the flights of malaysia airlines marketing essay

8/21/2019 The Flights of Malaysia Airlines Marketing Essay

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The Flights Of Malaysia Airlines MarketingEssay

Initially, Malayan Airways Limited is incorporated on October 21, 1937 and it has changed its

name several times ntil the partners o! the bsiness decided to be apart and it is renamed

Malaysia Airline "ystem or Malaysia Airlines in 19#7$ %he !lights o! Malaysia Airlines are mostly

operated at its home base in &ala Lmpr International Airport '&LIA( along with its minor hb

located in &ching$ Malaysia Airlines is rnning 11) local rotes within Malaysia and 11# rotes

across the si* ma+or continents in the world$ Its slogan, mission and vision are as !ollows

"logan -oing .eyond /*pectations

Mission %o be a 0onsistently ro!itable Airline

ision %o be the mber One Airline in Asia by 2415

in March), 2412 Malaysia Airlines has introdced a new logo completely in ble color replacing

the previos logo which is consist o! red and ble colors$ Malaysia Airlines has decided to

re!resh its brand image and position themselves as a premim brand in the cstomers6 mind

!eatring its !lagship prodct, the A3)4 airbs$ It has appro*imately 544 seats inclding the

aircra!t sta!! in three classes which are !irst, bsiness and economy class$ Malaysia Airlines is

targeting higher income cstomers by providing otstanding ality o! services with a

reasonable price coordinating with its slogan, 8-oing beyond /*pectations$

Malaysia Airlines is a strong mar:et contender in the "otheast Asia region spported by its

sbsidiaries which are ;ire!ly and MA"cost

leadership strategy is able to get them the large mar:et share despite the ality o! their

services seems in!erior compared to Malaysia Airlines$


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2.0 Malaysia Airline Strategy

Mar:eting strategy is a process that can allow an organi?ation to concentrate its limited

resorces on the greatest opportnities to increase sales and achieve a sstainable competitive

advantage$ %he main goal o! a mar:eting strategy is to satis!y cstomer by implement mar:eting

plan sch as se a low cost prodct to attract cstomers$

Malaysia Airline 'MA"( is a national airline carrier in or contry@ it is a company nder

Malaysian Airlines "ystem .erhad$ Malaysia Airline 'MA"( sed to be one o! Asias !astest

growing airlines$ ;ew years bac:, Malaysia Airlines 'MA"( has reported a massive net loss o!

over BM 1$2) billion in the !orth arter de to heavy !el e*penses and the company is in

crisis$ =owever, MA" believes sstained pro!itability is !easible once it completes all the

initiatives identi!ied in the new bsiness plan, inclding collaboration on several levels with

AirAsia, new partnerships with !oreign carriers which will come as MA" +oins one world and the

spin>o!! o! several non>core bsinesses$

A new bsiness plan aiming to restore pro!itability by signi!icantly ctting capacity andincreasing !ocs on the premim sector, which incldes the lanch o! a new regional premim

carrier, has nveiled by MA"$ MA" has several other sbsidiaries which o!!ers trc:ing,

man!actring o! aircra!t parts and provides cargo transportation services, caters !ood, and

provides landry services !or airlines and other indstrial instittions, and also oversees a travel

agency$

.esides, MA" will begin to !ocs on new premim carrier to international destinations within

"otheast Asia$ %he new premim regional carrier will have a separate management strctre,

allowing it to !ocs on the 8nie needs o! regional premim passengers$ In addition, MA"promises will be o!!ered high !reency services to ensre a convenient schedle !or bsiness

passengers$


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hal trboprop operations, while its parent will !ocs on enhancing its premim !ll>service

o!!ering$ ;ire!ly was a ma+or component o! MA"6 strategy o! having a second bdget brand

which helps the grop to compete against AirAsia in the domestic and regional international

mar:ets$

%he growing demand !or premim short>hal services as income levels in Asia are on the rise

while most o! the growth in Asia in recent years has been at the bdget end o! the mar:et$ %o

!l!ill the satis!action o! the cstomers, MA" also provides an improved regional prodct !or

premim passengers coming o!! its long>hal !lights$ %his may lead to increase in ma+or sales o!

the company by providing premim services to all classes o! the cstomers$

.esides, MA" begins the new partnership with AirAsia to improve its networ: connectivity$ In

this new bsiness plan, both o! the company is sharing the connection prodct on non>

overlapping rotes$ .y implementing this bsiness plan wold bring a big impact on the

revenes side o! MA" which may help to redce the costs o! e*penses$

2.1 Malaysian Airline Problem Statement:

Malaysian airlines 'MA"( sed to be the national pride o! Malaysia$ It symbolisms modernity and

the vision to achieve contines growth and advancement !or or contry$ %he company gain

reptation as an airline that provided good hospitality !or the passengers$ It all seems good !or

MA"@ however MA" :eep s!!ers a lot o! losses and declining revene over the years$

In 2411, MA" recorded a mind>blowing loss o! BM2$52 .illions$ One might say that it is de to

economic downtrn or recession, bt other competitor airlines are actally ma:ing pro!its$

Among the airlines that recorded pro!its is "ingapore Airlines, .ritish Airways and 0athay

paci!ic, all the competitors o! MA" reported a pro!itable year, bt why MA" still recorded sch a

big lossD


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2.1.0 Cases of Marketing Mi! Problems

2.1.1 Pla"e

%he MA" airline web system cased many problems when cstomers are trying to boo: a

tic:et$ "ometime the tic:et price charged is di!!erent with what the cstomers saw when they

want to boo: the tic:et$ %he price o! the tic:et is not the same and the website will say the

original tic:et price is no longer available and the cstomers are as:ed to chec: new price$ %hs

the cstomer will have to pay a higher price compared with what they previosly saw$ According

to yotbe ser E:eahy6 who posted a video to Fotbe on 17th o! March 2411 titled Malaysian

Airline chec:ed the nmbers, I cold have easily gone ahead and boo:ed my !light$ /veryone

shold be care!l$ ote how the !igres change to a higher rate$ And the tiny message saysEOriginal !are was no longer available please chec: new price6$66 =e ploaded the video as an

evidence to prove his claim regarding this matter$

Althogh cstomer have the option whether to contine with the prchase or not, bt it will a!!ect

the credibility o! MA" becase it will lead to perception that MA" is cheating the cstomers$

.esides that, the website also :eeps having other problems$ According to a ser called

E"iangMalam6 who posted in an internet !orm www$ s+$com$my at 7th Gecember 2411, he

claimed that a!ter he :ey>in the credit card nmber and abot to print the itinerary at MA"

website, the webpage sddenly come ot message that say the !are that the cstomer chooseis no longer available and he was as:ed to try boo: the !lights again$

On top o! that, cstomers also always have a hard time when !iling the !orm to boo: the !light

becase sometime the website is not responding or error$ %he time>ot service on the website is

also :eeps appearing$ All this has cased the ser to waste their precios time$ %his is a !ew

e*ample o! the problem encontered by the consmers when boo:ing with MA" website$ %he

problem o! MA" website is cased by the in!ormation technology system !ailre o! MA"

website$ %his is a very serios problem becase it is the cstomer inter>!ace, i! the cstomers

are not satis!ied then they will see: another alternative company when they are boo:ing their!light$ .ecase many o! MA"6s cstomers are bsiness man, ths the time and easy to ma:e

bsiness is very important to them$ "o i! they having di!!iclties in boo:ing a tic:et and it wasted

their time, they will choose another airline the ne*t time they want to travel$ %his leads to

!rstration ths the cstomer vale will decrease$ 0stomer vale is created throgh prodct


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availability, timeliness and consistency o! delivery and ease o! placing orders, and other

elements o! cstomer service '0$ Hohn Langley Mary 0$ =olcomb 1992($

e*t case is MA" is based on e>commerce, and there might have people who do not :now

how to !nction the compter and internet access$ Althogh it is really normal to doing e>

commerce bsiness in this 21st centry, bt yet there are still lots o! people that maybe not

good or even do not :now how to se compter, e*ample li:e senior citi?en$ %here are still

many contries that have limited access to internet or mobile internet technology$ ;or e*ample,

poor and developing contries sch as Myanmar, Laos, ietnam, %imor Leste, "dan, and may

other contries$ %he potential cstomer in those contries may have limitation to internet access

to ma:e the online boo:ing$ %hs MA" might be nable to meet the need o! those potential

mar:ets$

On the other hand, headarter o! MA" is located at "bang airport, bt the main operation o!

MA" is located at &ala Lmpr international airport '&LIA($ %hs, it is hard to the management

to be e!!icient becase the main operating !acilities are located !ar away !rom the =J$ %his

creates many problem especially commnication problem$


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no>!rills airline ths they can give the cstomers lower prices which will attract cstomer$ MA"

nable to o!!er cheap tic:et while obtaining pro!its$


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%he problems !aced by Malaysia Airlines !or promotion is the company does not having the right

promotion to get more people to boo: their !lights on Malaysia Airlines$ Althogh MA" has

o!!ered special promotional deals !or those members and non>members, however the promotion

o!!ered by MA" only served at deals o! the day$


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On top o! that, they also didn6t have any e!!ort to promote the company6s nie selling

proposition$ Althogh the company won many awards !or having an e*cellent service ality !or

the service e*cellent term the Malaysia =ospitality, bt n!ortnately they didn6t do mch

promotion on this$ %his can serve as a claim o! nieness and speriority !or the company,

ths it can create the most power!l testable claims that are hardly to be dplicated by the

competitors in the indstry i! MA" decided to do advertisements and promotion on these$ In

short, MA" are too !ocsed on tactical sales promotion rather than brand bilding$

2.1.$ Pro%"t

Many o! MA" aircra!t are old and not very !el e!!icient sch as .777>#44s$ MA" also have

many di!!erent types o! aircra!t, !or e*ample .777>244s, .777>#44s, .7#7>#44s, .7#7>244s,

A334>344s, A334>244s, .737>#44s and others$ Lately MA" also reired A3)4>)44s plane !or

long distance !light$ Cnli:e AirAsia which only ses one type o! aircra!t which is Airbs A324$


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the same$ MA" need to pt more e!!ort in positioning the prodct speci!ically to target the

bsiness people and travelers instead o! torist$

%he cost o! the seat in bsiness seat is +st a !ew ringgit more than the economy seat bt the

retrns !or the bsiness seat is a lot higher compared with economy seat$ MA" shold redce

their economy seat so they can have more bsiness class and !irst class seat which can be

more pro!itable$

2.1.& Peo'le

%he e!!icient nmber o! sta!! in a company is very important, this is becase the organi?ation

can !nction at its optimm level$ "ta!!ing isses a!!ect mch company, and also MA" s!!ers

!rom sta!! or wor: !orce isse$ 0rrently MA" has arond 24,444 sta!! wor:ing !or MA"$ %his is

a very big problem to MA" becase MA" need to pay monthly salary to the sta!! and also other

allowances$


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MA" always bow down to the demand !rom its eight nions and association that represent the

wor:ers$ MA" shold !ocs on ma:ing decisions that is !or the best interest o! the company$

%here was an interesting ote by Ma* Lcado, he said 8%o lead the orchestra, yo have to trn

yor bac: on the crowd$ MA"6s top management shold ma:e p their mind on !or who they

want to listen to, whether they want to listen to the sta:eholder and concentrate on bilding the

company or bow down to the demand !rom its employee$ Airline$

#.0 (e"ommen%ation

E!ternal O''ortnities )O*

Gi!!erent needs and desire !rom the cstomers in term o! prchasing

-overnment spport

MA" cargo management

Internet availability

.ooming global mar:et and 0hina mar:et

E!ternal Threat )T*
http://www.ukessays.com/essays/disclaimer.php


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0hange in economic will directly a!!ected MA"

%errorism is leading to redce torism con!ident in the airlines

/mergence o! new Asian Airlines

-overnment reglation

Increasing o! !el prices

Increasing brden o! debt

+nternal Strengths)S*

/*cellent service ality

-ood !acilities

-overnment sbsidi?e

/stablished brand

S,O strategies

Mar:et development

"trategic alliances

.rand bilding

More premim seat

.etter asset tili?ation

S,T strategies

Hoint ventre

"peed based strategy

"trengthen brand

Jality assrance

.etter prodcts


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+nternal -eaknesses)-*

rice o!!ered is more e*pensive

Besorces

;ocs global mar:et

;inancial management

B G process

Administrative management

Management team does not :now how to implement the strategies e!!ectively

Overspply o! wor:!orce

-,O strategies

Hoint ventre

B G strategy

Move to other mar:et

/mphasi?e more on developed and growing contry

Bedce the operation cost

-,T strategies

;inancial strategies

Low cost strategies

.etter management team

Introdce a new corporate cltre

%O


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%O


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given sch as more !light to London now de to the Olympic -ames is held in London now and

it will be more demand !rom the cstomers$

Pro%"t

A ality prodct or service provided is one o! the main considerations o! the pblic nowadays$

MA" shold accentate more on research and development and new technologies$ Besearch

and development will help MA" to do more improvement$ MA" can in e*cess o! come with new

strategy and standardi?ations to overcome their wea:nesses$ ;or e*ample, MA" are

prchasing and start the service o! the Airbs 3)4 to provide a more com!ortable and high

ality service to the consmers delighting them with their service$ A better service shold be

provided and a more com!ortable seat shold be o!!er to their cstomers and let their cstomers

have a better e*perience$ "ome development contry which will become a new destination o!

travelling shold be discovered and research shold be condct to more nderstanding o! the

behavior o! consmers and the cltre o! that mar:ets$MA" shold nderstand what is their

need and wants$ %o acire new cstomers is important bt it is more important to remain the

intension o! the cstomers to the company$

Pri"e

;or the price isse, MA" shold redce its strctral and operational costs$ %his will enable

MA" to o!!er lower more competitive !ares when compared to other airlines$ .esides, with

high ality services and prodcts at low !ares, MA" can attract more consmers who wish to

!ly with Malaysia Airlines$ As a reslt, it will generate more revene and cold help in MA"

growth$ Apart !rom that, MA" shold redce the online tic:et pricing to match with other !ll

service airline$ =owever, MA" mst not redce their price ntil they cannot cover bac: their

operational cost$ Other e*ample that is provide discont !or online boo:ing and giving sovenirs

!or those who ma:e online boo:ing can be one o! the alternative to attract more cstomers$ %his

is becase !inancial and high operational cost is always become the main problem !or MA"$ %he

debts o! MA" :eep on increase year by year$ As a reslt, MA" shold !ind ot some sitable


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!inancial strategies to overcome their !inancial problems$ .y implementing the !inancial

strategies, MA" will have more !nds in the !tre which is can e*amine the !inancial

implication, bsiness in!lence and distinctiveness the best economic case o! action$ %he

company shold thin: some ways to save their cost and increase their revene to prevent the

increasing o! debt and operational cost in !tre$

Peo'le

.esides, MA" shold terminate those sta!! which is low prodctivity or low per!ormance to the

company$ A per!ormance evalation shold be condct to motivate their sta!! to wor: harder

and treat the cstomers nicer and !riendly$ I! MA" still employ a hge nmber o! employees, it

may increase the cost o! the company and the cost will trans!er to the brden o! the cstomers$

As a reslt, a training shold be given to those employees remain in the company to increase

their s:ills and ability to solve the problems !ace in providing the services$

Other re"ommen%ations

Meanwhile, MA" shold thin: o! srrogate programmer with other airlines sch as "tar Airlines,

L!thansa, and "ingapore Airlines$ ;or e*ample, alliance between MA" with AirAsia will redce

the 8wasted energy in the aircra!t indstry by competing each others$ %here will bene!it both

companies by giving both company signi!icant cost savings in corporation in maintenance,

cargo, grond handling and aircra!t procrement$ %here!ore, MA" shold corporate with others

competitors to gain more and more :nowledge and redce the competition among them$ .y

wor: together, MA" can more nderstand their competitors and apply a sitable strategic to

overcome the threat !rom their competitors$

$.0 Con"lsion

$.1 Ftre Challenges


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MA" can be !rther improved i! they !igred ot what are their main problems that lead to their

losses in the airline indstry and pt their e!!orts in solving the problems$ /very company does

!ace isses and challenges and !rom there, they :eep moving by providing accrate soltions

that ma:e them to contine sstain in their own indstry$ MA" problems comes almost !rom all

the aspects o! 76s $ %hey need to restrctre their organi?ation in order to :eep srviving$

Gat: Idris Hala saved MA" !rom ban:rptcy in 2445 with his bsiness trnarond plan that

ended p in gaining pro!it till 2449$ %hs the company needs to have a visionary and capable

leader to lead it ot o! dept and sbseently into pro!its$

%he airline indstry6s cycle appear to be closely lin:ed to the world economic climate$


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