors of AirAsia:
-Thai Airways
-Malaysia Airlines
-Lion Air
-British Airways

(Asian Airline)
AIR
ASIA

OBJECTIVE OF MARKETING STRATEGY

• To be the lowest cost short-haul airline
• To continuously launch new routes under AirAsia
• To develop existing curding range by adding more routes and
frequencies
• To achieve their Philosophy of “Now Everyone Can Fly”
 FAMILY

STUDENTS
FORIGN
WORKERS
TARGET MARKET

TOURIST
BUSINESSMEN
 FULLY UTILIZE INFORMATION
LOW-COST MODELS SUBSTANTIAL COST
TECHNOLOGY
❖ offering air travel SAVINGS
❖ keeping the low
without frills at lower ❖ maintenance
distribution cost
prices was simplified,
❖ utilize e-ticketing and
❖ provision of costly in- spare parts
bypass traditional
flight, overhead cost
travel agents inventory was
COMPETITIVE ADVANTAGE

❖ the aircraft lease

❖ the internet bookings minimized, the
rate, long-term
increased sharply requirement of
maintenance
from 2% in 2002 to facilities and
contracts rates and
50% in 2004
airport rates have equipment were
been negotiated to be decreased
lower
PRODUCTS AND SERVICES PROMOTION MIX
• guest convenience The Big Loyalty Low-cost methods
Sponsoring to the
which are emails and
PRODUCTS • frequent flight Programme
SMS sports team

• increased
• to earn points • to inform and exposure
• ticketless service • The
during each share their
SERVICES • easy payment recognition
transaction customer the new
channels and awards
• to redeem free offerings, their
air tickets during involving Best
travel
next travel Low-Cost
arrangements and Carrier in
related International
information travel
 CHANNEL OF
DISTRIBUTION

• Travelport is the channel of distribution of the AirAsia

• distributing all of its ancillary services and fares
through the Travelport GDS
• started their partnership since 25 March 2014
• involving its unique aggregated shopping functionality
• travel agents are allowing to shop, compare and book
AirAsia
 PRICING STRATEGIES
❖ unlimited flight for a year
❖ flying to domestic and international like
❖ with AirAsia X to Australia, Japan, China,
from Kuala Lumpur to Bangkok,Taiwan,
Korea and India with only RM499 Nett
Langkawi, Hong Kong, and other from RM0
❖ flight booking made at least 14 days
❖ from March 2020 till July 2021
before departure
❖ enjoy the promotions which are limited to
❖ only be bought by all Malaysia-based
regular base fare only
AirAsia BIG members
 BRANDING STRATEGIES

• cost leadership -operational

effectiveness and efficiency
• cost advantages- become Asia’s
leading low-fare airline
business that
own by AirAsia.
Air Asia had invented an airline’s fast-growing travel
portal which is AirAsiaGo.com.
• offers flight service
• discount per booking meals online
• deals on hotels, activities and travel services
promoted
AIR ASIA GROUP
BHD

PROBLEM & SOLUTIONS

 • “Work From Home”
Problem: Pandemic Affect directive
Sales Drop • Retrenchment 10%
employee & 30% salary of
management
• Hire experienced people to
• Covid-19 Pandemic spread improve crisis awareness
around the world
• Revenue drop RM465,926
in first quarter
• Compared first quarter of
2019 & 2020, From
RM2,627,337 to Solution: Cut manpower
RM2,161,411

Problem: Demand of flight ticket fall
1) MCO directive forces everyone not allow
travel.
2) Demand drop 80% in third quarter for
the year compared to 2019
Solution: Engagement of Business Partner
1) Partnership with Taobao, Lazada and
Shopee to enhance frequency of global
logistic.
- Promotion: Free shipping & 20% discount
- 1-week delivery guarantee
2) Develop trade routes, reduce
transportation time
- Strengthen word-of-month
- Create market opportunities