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1 Mandala Air Marketing Plan - The Second Life
2 Mandala Air Marketing Plan - The Second Life
Mandala Air Marketing Plan
The Second Life
Mandala Air Marketing Plan - The Second Life3 Mandala Air Marketing Plan - The Second Life3
Overview :
Mandala Air
Situation Analysis :
•Macroeconomic environment
•4 Cs analysis :
Change, Consumer, Competit
or, Company
•SWOT Analysis
Marketing
Segmentation, Target
Market, and
Positioning
Marketing goal and
objectives Marketing Strategies
and Tactics
Resources allocation
and budgets
Controls – progress
measurement and
monitoring
Comprehensive Mandala Air Marketing Plan Framework
Analysis Marketing
Objectives
Marketing
Strategy
Implementation
Action Plan
Evaluation
Consumer Insight
1
2
3
4
5
6
7
8
9
Executive summary
• Mandala Air was once a glorious airline in Indonesia, in January 2011 they
stopped their operation due to bankruptcy.
• Because of the future prospect in Indonesia airline is quite good, Saratoga
Group bought 51% share of the airline, pledged with Tiger Airways 33%.
• Sandiaga Uno, co-founder and chief executive of private equity firm
Saratoga Group and Chin Yau Seng, Tiger’s chief executive, are very
optimistic about the Indonesian market and ready to compete with
established budget airlines
Mandala Air Marketing Plan - The Second Life4
About Mandala Air
Mandala Air Marketing Plan - The Second Life5
April 17, 1969
Established. The founders
were Col. Sofjar, Maj.
Gen. Raden Soerjo, Adil
Aljol, Maj. (Air Force)
Soegandi
Partosoegondo, Kasbi
Indradjanoe and Darwin
Ramli
1
2
5
May 2011
• Tiger Airways acquire a
33 % stake, Saratoga
Group 51 % of Mandala.
• Mandala Airlines focus on
Low Cost Carrier market
Jan 13, 2011
Mandala Airlines
temporarily
stopped flying all
of their fleet due
to debt
problems.
4
June 2012
Rebranding the new Mandala Tiger
Plane Appearance
April 5, 2012
First domestic route, based in
Jakarta and Medan
April 20, 2012
First international destination
when it launches the Medan-
Singapore route.
May 2012
• Mandala created a
special niche among
Indonesia's low-cost
carriers by creating an
image as a safe airline.
3
6
Situation Analysis :
4 Cs Diamond
Mandala Air Marketing Plan - The Second Life6
Economy Soc-Cul
Tech
Market
Pol-Leg
Change
• IT is expand very fast,
Social Media Revolutions
• Internet become very popular
• Social Media
Phenomenon
• People with high
mobility
• The growth of the aviation industry
doubled from Indonesia's economic
growth average 20% -21% per year.
• Low cost carrier (LCC) service more
attractive to suck 80% market share.
•Target of middle-class people of
Indonesia increased by 7 million people
each year.
• Aviation Law.
• The rules on Law No. 1, 2009 on
Aviation,
• Aviation regulation and government
policy
• The increase in aviation fuel prices
Economy Soc-Cul
Tech
Market
Pol-Leg
Change
Situation Analysis :
4 Cs Diamond
Mandala Air Marketing Plan - The Second Life7
Economy Soc-Cul
Tech
Market
Pol-Leg
Change
Situation Analysis :
4 Cs Diamond
Economy Soc-Cul
Tech
Market
Pol-Leg
Change
Customer
• Customer more educated
• Customer have many
choices
• Customer more demanding
and difficult to satisfy.
Company
• Company is value-decider
• The must existing competence
analysis for the company.
• Company have several choices
that is go/invest, no
no/hold, harvest and divest.
Competitor
Macro Economy Indicator Data
Population 240 million
GDP growth (%) 6,5 %
GDP per capita (US $) 3600
Exchange rate per US$ 8500
Poverty Number 14,6%
Macro Economy Indicator Data
Net Capital Inflows (Million) 22.64
Increase Economic Growth 7 %
Indonesia’s Income Per capita
prediction 2030 (US$)
10,000
Economic Growth ASEAN 6,9%
Macro Economic
Mandala Air Marketing Plan - The Second Life8
The Fourth Cluster Driving Growth : food and beverages industry, Textiles, textile products, and footwear
industry, electronics and electronic components industry, and transportation equipments and automotive
components industry.
Competitor Analysis
Mandala Air Marketing Plan - The Second Life9
Airlines
in average
Competitor Analysis
Existing Airline Value Curve
Price Food Lounge Choices
of Seat
Class
Hub
Connecti
vity
Low
Price
Fast Departure
from Cities
Comfort
able
Baggage
Included with
Ticket Price
Airlines
in average
v
Market Share
Mandala Air Marketing Plan - The Second Life11
Airline Frequency
share
Capacity share Domestic routes
Lion Air 38.9% 45.5% 92
Garuda
Indonesia
20.9% 21.6% 38
Batavia 12.7% 10.7% 55
Sriwijaya Air 9.8% 8.8% 39
Merpati
Nusantara
7.4% 5.9% 41
Mandala
Airlines
3.0% 3.0% 17
Indonesia AirAsia 1.6% 1.8% 6
Source: OAG Max Online for w/c 10 January 2011
SWOT Matrix Analysis
Strength
• Shares own Mandala Saratoga
Capital (51%), Tiger Airways
(33%), concurrent credit 15%, and
the old shareholders Cardig and
Indigo (1%)
• Safe and reliable flights
Weaknesses
• Service resource is limited by
lower costs Limited human
resources Situation.
• Brand is vital for market
position and developing it is
always a challenge
• Mandala routes are limited.
Opportunities
• The growth of the aviation industry
average of 20% -21% per year.
• Service low cost carrier (LCC) more
attractive to suck 80% market share.
• Increased tourism sector
Treats
• High fuel price decreases yield
• Aviation regulation and government policy
• The increase of in the customer's
requirements of higher-quality products /
services
Mandala Air Marketing Plan - The Second Life12
Strength/ opportunities (SO)
• Increase Market Share
• Increase Sale & Revenue
• Expand current customer rewards
program to build customer loyalty.
Weaknesses/ opportunities
(WO)
• Build Strong Mandala Brand
• Increase the Route
• Focus on service, speed and
departure point-to-point.
Strength/ Treats (ST)
• Expand brand recognition as top
low-cost air carrier
• Focus on the importance of
safety, security, and service.
• Offer the most competitive price
Weaknesses/ Treats (WT)
• Increase load capacity
• Initiate employee rewards
program for productivity
and customer retention.
• Create expanded strategy
Mandala Air Consumer Insight
Mandala Air Marketing Plan - The Second Life13
3% 5% 5%
8%
11%
13%
18%
37%
Korea
London
Philipine
Australia
Hongkong
Bangkok
Kuala Lumpur
Singapore
5%
5%
5%
5%
4%
4%
4%
4%
4%
7%9%
9%
9%
13%
13%
Balikpapan
Banjarmasin
Jambi
Jayapura
Lampung
Singkawang
Solo
Tanjung Putting
Lombok
Sampit
Denpasar
Makasar
Semarang
Surabaya
Yogyakarta
Within a
year, have you
ever
travel?
Customer’s Profile
29%
36%
14%
21%
1-3 time/year
4-8 time/year8-12 time/year
>12 time/year
Domestic Destination
International Destination
100%
YES
How many times
a year do you
travel?
What was your
destination?
1 2
3
Airplane
100%
Airplane
79%
Mandala Air Marketing Plan - The Second Life
Airline’s Profile
What kind of
transportation do
you use?
For Domestic
Destination
International
Destination
1
Mandala Air Marketing Plan - The Second Life
Airline’s Profile
3% 3% 3%
5%
13%
13%
30%
30%
Batavia Air
Kalstar
Singapore Airlines
Sriwijaya
Lion
Mandala
Garuda
Air Asia
What airlines do you use to travel?
Why do you use this airlines?
79 % because of the Price
75 % because of the promo
65% because of the Route Hub
57% because of the airlines provide food
57 % because of the punctual time
25% because of the comfort
8 % because of the Lounge availability
Yes
39%
No
46%
I don’t
Care
15%
Do you aware about the type of the
plane? (ex. Airbuss, boeing etc)
Where do you Buy the tickets?
71% Online | 29% Travel Agent
Airplane
100 %
2
3
4
5
Mandala’s Brand Awareness
Yes
100 %
Have you heard
about Mandala
Air?
No
25%
Yes
75%
Have you flight using Mandala Air?
69% Yes | 31% No
18% Good Service
18% Good Pilot (Landing)
14% Easy & quick to do reservation online
14% Clean and Comfort
16% Fare Price
14% Punctual
Why?
Have you flight using Tiger Air?
36% Yes | 64% No
25% Service Not Good
18% Using old Plane
18% Bad Interior
12% Bad Turbulence
Why?
17% Cheap Price
6% Good Service
Are you aware that now Mandala is
operating again?
Netnography
Mandala Air Marketing Plan - The Second Life18
The Power of STP to Win
The Mind Share…
Marketing Strategy & Competitive Positioning
Mandala Air Marketing Plan - The Second Life20
 Travelers
 Promo Lovers
 Shopaholic
 Value Added
Seeker
Value Added
Seeker
Low
Price –
High
Value
Segmentation Targeting Positioning
Marketing Goals & Objectives
Mandala Air Marketing Plan - The Second Life21
Communicate
the New
Mandala Values
and Commitment
Build a strong
Mandala
Brand
Open new
route with
lower costs
Increase
Market Share
Increase
Sales &
Revenue
Create
Mandala New
Experience
Marketing Mix 4 Cs Strategies and Tactics
Mandala Air Marketing Plan - The Second Life22
Set the price to be
affordable. Below
Full Service and
average Low Cost
Carrier Airways.
Open New Route,
• new route
• Full Service Route
Travel
Agent, Online, Smart
phone Application
360 degree
Communication
Cost Consumer Convenient Communication
consumer
Mandala Air Marketing Plan - The Second Life23
Model
Primarily point-to-point routes
Locations
Mandala operated scheduled services to
3 international and 17 domestic destinations
Focus Cities
Daily flight between Jakarta and Medan.
International destination : Kuala Lumpur in Malaysia & Medan-
Singapore.
Indonesia : Jakarta - Soekarno-Hatta International Airport [Hub];
Medan - Polonia International Airport
Singapore : Singapore Changi Airport
Malaysia : Kuala Lumpur – Kuala Lumpur International Airport
Other routes that have been approved include Jakarta-Singapore
and Singapore-Denpasar (Bali)-Jakarta.
Terminated destinations
Hong Kong - Hong Kong
Indonesia -
Balikpapan, Banjarmasin, Batam, Bengkulu, Denpasar/Bali, Jambi, K
upang, Padang, Pangkal
Pinang, Pekanbaru, Semarang, Surabaya, Tarakan, Yogyakarta.
Macau - Macau
Average Stage Length : 5 hours
Consumer New Route
Mandala Air Marketing Plan - The Second Life24
New Route
• Medan –
Singapore – Raja
Ampat/Wakatobi
Full Service
Airlines Route
• Medan – Bali
Not Favorite
Route
• Medan - Maluku
Situational AnalysisStrategy Clock (Pricing Strategy)
In-flight service
– Mandala Airlines is give choices of seats class service airline. It had a buy on board service offering food and beverages for
purchase by passengers, but no in-flight entertainment. Seats were reserved and allocated during check-in. Free in-flight
magazines or newspapers and blanket were provided during flight.
– Mandala Airlines had a baggage are included in the flight price about 20 kilos. Priority passengers also benefit from better
seat locations (at the front of the aircraft), free lounge access and free food and beverages (both in lounges and during
flight).[
• Ancillary Fees :
Reservation
changes, baggage
limitations, frequent flyer
point sales, concession
Convenient (Ticketing Strategy)
Mandala web site
website for customers
to book and pay for
tickets electronically.
Mandala Bye-Pass®
airport self-service
kiosks
Mobile Web program
Travel agency web sites
(e.g.
Travelocity, Expedia)
Corporate booking
agencies
Traditional travel
agencies
In line with current
airline practice, Mandala
Airlines utilized an
electronic ticketing and
an e-payment system.
The airline had a 24-
hour call center
Mandala T.T.M
Ticket Teller Machine
Mandala Air Marketing Plan - The Second Life26
Mandala Air Marketing Plan - The Second Life27
Marketing and Brand Position
Mandala Air Marketing Plan - The Second Life28
Customer
Leadership
Clarification
Core Area
Marketing
Vision
Mandala Air = “LCC Airline” Icon
Marketing Expertise & Organization
Product
Leadership
Maximize Marketing Efficiency
Brand
Leadership
Premium
Brand Strategy Platform...
Brand Target
Value Added Seeker
Brand Essence
Everyone already fly
Brand Positioning
Low Price – High Value
Brand Personality
Active, Dynamic, Modern
Airlines
in average
Price Food Lounge Choices
of Seat
Class
Hub
Connecti
vity
Low
Price
Fast Departure
from Cities
Comfort
able
Baggage
Included with
Ticket Price
v
NEW
The differentiations of
Mandala Air than the
competitor…
Mandala Value Curve Proposed
Co creation
Mandala Experience
Mandala Check and Go
Conversation
Mandala lovers
Communal Activation
• Mandala Lovers’ Near You!
• Mandala Lovers’ with You!
• Mandala Lovers’ with Community
Campaign
Recent "All You Can
Fly" promotions
allowed consumers to
buy a monthly pass for
unlimited travel to
Mandala destinations.
Mandala believes half
of the buyers had not
flown them before.
All
you
can
Fly
Local Campaign
Where
can Fly
Global Campaign
Education &
Awareness
Product
Experience
Credibility/
Image
Relationship
Media Gathering
PR Activities
 Mandala
Tiger Air
“We’re
Back”
Exhibition
 Mandala
Tiger Air
Mobile
Booth
 Advertisement,
 TVC @
Commercials TV
and Youtube
Active at
Social
Media, M
andala
Tiger Air
Mail List Developing
affiliate
relationships
with banks
Sales :
Number
of Sales
and Profit
Brand
Equity :
Mandala
Tiger Air
AllyoucanFly
Sales :
Number
of Sales
and
Profit
Brand
Equity :
Mandala
Tiger Air
360 degree Communication
The following table describes how Mandala's marketing program supports
its brand position.
Mandala Air Marketing Plan - The Second Life34
Alternative Recommendation
 Social Media
 Website
 Mandala Lovers
 Continue to Stress
Differentiation
 Leverage Integrated Customer
Service System
 Target Price Sensitive Customer
 Brand Ambasador
Mandala Air Marketing Plan - The Second Life35 Mandala Air Marketing Plan - The Second Life35
Period
Controls – progress measurement and monitoring
Mandala Air’s Marketing Performance
Mandala Air Marketing Plan - The Second Life36
thanks…
Appendix
Mandala Air Marketing Plan - The Second Life37
Change
Mandala Air Marketing Plan - The Second Life38
Economy Soc-Cul
Tech
Market
Pol-Leg
• IT is expand very fast,
especially in communication
• Social Media Revolutions
• Internet become very popular
• Expand the technology of the
website (i.e. iPhone apps, etc.)
• Social Media Phenomenon
• People mobility is increase
• The growth of the aviation industry doubled from Indonesia's economic growth average 20% -21% per year.
• Low cost carrier (LCC) service more attractive to suck 80% market share.
• Domestic aviation market still needs a lot of planes, at least up to 1,000 units considering Indonesia is an archipelago, while from the
side of the plane is still defeated by India, China, even Singapore.
• Target of middle-class people of Indonesia increased by 7 million people each year.
• We have a lot of business sectors that depend on the airline business, such as the tourism sector.
• There are 60 million passengers by 2015 and 75 million by 2020. This opportunity is a good market for Mandala with the concept of
low cost carrier.
• Foreign airlines took the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in
Indonesia.
• Aviation Law. Airlines or foreign
investor will still be able to build the
airline in Indonesia, as long as the
majority of shares held by local
investors.
• The rules on Law No. 1, 2009 on
Aviation, the aviation world
investment of at least 50 million
U.S. dollars is very burdensome and
threatening local investors.
• Aviation regulation and
government policy
• The increase in aviation fuel prices
Competitor
Mandala Air Marketing Plan - The Second Life39
• When the Asean Open Sky enacted in 2015, the national airline
to compete with the airlines.
• Six airlines So Tight Competitors in Asean Open Sky. Three-in-
class airline services is a full service Singapore Airlines, Thai
Airways, Malaysia Airlines, while three other carriers in the class
cost (low cost carrier / LCC) is AirAsia, Tiger Airways and Jetstar
Airways.
• Long haul flight is an trial to get undeveloped market share
• Differentiation from traditional LCC model by adding customer
services or operation as full service airline with low fare
• Ongoing industry consolidation has opened up prospects for
new routes and airport deals
• Full service airlines start cut costs to compete
• Entrance of other LCCs
• Increase in operation cost in producing value-added services
• System disruption due to heavily reliance on online sales
• The increase in customer’s requirements of higher-quality
products/services
Customer
Mandala Air Marketing Plan - The Second Life40
• Customer more educated and have
many information to take decision.
• Customer have many choices
• Customer more demanding and
difficult to satisfy.
• Customer loyalty is decrease because
a lot of promotion that offer more
benefits.
• Customer tend to have more than one
mobile phone
• Price- oriented segment is very
big, but have low buying power.
Company
Mandala Air Marketing Plan - The Second Life41
• Company is value-decider
• The others 3C’s must be learned to
see the effect to campany.
• The must existing competence
analysis for the company.
• Base on the existing
competence, take the stretch
possibilities.
• Company have several choices that
is go/invest, no no/hold, harvest and
divest.
• To decided the choice, depend on
company risk attitude
Competitor Analysis 4P’s
Mandala Air Lion Air Sriwijaya Air Air Asia Merpati
Nusantara
Airlines
Batavia Air Citilink
PT Saratoga Investment Group
(51%), Tiger
Airways(33%), Kreditur dan
pemegang saham lama (16%)
PT Lion
Mentari
Airlines
PT. Sriwijaya Air PT. Indonesia
AirAsia.
PT. Metro Batavia
Presiden
Direktur
Diono Nurjadin Rusdi Kirana Chandra Lie Sardjono Jhony
Tjitrokusumo
Joseph Saul
Mulai
Beroperasi
17 April 1969, Berenti beroperasi
10 Januari 2011 – 4 April 2012
19 Oktober
1999
2003 6 September
1962
5 Januari 2002 8 Agustus 2008
Aliansi Tiger Airways Wings Air -
Slogan Partner Airlines of Tiger Airways We make
people fly
Enjoy Simplicity
Jenis Kelas Bisnis
Ekonomi
-
Program
Frequent Flier
Lion Pasport
Club
- Merpati
EasyFlyer
Lounge
Penumpang
Mandala Priority Lion King
Lounge
-
Website www.mandalaair.com www.lionair.c
o.id
www.sriwijayaair
.co.id
www.merpati.co.
id
www.batavia-air.co.id
Facebook
#fans
Merpati airlines #
2.432
Twitter
#followers
@mandalaair #8.917
@tigerairways #11.467
@tigerairwayssg #14.280
@lionairliners
# 2.384
@SriwijayaairSJ
#2.703
@Sriwijayaair
#1.200
@airasiaid
#147.745
@merpati_info #
5.011
@bataviaair #3.242 @citilink #18.154
Twitter tweets @mandalaair #632
@tigerairways #352
@tigerairwayssg #1.063
0 @SriwijayaairSJ
#18
@Sriwijayaair #2
30.929 6.330 28 8.147
Youtube Citilink
Jumlah
Armada
11 72 29 33
Kota Tujuan 16 61 36 87
Mandala Air Marketing Plan - The Second Life42
Price
Booking
24 April
2012
(7 – 14
Mei) -
pagi
Mandala
Air
Lion Air Sriwijaya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink
Jakarta –
Denpasar
Prom
o
Rp.
401.000;
Promo Rp.
500.000;
Promo n/a Promo Rp.
379.000;
Eco Promo 0 Rp.
399.090;
Ekono
mi
Rp.
643.000;
Ekonomi Rp.
530.000;
Regule
r
Rp.
443.90
0;
Flexi Rp.
588.000;
Eco Budget Rp. 716.900;
Busin
ess
n/a Business n/a Ekonomi Rp.
698.000;
Eco
Medium
Rp. 886.900;
Business - Eco
Premium
Rp.
1.266.900;
Denpasar
- Jakarta
Prom
o
Rp.
544.000;
Promo Rp.
460.000;
Promo n/a Promo n/a Eco Promo 0 Rp.
399.090;
Ekono
mi
Rp.
643.000;
Ekonomi Rp.
530.000;
Regule
r
Rp.
443.90
0;
Flexi n/a Eco Budget Rp. 556.900;
Busin
ess
n/a Business n/a Ekonomi Rp.
918.000;
Eco
Medium
Rp. 886.900;
Business - Eco
Premium
Rp.
1.266.900;
Mandala Air Marketing Plan - The Second Life43
Place
Reserva
tion by
Mandal
a Air
Lion Air
Sriwijay
a Air
Air Asia
Merpati
Nusanta
ra
Airlines
Batavia
Air
Citilink
Website
(online)
v v v v v v v
Travel
Agency
v
Airport
Phone
(call
centre)
V v v
Mobile
Kantor
Pusat
V
Mandala Air Marketing Plan - The Second Life44
Promotion
Manda
la Air
Lion Air
Sriwija
ya Air
Air Asia
Merpati
Nusantara
Airlines
Batavia
Air
Citilink
Online
Promot
ion
Visa
epaymen
t
Bca
Visa
Bank
bri
Bni
Bii
Bank
sumsel
Visa
master
Visa
Mandiri
OCBC
NISP
Klik Bca
BCA
Mandiri
NMO
Visa
Master
Paypal
Discover
American
Express
Mandala Air Marketing Plan - The Second Life45
Service
Mandala Air Lion Air Sriwijaya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink
Booking v v v v
My Flight v v v
Flight Info v v v
Hotels & Tours v v
Travel Info v v v
Loyalty Program v v v v
Courier v
Cargo v
Entertainment v
Online Shopping v v
Credit Card v
Savers Account v
Corporate v v
Promosi v v v
Webbanner v v v
services v v
experience v
car v
asuransi v
Quick links v
Web check in v
At the airport v
Mandala Air Marketing Plan - The Second Life46
Situational Analysis
Ansoff Matrix
Products
Existing New
Markets
Existing
Market Penetration/Consolidation
1
4
Product Development
2
5
New
Market Development
3
Diversification
Situational Analysis
• Strategy Clock (Pricing Strategy)
SWOT Matrix Analysis
Strength
1. Shares owned Mandala Saratoga Capital (51%), Tiger Airways (33%),
concurrent credit of 15%, and the old shareholders Cardig and Indigo (1%).
2. Tiger Sandiaga and prepare capital of U.S. $ 250 million.
3. Tiger Airways business model adopted.
4. Low-cost airline
5. Mandala operated scheduled services to three international and 17
domestic destinations, used a narrow-body fleet of Airbuses.
6. The name Mandala is not changed
7. Safe and reliable flights
8. Tiger Airways, together with its associated airlines, operates a fleet of 32
Airbus A320 aircraft
Weaknesses
1. Service resource is limited by lower costs Limited human
resources Situation Could not handle irregular.
2. Government interference and regulation on airport deals and
passenger compensation.
3. Non-central location of secondary airports.
4. Brand is vital for market position and developing it is always a
challenge
5. Heavy reliance on outsourcing
6. New entrants to Provide the price-sensitive services
7. Mandala is still not a good name in the public eye since 2011 had
been frozen.
8. The plane is still not much
9. Mandala routes are limited.
10. Other companies using the LCC business model too.
11. New Mandala will penetrate the Jakarta-Medan route. As for the
international flights will start from Jakarta to Kuala Lumpur,
Malaysia.
Opportunities
A. The growth of the aviation industry average of 20% -21% per year.
2. Long haul flight to get your trial is an undeveloped market share
3. Differentiation from traditional LCC models by adding customer services or as full-service operation
with a low fare airline
4. Ongoing industry consolidation has opened up prospects for new routes and airport deals
5. High fuel prices will squeeze out unprofitable competitors
6. Service low cost carrier (LCC) more attractive to suck 80% market share.
7. 16 domestic routes and four international routes
8. Target the middle class 7 million people each year.
9. Increased tourism sector
10. 60 million passengers by 2015 and 75 million by 2020.
11. Mandala will operate 10 Airbus A320 aircraft.
12. Aviation Law. Airlines or foreign investment will still be able to build the airline in Indonesia, as long
as the majority of shares held by local investors.
13. Expand the technology of the website (ie iPhone apps, etc.)
Strength/ opportunities (SO)
1. Increase Market Share
2. Increase Sale & Revenue
3. Expand current customer rewards program to build
customer loyalty.
4. Expand freight air portion into former Tiger Airway
and Local areas
5. Mandala Airlines utilized an electronic ticketing and an
e-payment system. The airline had a 24-hour call
center and a website for customers to book and pay
for tickets electronically
Weaknesses/ opportunities (WO)
1. Build Strong Mandala Brand
2. Increase number of pesawat
3. addition Route
4. Improve efficiency through the use of aircraft
Airbuss
5. Focus on service, speed and departure point-
to-point.
Treats
1. Full service airlines cut costs start to Compete
2. Entrance of other LCCs
3. High fuel price decreases yield
4. Accident, terrorist attack, and disaster and affect customer confidence
5. Aviation regulation and government policy
6. Increase in operation cost in producing value-added services
7. System Disruption due to Heavily reliance on online sales
8. Asean Open Sky enacted in 2015
9. Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways, Malaysia
Airlines, AirAsia, Tiger Airways and Jetstar Airways.
10. The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least 50 million
U.S. dollars is very burdensome and threatening local investors.
11. Foreign airlines also eyeing the market potential of Indonesia, foreign investment in Indonesia will be
the toughest rival for local airlines in Indonesia.
12. The increase of in aviation fuel prices
13. The increase of in the customer's requirements of higher-quality products / services
14. Tiger Airways Mandala proposed name is replaced with the name Tiger.
Strength/ Treats (ST)
1. Expand brand recognition as top low-cost
air carrier to eliminate competition.
2. Retain low-cost operating strategy to
remain competitive.
3. Focus on the importance of safety,
security, and service.
4. Focus on the timeliness
5. Offer the most competitive price
Weaknesses/ Treats (WT)
1. Increase load capacity to get
2. maximum value out of jet fuel.
3. Initiate employee rewards program
for productivity and customer
retention.
4. Create expanded strategy and
growth plan to thwart competition.
5. Reduce the cost of jet fuel that will
decrease operational costs
Mandala Air Marketing Plan - The Second Life49
Mandala Air Marketing Plan - The Second Life50
Netnography (3)
Mandala Air Marketing Plan - The Second Life51
Netnography (3)

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Marketing Strategy/ Strategi Pemasaran - Mandala-Tiger Airline

  • 1. 1 Mandala Air Marketing Plan - The Second Life
  • 2. 2 Mandala Air Marketing Plan - The Second Life Mandala Air Marketing Plan The Second Life
  • 3. Mandala Air Marketing Plan - The Second Life3 Mandala Air Marketing Plan - The Second Life3 Overview : Mandala Air Situation Analysis : •Macroeconomic environment •4 Cs analysis : Change, Consumer, Competit or, Company •SWOT Analysis Marketing Segmentation, Target Market, and Positioning Marketing goal and objectives Marketing Strategies and Tactics Resources allocation and budgets Controls – progress measurement and monitoring Comprehensive Mandala Air Marketing Plan Framework Analysis Marketing Objectives Marketing Strategy Implementation Action Plan Evaluation Consumer Insight 1 2 3 4 5 6 7 8 9
  • 4. Executive summary • Mandala Air was once a glorious airline in Indonesia, in January 2011 they stopped their operation due to bankruptcy. • Because of the future prospect in Indonesia airline is quite good, Saratoga Group bought 51% share of the airline, pledged with Tiger Airways 33%. • Sandiaga Uno, co-founder and chief executive of private equity firm Saratoga Group and Chin Yau Seng, Tiger’s chief executive, are very optimistic about the Indonesian market and ready to compete with established budget airlines Mandala Air Marketing Plan - The Second Life4
  • 5. About Mandala Air Mandala Air Marketing Plan - The Second Life5 April 17, 1969 Established. The founders were Col. Sofjar, Maj. Gen. Raden Soerjo, Adil Aljol, Maj. (Air Force) Soegandi Partosoegondo, Kasbi Indradjanoe and Darwin Ramli 1 2 5 May 2011 • Tiger Airways acquire a 33 % stake, Saratoga Group 51 % of Mandala. • Mandala Airlines focus on Low Cost Carrier market Jan 13, 2011 Mandala Airlines temporarily stopped flying all of their fleet due to debt problems. 4 June 2012 Rebranding the new Mandala Tiger Plane Appearance April 5, 2012 First domestic route, based in Jakarta and Medan April 20, 2012 First international destination when it launches the Medan- Singapore route. May 2012 • Mandala created a special niche among Indonesia's low-cost carriers by creating an image as a safe airline. 3 6
  • 6. Situation Analysis : 4 Cs Diamond Mandala Air Marketing Plan - The Second Life6 Economy Soc-Cul Tech Market Pol-Leg Change • IT is expand very fast, Social Media Revolutions • Internet become very popular • Social Media Phenomenon • People with high mobility • The growth of the aviation industry doubled from Indonesia's economic growth average 20% -21% per year. • Low cost carrier (LCC) service more attractive to suck 80% market share. •Target of middle-class people of Indonesia increased by 7 million people each year. • Aviation Law. • The rules on Law No. 1, 2009 on Aviation, • Aviation regulation and government policy • The increase in aviation fuel prices Economy Soc-Cul Tech Market Pol-Leg Change
  • 7. Situation Analysis : 4 Cs Diamond Mandala Air Marketing Plan - The Second Life7 Economy Soc-Cul Tech Market Pol-Leg Change Situation Analysis : 4 Cs Diamond Economy Soc-Cul Tech Market Pol-Leg Change Customer • Customer more educated • Customer have many choices • Customer more demanding and difficult to satisfy. Company • Company is value-decider • The must existing competence analysis for the company. • Company have several choices that is go/invest, no no/hold, harvest and divest. Competitor
  • 8. Macro Economy Indicator Data Population 240 million GDP growth (%) 6,5 % GDP per capita (US $) 3600 Exchange rate per US$ 8500 Poverty Number 14,6% Macro Economy Indicator Data Net Capital Inflows (Million) 22.64 Increase Economic Growth 7 % Indonesia’s Income Per capita prediction 2030 (US$) 10,000 Economic Growth ASEAN 6,9% Macro Economic Mandala Air Marketing Plan - The Second Life8 The Fourth Cluster Driving Growth : food and beverages industry, Textiles, textile products, and footwear industry, electronics and electronic components industry, and transportation equipments and automotive components industry.
  • 9. Competitor Analysis Mandala Air Marketing Plan - The Second Life9
  • 10. Airlines in average Competitor Analysis Existing Airline Value Curve Price Food Lounge Choices of Seat Class Hub Connecti vity Low Price Fast Departure from Cities Comfort able Baggage Included with Ticket Price Airlines in average v
  • 11. Market Share Mandala Air Marketing Plan - The Second Life11 Airline Frequency share Capacity share Domestic routes Lion Air 38.9% 45.5% 92 Garuda Indonesia 20.9% 21.6% 38 Batavia 12.7% 10.7% 55 Sriwijaya Air 9.8% 8.8% 39 Merpati Nusantara 7.4% 5.9% 41 Mandala Airlines 3.0% 3.0% 17 Indonesia AirAsia 1.6% 1.8% 6 Source: OAG Max Online for w/c 10 January 2011
  • 12. SWOT Matrix Analysis Strength • Shares own Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit 15%, and the old shareholders Cardig and Indigo (1%) • Safe and reliable flights Weaknesses • Service resource is limited by lower costs Limited human resources Situation. • Brand is vital for market position and developing it is always a challenge • Mandala routes are limited. Opportunities • The growth of the aviation industry average of 20% -21% per year. • Service low cost carrier (LCC) more attractive to suck 80% market share. • Increased tourism sector Treats • High fuel price decreases yield • Aviation regulation and government policy • The increase of in the customer's requirements of higher-quality products / services Mandala Air Marketing Plan - The Second Life12 Strength/ opportunities (SO) • Increase Market Share • Increase Sale & Revenue • Expand current customer rewards program to build customer loyalty. Weaknesses/ opportunities (WO) • Build Strong Mandala Brand • Increase the Route • Focus on service, speed and departure point-to-point. Strength/ Treats (ST) • Expand brand recognition as top low-cost air carrier • Focus on the importance of safety, security, and service. • Offer the most competitive price Weaknesses/ Treats (WT) • Increase load capacity • Initiate employee rewards program for productivity and customer retention. • Create expanded strategy
  • 13. Mandala Air Consumer Insight Mandala Air Marketing Plan - The Second Life13
  • 14. 3% 5% 5% 8% 11% 13% 18% 37% Korea London Philipine Australia Hongkong Bangkok Kuala Lumpur Singapore 5% 5% 5% 5% 4% 4% 4% 4% 4% 7%9% 9% 9% 13% 13% Balikpapan Banjarmasin Jambi Jayapura Lampung Singkawang Solo Tanjung Putting Lombok Sampit Denpasar Makasar Semarang Surabaya Yogyakarta Within a year, have you ever travel? Customer’s Profile 29% 36% 14% 21% 1-3 time/year 4-8 time/year8-12 time/year >12 time/year Domestic Destination International Destination 100% YES How many times a year do you travel? What was your destination? 1 2 3
  • 15. Airplane 100% Airplane 79% Mandala Air Marketing Plan - The Second Life Airline’s Profile What kind of transportation do you use? For Domestic Destination International Destination 1
  • 16. Mandala Air Marketing Plan - The Second Life Airline’s Profile 3% 3% 3% 5% 13% 13% 30% 30% Batavia Air Kalstar Singapore Airlines Sriwijaya Lion Mandala Garuda Air Asia What airlines do you use to travel? Why do you use this airlines? 79 % because of the Price 75 % because of the promo 65% because of the Route Hub 57% because of the airlines provide food 57 % because of the punctual time 25% because of the comfort 8 % because of the Lounge availability Yes 39% No 46% I don’t Care 15% Do you aware about the type of the plane? (ex. Airbuss, boeing etc) Where do you Buy the tickets? 71% Online | 29% Travel Agent Airplane 100 % 2 3 4 5
  • 17. Mandala’s Brand Awareness Yes 100 % Have you heard about Mandala Air? No 25% Yes 75% Have you flight using Mandala Air? 69% Yes | 31% No 18% Good Service 18% Good Pilot (Landing) 14% Easy & quick to do reservation online 14% Clean and Comfort 16% Fare Price 14% Punctual Why? Have you flight using Tiger Air? 36% Yes | 64% No 25% Service Not Good 18% Using old Plane 18% Bad Interior 12% Bad Turbulence Why? 17% Cheap Price 6% Good Service Are you aware that now Mandala is operating again?
  • 18. Netnography Mandala Air Marketing Plan - The Second Life18
  • 19. The Power of STP to Win The Mind Share…
  • 20. Marketing Strategy & Competitive Positioning Mandala Air Marketing Plan - The Second Life20  Travelers  Promo Lovers  Shopaholic  Value Added Seeker Value Added Seeker Low Price – High Value Segmentation Targeting Positioning
  • 21. Marketing Goals & Objectives Mandala Air Marketing Plan - The Second Life21 Communicate the New Mandala Values and Commitment Build a strong Mandala Brand Open new route with lower costs Increase Market Share Increase Sales & Revenue Create Mandala New Experience
  • 22. Marketing Mix 4 Cs Strategies and Tactics Mandala Air Marketing Plan - The Second Life22 Set the price to be affordable. Below Full Service and average Low Cost Carrier Airways. Open New Route, • new route • Full Service Route Travel Agent, Online, Smart phone Application 360 degree Communication Cost Consumer Convenient Communication
  • 23. consumer Mandala Air Marketing Plan - The Second Life23 Model Primarily point-to-point routes Locations Mandala operated scheduled services to 3 international and 17 domestic destinations Focus Cities Daily flight between Jakarta and Medan. International destination : Kuala Lumpur in Malaysia & Medan- Singapore. Indonesia : Jakarta - Soekarno-Hatta International Airport [Hub]; Medan - Polonia International Airport Singapore : Singapore Changi Airport Malaysia : Kuala Lumpur – Kuala Lumpur International Airport Other routes that have been approved include Jakarta-Singapore and Singapore-Denpasar (Bali)-Jakarta. Terminated destinations Hong Kong - Hong Kong Indonesia - Balikpapan, Banjarmasin, Batam, Bengkulu, Denpasar/Bali, Jambi, K upang, Padang, Pangkal Pinang, Pekanbaru, Semarang, Surabaya, Tarakan, Yogyakarta. Macau - Macau Average Stage Length : 5 hours
  • 24. Consumer New Route Mandala Air Marketing Plan - The Second Life24 New Route • Medan – Singapore – Raja Ampat/Wakatobi Full Service Airlines Route • Medan – Bali Not Favorite Route • Medan - Maluku
  • 25. Situational AnalysisStrategy Clock (Pricing Strategy) In-flight service – Mandala Airlines is give choices of seats class service airline. It had a buy on board service offering food and beverages for purchase by passengers, but no in-flight entertainment. Seats were reserved and allocated during check-in. Free in-flight magazines or newspapers and blanket were provided during flight. – Mandala Airlines had a baggage are included in the flight price about 20 kilos. Priority passengers also benefit from better seat locations (at the front of the aircraft), free lounge access and free food and beverages (both in lounges and during flight).[ • Ancillary Fees : Reservation changes, baggage limitations, frequent flyer point sales, concession
  • 26. Convenient (Ticketing Strategy) Mandala web site website for customers to book and pay for tickets electronically. Mandala Bye-Pass® airport self-service kiosks Mobile Web program Travel agency web sites (e.g. Travelocity, Expedia) Corporate booking agencies Traditional travel agencies In line with current airline practice, Mandala Airlines utilized an electronic ticketing and an e-payment system. The airline had a 24- hour call center Mandala T.T.M Ticket Teller Machine Mandala Air Marketing Plan - The Second Life26
  • 27. Mandala Air Marketing Plan - The Second Life27
  • 28. Marketing and Brand Position Mandala Air Marketing Plan - The Second Life28
  • 29. Customer Leadership Clarification Core Area Marketing Vision Mandala Air = “LCC Airline” Icon Marketing Expertise & Organization Product Leadership Maximize Marketing Efficiency Brand Leadership Premium
  • 30. Brand Strategy Platform... Brand Target Value Added Seeker Brand Essence Everyone already fly Brand Positioning Low Price – High Value Brand Personality Active, Dynamic, Modern
  • 31. Airlines in average Price Food Lounge Choices of Seat Class Hub Connecti vity Low Price Fast Departure from Cities Comfort able Baggage Included with Ticket Price v NEW The differentiations of Mandala Air than the competitor… Mandala Value Curve Proposed
  • 32. Co creation Mandala Experience Mandala Check and Go Conversation Mandala lovers Communal Activation • Mandala Lovers’ Near You! • Mandala Lovers’ with You! • Mandala Lovers’ with Community Campaign Recent "All You Can Fly" promotions allowed consumers to buy a monthly pass for unlimited travel to Mandala destinations. Mandala believes half of the buyers had not flown them before. All you can Fly Local Campaign Where can Fly Global Campaign
  • 33. Education & Awareness Product Experience Credibility/ Image Relationship Media Gathering PR Activities  Mandala Tiger Air “We’re Back” Exhibition  Mandala Tiger Air Mobile Booth  Advertisement,  TVC @ Commercials TV and Youtube Active at Social Media, M andala Tiger Air Mail List Developing affiliate relationships with banks Sales : Number of Sales and Profit Brand Equity : Mandala Tiger Air AllyoucanFly Sales : Number of Sales and Profit Brand Equity : Mandala Tiger Air 360 degree Communication The following table describes how Mandala's marketing program supports its brand position.
  • 34. Mandala Air Marketing Plan - The Second Life34 Alternative Recommendation  Social Media  Website  Mandala Lovers  Continue to Stress Differentiation  Leverage Integrated Customer Service System  Target Price Sensitive Customer  Brand Ambasador
  • 35. Mandala Air Marketing Plan - The Second Life35 Mandala Air Marketing Plan - The Second Life35 Period Controls – progress measurement and monitoring Mandala Air’s Marketing Performance
  • 36. Mandala Air Marketing Plan - The Second Life36 thanks…
  • 37. Appendix Mandala Air Marketing Plan - The Second Life37
  • 38. Change Mandala Air Marketing Plan - The Second Life38 Economy Soc-Cul Tech Market Pol-Leg • IT is expand very fast, especially in communication • Social Media Revolutions • Internet become very popular • Expand the technology of the website (i.e. iPhone apps, etc.) • Social Media Phenomenon • People mobility is increase • The growth of the aviation industry doubled from Indonesia's economic growth average 20% -21% per year. • Low cost carrier (LCC) service more attractive to suck 80% market share. • Domestic aviation market still needs a lot of planes, at least up to 1,000 units considering Indonesia is an archipelago, while from the side of the plane is still defeated by India, China, even Singapore. • Target of middle-class people of Indonesia increased by 7 million people each year. • We have a lot of business sectors that depend on the airline business, such as the tourism sector. • There are 60 million passengers by 2015 and 75 million by 2020. This opportunity is a good market for Mandala with the concept of low cost carrier. • Foreign airlines took the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. • Aviation Law. Airlines or foreign investor will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. • The rules on Law No. 1, 2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. • Aviation regulation and government policy • The increase in aviation fuel prices
  • 39. Competitor Mandala Air Marketing Plan - The Second Life39 • When the Asean Open Sky enacted in 2015, the national airline to compete with the airlines. • Six airlines So Tight Competitors in Asean Open Sky. Three-in- class airline services is a full service Singapore Airlines, Thai Airways, Malaysia Airlines, while three other carriers in the class cost (low cost carrier / LCC) is AirAsia, Tiger Airways and Jetstar Airways. • Long haul flight is an trial to get undeveloped market share • Differentiation from traditional LCC model by adding customer services or operation as full service airline with low fare • Ongoing industry consolidation has opened up prospects for new routes and airport deals • Full service airlines start cut costs to compete • Entrance of other LCCs • Increase in operation cost in producing value-added services • System disruption due to heavily reliance on online sales • The increase in customer’s requirements of higher-quality products/services
  • 40. Customer Mandala Air Marketing Plan - The Second Life40 • Customer more educated and have many information to take decision. • Customer have many choices • Customer more demanding and difficult to satisfy. • Customer loyalty is decrease because a lot of promotion that offer more benefits. • Customer tend to have more than one mobile phone • Price- oriented segment is very big, but have low buying power.
  • 41. Company Mandala Air Marketing Plan - The Second Life41 • Company is value-decider • The others 3C’s must be learned to see the effect to campany. • The must existing competence analysis for the company. • Base on the existing competence, take the stretch possibilities. • Company have several choices that is go/invest, no no/hold, harvest and divest. • To decided the choice, depend on company risk attitude
  • 42. Competitor Analysis 4P’s Mandala Air Lion Air Sriwijaya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink PT Saratoga Investment Group (51%), Tiger Airways(33%), Kreditur dan pemegang saham lama (16%) PT Lion Mentari Airlines PT. Sriwijaya Air PT. Indonesia AirAsia. PT. Metro Batavia Presiden Direktur Diono Nurjadin Rusdi Kirana Chandra Lie Sardjono Jhony Tjitrokusumo Joseph Saul Mulai Beroperasi 17 April 1969, Berenti beroperasi 10 Januari 2011 – 4 April 2012 19 Oktober 1999 2003 6 September 1962 5 Januari 2002 8 Agustus 2008 Aliansi Tiger Airways Wings Air - Slogan Partner Airlines of Tiger Airways We make people fly Enjoy Simplicity Jenis Kelas Bisnis Ekonomi - Program Frequent Flier Lion Pasport Club - Merpati EasyFlyer Lounge Penumpang Mandala Priority Lion King Lounge - Website www.mandalaair.com www.lionair.c o.id www.sriwijayaair .co.id www.merpati.co. id www.batavia-air.co.id Facebook #fans Merpati airlines # 2.432 Twitter #followers @mandalaair #8.917 @tigerairways #11.467 @tigerairwayssg #14.280 @lionairliners # 2.384 @SriwijayaairSJ #2.703 @Sriwijayaair #1.200 @airasiaid #147.745 @merpati_info # 5.011 @bataviaair #3.242 @citilink #18.154 Twitter tweets @mandalaair #632 @tigerairways #352 @tigerairwayssg #1.063 0 @SriwijayaairSJ #18 @Sriwijayaair #2 30.929 6.330 28 8.147 Youtube Citilink Jumlah Armada 11 72 29 33 Kota Tujuan 16 61 36 87 Mandala Air Marketing Plan - The Second Life42
  • 43. Price Booking 24 April 2012 (7 – 14 Mei) - pagi Mandala Air Lion Air Sriwijaya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink Jakarta – Denpasar Prom o Rp. 401.000; Promo Rp. 500.000; Promo n/a Promo Rp. 379.000; Eco Promo 0 Rp. 399.090; Ekono mi Rp. 643.000; Ekonomi Rp. 530.000; Regule r Rp. 443.90 0; Flexi Rp. 588.000; Eco Budget Rp. 716.900; Busin ess n/a Business n/a Ekonomi Rp. 698.000; Eco Medium Rp. 886.900; Business - Eco Premium Rp. 1.266.900; Denpasar - Jakarta Prom o Rp. 544.000; Promo Rp. 460.000; Promo n/a Promo n/a Eco Promo 0 Rp. 399.090; Ekono mi Rp. 643.000; Ekonomi Rp. 530.000; Regule r Rp. 443.90 0; Flexi n/a Eco Budget Rp. 556.900; Busin ess n/a Business n/a Ekonomi Rp. 918.000; Eco Medium Rp. 886.900; Business - Eco Premium Rp. 1.266.900; Mandala Air Marketing Plan - The Second Life43
  • 44. Place Reserva tion by Mandal a Air Lion Air Sriwijay a Air Air Asia Merpati Nusanta ra Airlines Batavia Air Citilink Website (online) v v v v v v v Travel Agency v Airport Phone (call centre) V v v Mobile Kantor Pusat V Mandala Air Marketing Plan - The Second Life44
  • 45. Promotion Manda la Air Lion Air Sriwija ya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink Online Promot ion Visa epaymen t Bca Visa Bank bri Bni Bii Bank sumsel Visa master Visa Mandiri OCBC NISP Klik Bca BCA Mandiri NMO Visa Master Paypal Discover American Express Mandala Air Marketing Plan - The Second Life45
  • 46. Service Mandala Air Lion Air Sriwijaya Air Air Asia Merpati Nusantara Airlines Batavia Air Citilink Booking v v v v My Flight v v v Flight Info v v v Hotels & Tours v v Travel Info v v v Loyalty Program v v v v Courier v Cargo v Entertainment v Online Shopping v v Credit Card v Savers Account v Corporate v v Promosi v v v Webbanner v v v services v v experience v car v asuransi v Quick links v Web check in v At the airport v Mandala Air Marketing Plan - The Second Life46
  • 47. Situational Analysis Ansoff Matrix Products Existing New Markets Existing Market Penetration/Consolidation 1 4 Product Development 2 5 New Market Development 3 Diversification
  • 48. Situational Analysis • Strategy Clock (Pricing Strategy)
  • 49. SWOT Matrix Analysis Strength 1. Shares owned Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit of 15%, and the old shareholders Cardig and Indigo (1%). 2. Tiger Sandiaga and prepare capital of U.S. $ 250 million. 3. Tiger Airways business model adopted. 4. Low-cost airline 5. Mandala operated scheduled services to three international and 17 domestic destinations, used a narrow-body fleet of Airbuses. 6. The name Mandala is not changed 7. Safe and reliable flights 8. Tiger Airways, together with its associated airlines, operates a fleet of 32 Airbus A320 aircraft Weaknesses 1. Service resource is limited by lower costs Limited human resources Situation Could not handle irregular. 2. Government interference and regulation on airport deals and passenger compensation. 3. Non-central location of secondary airports. 4. Brand is vital for market position and developing it is always a challenge 5. Heavy reliance on outsourcing 6. New entrants to Provide the price-sensitive services 7. Mandala is still not a good name in the public eye since 2011 had been frozen. 8. The plane is still not much 9. Mandala routes are limited. 10. Other companies using the LCC business model too. 11. New Mandala will penetrate the Jakarta-Medan route. As for the international flights will start from Jakarta to Kuala Lumpur, Malaysia. Opportunities A. The growth of the aviation industry average of 20% -21% per year. 2. Long haul flight to get your trial is an undeveloped market share 3. Differentiation from traditional LCC models by adding customer services or as full-service operation with a low fare airline 4. Ongoing industry consolidation has opened up prospects for new routes and airport deals 5. High fuel prices will squeeze out unprofitable competitors 6. Service low cost carrier (LCC) more attractive to suck 80% market share. 7. 16 domestic routes and four international routes 8. Target the middle class 7 million people each year. 9. Increased tourism sector 10. 60 million passengers by 2015 and 75 million by 2020. 11. Mandala will operate 10 Airbus A320 aircraft. 12. Aviation Law. Airlines or foreign investment will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. 13. Expand the technology of the website (ie iPhone apps, etc.) Strength/ opportunities (SO) 1. Increase Market Share 2. Increase Sale & Revenue 3. Expand current customer rewards program to build customer loyalty. 4. Expand freight air portion into former Tiger Airway and Local areas 5. Mandala Airlines utilized an electronic ticketing and an e-payment system. The airline had a 24-hour call center and a website for customers to book and pay for tickets electronically Weaknesses/ opportunities (WO) 1. Build Strong Mandala Brand 2. Increase number of pesawat 3. addition Route 4. Improve efficiency through the use of aircraft Airbuss 5. Focus on service, speed and departure point- to-point. Treats 1. Full service airlines cut costs start to Compete 2. Entrance of other LCCs 3. High fuel price decreases yield 4. Accident, terrorist attack, and disaster and affect customer confidence 5. Aviation regulation and government policy 6. Increase in operation cost in producing value-added services 7. System Disruption due to Heavily reliance on online sales 8. Asean Open Sky enacted in 2015 9. Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways, Malaysia Airlines, AirAsia, Tiger Airways and Jetstar Airways. 10. The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. 11. Foreign airlines also eyeing the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. 12. The increase of in aviation fuel prices 13. The increase of in the customer's requirements of higher-quality products / services 14. Tiger Airways Mandala proposed name is replaced with the name Tiger. Strength/ Treats (ST) 1. Expand brand recognition as top low-cost air carrier to eliminate competition. 2. Retain low-cost operating strategy to remain competitive. 3. Focus on the importance of safety, security, and service. 4. Focus on the timeliness 5. Offer the most competitive price Weaknesses/ Treats (WT) 1. Increase load capacity to get 2. maximum value out of jet fuel. 3. Initiate employee rewards program for productivity and customer retention. 4. Create expanded strategy and growth plan to thwart competition. 5. Reduce the cost of jet fuel that will decrease operational costs Mandala Air Marketing Plan - The Second Life49
  • 50. Mandala Air Marketing Plan - The Second Life50 Netnography (3)
  • 51. Mandala Air Marketing Plan - The Second Life51 Netnography (3)