“Friendly People, Friendly Service”

Presented By:
Faheem Ali
Muhammad Hamid
Shakir Altaf
Fahad Masood
 The Aero Asia International commonly known as Aero Asia

 One of the largest private international airline based in Karachi

 Founded in 1993 by Tabani Group of Investors

 Started its operations as domestic and international destinations in Gulf states

 In 2006, the Aero Asia was acquired by the British Regal Group from the Tabani Investors

 The managerial, corporate management issues, and financial problems caused to Aero Asia

led to its suspension by the Civil Aviation Authority (CAA) on 10 May 2007

 Journey from 1993 to 19 May 2007

 http://www.aeroasia.com
 On the domestic front Aero Asia  And internationally to;

operated to;  Doha - Qatar

 Karachi  Muscat - Oman

 Lahore  Abu Dhabi - UAE

 Islamabad  Dubai - UAE

 Faisalabad  Sharjah - UAE

 Multan  Bishkek - Kyrgyzstan

 Peshawar

 Sukkur

 Quetta
 Vision

 Mission

 Objectives/Goals
To be the largest low cost airline in Asia and serving the 3 billion people who are
currently underserved with poor connectivity and high fares.
 “We are in the air transportation business. We provide our customers with a
reliable and pleasant travel experience. We provide our business partners with a
variety of innovative, professional and mutually profitable services. We are a
competent, proactive and diligent team. Our contribution is recognized and
rewarded.”
 Do our job with the highest level of integrity.

 Select contractors, vendors and suppliers who meet our values.

 To achieve revenues in excess of 500 million USD per quarter within the first six
months of flight operations, and exceeding 800 million USD per quarter, by the end
of the first year.

 Embed an ethical culture by maintaining openness with regard to safety and

quality.

 Embed a continuous improvement ethos by learning from aviation industry

experiences.
 Failing to meet safety standards

 Financial issues

 Management issues

 Change of ownership

 Rise of competitors

 Economic situation of Pakistan

 Weak/no marketing campaigns

 Decrease in sales
 AERO ASIA

Relaunching

AERO ASIA
 Vision

 Mission

 Core Values

 Goals
 “Our aims to be the first choice of every passenger travelling from or to Asia”

 To become an air carrier with;

 a continued growth trend over industry average

 zero major accidents/crashes

 sales and distribution costs below industry averages

 “To be Asia’s best airline by making strict compliance for flight safety,
reliability, product line, service quality and competitiveness, being economic and
environment friendly, and maintaining our identity as AERO ASIA with stakeholders
in the mind.”
 Honesty and fair dealing

 Customer satisfaction

 Demonstrating respect to individuals

 Innovation

 Team work

 Leadership

 Confidentiality

 “Open Door” Policy

 We are an equal opportunity employer

 Bring AERO ASIA back into market with proud

 Matching safety standards with Pakistan Civil Aviation Authority (CAA) on regular basis

 Making a strong bond with our customers by providing safe and sound journey

 Offering a reliable service on timely basis and affordability ground

 Keeping an eye on our competitors

 Developing large scale marketing campaigns

 STP Analysis

 SWOT analysis

 Competitive Analysis

 PESTEL Analysis
 Country

 Pakistan, UAE, Oman, Qatar

 Saudi Arabia, Malaysia, Iran, Iraq, Thailand

 Cities

 Islamabad, Karachi, Lahore, Quetta, Faisalabad, Bahawalpur, Rahimyar Khan, Sukkur, Peshawar, Quetta

 Dubai, Bangkok, Doha, Abu Dhabi, Sharjah, Muscat, Riyadh, Tehran, Najaf, Kuala Lumpur

 Density

 Urban Areas, Suburban

 Climate

 Hot climate, southern

 Gender
 Both males and females

 Age
 All age brackets

 Family size
 Every size

 Occupation
 No matter

 Income
 Middle-high income group

 Nationality
 No issue

 Decision Makers
 Lifestyle
 Everyone has different travelling habits based on his lifestyle

 Business travelers , family travelers , religious travelers , etc.

 Personality
 People who want to travel based on their own traits such as business class, economic class
traveling

 Attitude and Belief

 People who want safe and sound journey on timely basis and economic fares

 Interests
 Safe journey, cheap fares, reliable, religious traveling, group traveling, study visits, etc.
 Occasions
 Regular occasion, special, holiday/ seasonal

 User status
 Non user, potential, ex user, first, regular

 User rates
 Light, medium, heavy user

 Loyalty status
 None, medium, strong, absolute

 Attitude towards products

 Enthusiastic, positive, indifferent, negative, hostile
 Used to evaluate the potential and commercial attractiveness of each segment

 Criteria Size
 Large enough to earn get positive IRR. E.g. Customers from 500 to 1000 a day

 Difference
 Economic class - first class, family class and Club class – first class, business class..

 Accessible
 Major cities of Asia, popular places, internet, telephone communication, online ticket, etc

 Focus on different benefits

 Different segments must need different benefits. E.g. family packages, business tourism, loyal and

regular customers
 The goal is to offer something that is bigger, better or more valuable than your

competitors to a particular market segment.

 Creating positive image of the product/service in the hearts and minds of

customers

 Can be done through Tag lines

“Friendly People, Friendly Service”

“You and Us, pride to travel”

 Product

 Price

 Placement

 Promotion

 People

 Physical Evidence

 Process
 Economy Class
 First class

 Family class

 Club Class
 First Class

 Business Class

 Nature of the product:

 Peak Season

 Sales of economic class increases whereas sales of club class decreases

 Off Season

 Due to promotions and discounts sales of both class goes up as per market conditions
 Is the amount of money charged for a product or service.

 Pricing strategies:

 Premium pricing

 Quality oriented people want to buy on high prices

 Penetration pricing

 It is to enter in a market with low prices and building image

 Value based Pricing

 Pricing based on value perceived by customers

 Economic Class Club Class

Round Trip Fares (Rs) Round Trip Fares (Rs)

Karachi - Islamabad 12,500 Karachi - Islamabad 17,500

Karachi - Peshawar 13,500 Karachi - Peshawar 18,500

Karachi - Lahore 12,100 Karachi - Lahore 17,100

Karachi - Quetta 10,150 Karachi - Quetta 15,150

Karachi - Sukkur 4,400 Karachi - Sukkur 9,400

Karachi - Multan 9,300 Karachi - Multan 14,300

Karachi - Faisalabad 11.100 Karachi - Faisalabad 16.100
Karachi - Skardu 15,000 Karachi - Skardu 19,000
Karachi – Sialkot 11,300 Karachi – Sialkot 16,300

 A 5% to 10% increase or decrease when one shifts from economic first class to economic family class and vice versa
 10% to 20% increase or decrease when one shifts from club first class to club business class and vice versa
 Economic Class Club Class

Round Trip Fares (Rs) Round Trip Fares (Rs)

Karachi - Dubai 20,500 Karachi - Dubai 30,500
Karachi - Doha 120,500 Karachi - Doha 150,500
Karachi - Muscat 19,900 Karachi - Muscat 29,900
Karachi - Abu Dhabi 19,150 Karachi - Abu Dhabi 29,300
Karachi - Sharjah 85,400 Karachi - Sharjah 100,800
Karachi - Bangkok 38,300 Karachi - Bangkok 48,300
Karachi - Riyadh 80,100 Karachi - Riyadh 101,000
Karachi - Tehran 30,050 Karachi - Tehran 40,050
Karachi – Najaf 28,300 Karachi – Najaf 38,300
Karachi - Kuala Lumpur 40,000 Karachi - Kuala Lumpur 55,000

 A 8% to 15% increase or decrease when one shifts from economic first class to economic family class and vice versa
 20% to 25% increase or decrease when one shifts from club first class to club business class and vice versa
 Place refers to the physical location of services

 Distribution channels

 Nature of channel
 Direct marketing channels

 Indirect marketing channels

 Number of Intermediaries
 AERO ASIA will use exclusive distribution

 AERO ASIA routes

 Source: Place from where it takeover

 Destination: Place where it is landing

 Advertising have three objectives ;

 To inform

 To persuade

 To remind

 AERO ASIA is using the following Promotion methods;

 Advertising

 Television channels like GEO TV, ARY TV ,Dawn etc.

 Newspapers like Dawn, The News, and Daily Jang etc.

 Online channels like google adsense, facebook, Linkedin, and

Mobile SMS.

 Sales promotion

 Points on each mile, early booking, free AERO cab service,

business trip discount, family packages, etc.
 People define a service - break or make a business

 Two types of people are included in service organizations

which are;
 Service producers

 Administration personnel

 AREO ASIA is specially getting their staff trained in

interpersonal skills and customer service with a focus

towards customer satisfaction
 Physical evidence acts as a differentiator

 Physical environment
 Furnishings, color, layout, seats arrangement, lighting,
LCDs, etc.

 Facilitating goods and services

 Meals during flight and pick drop service for club
class

 Aero Asia is well furnished airline providing

better meals and having better customer service
 Policies and procedures adopted
 Such as radar system, wireless communication etc.

 The degree of mechanization

 Paperless transactions, no frauds are expected

 Operational management
 Operations of AERO ASIA are managed by well-qualified and trained
employees.

 Delivery of service
 We offer a fast delivery, we are time oriented
 Strengths

 Weaknesses

 Opportunities

 Threats
 Aero Asia was the Pakistan’s the best domestic airline

 Easily accessible in targeted markets

 It has highly satisfied customer base

 Their frequently flight program gives the travelers an incentive to become loyal to them

 Low fares

 Financially strong as we are rapidly expanding overseas

 Well trained and skilled lower staff

 Well experienced technical staff

 Lack of skilled people who handle different situations simultaneously

 Raising high amount of funds for our new projects

 Difficulty to attract new customers

 Biggest weakness was that we focused on less advertising.

 Relatively expensive fares than the few competitors

 We also need to provide non Pakistani cuisine as the international

travelers like to eat other food also

 Technologically backward
 High chances of growth due to lack of domestic competitors

 Available under buying power of middle to upper class

 Large number of available markets

 Advanced airplanes and other equipment

 New overseas routes

 E-Booking offering time cuts for businessmen

 Offering Credit Cards to our customers

 Political Instability

 Bad weather

 Economic instability

 Emergence of competitors

 Weak legal system

 Competitors have a better advertising campaign and low fares

 Air blue and Shaheen airways are the biggest threats for Aero Asia which are

technologically advanced.
 Political

 Economic

 Socio-cultural

 Technological

 Environmental

 Legal
 Political
 Better political situation

 Current government is business friendly

 Got stable, as its almost 9th year civil government is here

 However, people from political parties may harm it for kickbacks or personal interest

 Also, our government lack vision

 Economic:
 Its favorable for the company

 Pakistan has 18th largest ‘middle class’ in the world as per a report

 Pakistan’s middle class consists of over 6.27 million people

 Total wealth in Pakistan amounted to $495 billion in 2015 and was $170 billion in 2000, total wealth
in Pakistan has increased at an annualised rate of 7.4% for the last 15 years.
 Socio-cultural:
 Its favorable for the company

 Pakistan’s population is growing at a high growth rate of 1.6%-2.5%

 15–64 years (59.1%) and just 4.2% (65 and over)

 Life expectancy is 63.39 years which is less than developed countries but much better than

underdeveloped countries

 Technological:
 People are technologically advance

 Repair and maintenance service of flights/planes can be done here

 Our engineers can make and run any plane

 We have new modes of advertisement, distribution and communication

 Environmental
 We have lot of raw material

 Cheap labor

 Cheap transportation

 Carbon emission limit

 Favorable weather

 Legal:
 Weak legal system may harm company’s ultimate goal of serving its customers

 Health and safety issues at workplace

 Weak consumer rights and protection to them

 Marketing strategy is a long-term, forward-looking

approach to planning with the fundamental goal

achieving a sustainable competitive advantage
 An advertising strategy is a plan to reach and persuade a

customer to buy a product or a service

 Is to inform people about resumption of AeroAsia services

 Bringing back positive image of AeroAsia,

 Showing it a reliable, secure, time-oriented and economic

 Make it first choice airline service across Pakistan

 Urban and rural audience

 Mostly young along with them their families

 Middle to upper class audience

 Vocational to business travel audience

 Customers who are looking for economic air travel and air cargo services.

 People who are willing to pay more for time oriented and reliable services

 Audience who are fan of cricket

 People who are actually ready to watch live PSL

 Businesses which are looking for economic packages

 Low cost airline travel across Pakistan
 Services across all major cities of Pakistan
 Very punctual in terms of time
 Your own local culture inside airlines
 Low cost hotel stays
 Discount for business travels up to 35%
 Discount for PSL travels up to 30%
 Discount for family tours up to 15%
 Cheap and fast cargo service across the country
 Royalty programs – more you travel, more you earn free tickets, hotel stays and
invites for sports events
 An object Statement:

 Through research we have found that most of airline consumers are the young and they

like cheap flights while still enjoying benefits and their own culture. So, our ad should

convince that our services are reliable, cost-effective and timely operated wrapped

with domestic culture

 A support statement:

 Ad should show our distinctive services to target market and consumer and persuade

them why should they fly with AeroAsia versus other airlines and highlight all the

benefits of AeroAsia that consumers are not getting with other airlines
 A brand character statement:

 Display of advertisement should convey reliability, economic, cultural oriented,

trustful, punctual and first preference for airline consumers.

 Social Media ads:

 We will put more of our budget on social media ads because most

of PSL lovers are on Facebook, twitter, Instagram or LinkedIn.

 Along with that, social media advertisement offers more

customized and targeted advertisement as compared to other

mediums.

 It is estimated that we will be using around 40% of our

advertisement budget on social media advertisement.

 Billboards:

 After social media second most importance ad medium we will be using is

billboards.

 Here we are ready to put around 25% of our advertisement budget.

 These billboards will be placed on major location of all major cities.

 Also, all the billboards will be placed simultaneously across major cities of Pakistan.

 Targeted areas should be main markets and chowks of each city, luxury hotels and

restaurants, airports, air ticket booking agencies and so on.

 Newspapers/magazines:

 Thirdly, we will put our ads on newspapers and magazines.

 This medium will help us to reach those audience who spend

most of their time inside offices or homes.

 As per our strategy we will put around 15% of our budget on

this medium.

 This medium also help us to penetrate in our targeted market.

 Streamers:

 Forth medium that we will be using to reach our

audience will be streamers. These streamers will be

placed along road side across all the major cities of

Pakistan based on our target market. We will be

putting 5% of our advertisement budget on this

medium.
 TV commercials:

 We will also use TV commercials to reach our

target audience.

 We will place only one ad on this medium. Time

slot should be between 8 PM to 9 PM.

 This medium will help us to reach those audience

which spend at least 1 hour from 8PM to 9PM on TV

along with their families.

 We will be using around 10% of our budget on this

medium.
 Direct emails:

 We will also send direct emails to our valuable clients

by getting their permissions.

 Via this medium we will reach our corporate level

audience.

 Formal and customized packages will be send to our

corporate customers based on frequency of their

visits across Pakistan and abroad.

 Loyalty programs:

 We will also offer loyalty programs for our valuable

customers.

 People, families and businesses who use our services

more frequently will be given many benefits like free

hotel stays, our business club membership, discounts,
gifts and free travels.

 Around 5% of our budget will be allocated for this

medium of advertisement.
 In AeroAsia, we will be using “pulsing”

method by which we will air few ads

throughout the year just to inform people

about our services and will do extensive

advertisement during different events like

religious events, seasonal events, games,

vocational events and so on.

 Initially, we will be using national advertising agencies

 We may also reach out regional agency for billboards or

streamers options.

 Services of worldwide advertising platforms like

Facebook, twitter, Instagram, LinkedIn to reach our

online customers.

 But later, we will establish our own decentralized

advertisement department

 In-house agency have its own benefits like cost saving,

more control over flow of information and better

coordination among various departments of AeroAsia.