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Master of Science in Planning (Tourism)MIT2203TOURISM MARKETING<br />Lecturer: <br />Prof. ZeinabKhalifah<br />SOCIAL MARKETING: AIR ASIA AS A CASE STUDY<br />Prepared by:LidaSayahi<br />3March 2011<br />

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<ul><li> INTRODUCTION OF AIR ASIA

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SOCIAL MARKETING

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SOCIETAL MARKETING CONCEPT

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SOCIETAL MARKETING IN AIR ASIA

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CONCLUSION</li></li></ul><li><ul><li>Air Asia Berhad is a Malaysia-based low- cost airline

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Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia

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Domestic and international flights to over 400 destinations spanning 25 countries

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The low-cost-carrier terminal(LCCT) at Kuala Lumpur International Airport(KLIA)

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Thai, Indonesia, and Philippines Air Asia will be operated at mid-2011 with 14 air planes

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won the Skytrax World's best low-cost airline award in 2009 and 2010

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The world's lowest operating costs at $0.035/seat-kilometer in 2010

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The first airline in the region to implement fully ticketless air travel system</li></li></ul><li><ul><li>Air Asia X is a long- haul, budget airline based in Malaysia

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The airline is operated by Air Asia X

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It commenced operations on 2 November 2007

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Its first service flew from Kuala Lumpur International Airport, Malaysia, to Gold Coast Airport in Australia

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Air Asia X flies to destinations within Asia , as well as destinations in Oceania and Europe

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The airline operates a fleet of 11 aircraft and has placed orders for more.

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Air Asia X operates as a franchise of the brand Air Asia, which is Asia's largest low-cost carrier

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The franchise is able to keep costs down by using a common ticketing system, aircraft livery , employee uniforms, and management style .Air Asia X is also affiliated with Virgin Groupand Air Canada</li></li></ul><li><ul><li>Established in 1993 , Commenced operations on 18 November 1996

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Originally founded by a government-owned conglomerate DRB-Hicom

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On 2 December 2001, the heavily-indebted airline was purchased by former Time executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit

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After great deliberation as the initial offer was fifty sen

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Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0.27)</li></li></ul><li>Social Marketing:the use of marketing principles and techniques to influence a target audience to voluntarily accept, reject, modify or abandon a behavior for the benefit of individual, groups or society as a whole.”- Improving the quality of life- PhilpsKotler, Ned Roberto, Nancy Lee<br />

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<ul><li>Focus on the stakeholders, as well as the business and its customers

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Need to balance 3 items;

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Company profits

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Customers wants

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Society interests

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The difference between short term consumer wants and long term consumer welfare</li></li></ul><li>Investment in the Latest Technology and Efficient Use of Aircraft<br /><ul><li> The new aircraft are more efficient to operate and more fuel efficient and we realise substantial savings with the group-wide operation of a single model aircraft.

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Air Asia flies direct, or “point to point”, and does not offer any connecting services. A direct service between two points will produce lower emissions than two flights via a hub.

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For example, On average each of Air Asia’s Airbus A320 aircraft carries 22 more passengers and airlines operating an Airbus A320 aircraft would burn 15%more fuel per passenger, compared to Air Asia.</li></li></ul><li>Short turnarounds<br /><ul><li>Air Asia’s business model is designed to achieve high aircraft utilisation. Key to this is minimising the turnaround time.</li></ul>Minimal Use of Ground Equipment and Simple Airport Infrastructure<br /><ul><li> Air Asia encourage their passengers to use our self service check-in options, which helps reduce the need for expensive airport infrastructure.</li></li></ul><li>Minimal waste<br /><ul><li> Air Asia’s no frills service is designed to reduce waste in all areas. Air Asia is a ticketless airline and has a policy of operating a near paperless office. What paper waste there is, is disposed of through our “Red Heart, Green Mind” recycling program. </li></li></ul><li>Excess baggage fees<br /><ul><li> Air Asia charges for excess baggage, thus encouraging our guests to fly as light as possible. Increasing these fees not only adds revenue to the airline, but also serves as a strong disincentive to bringing on board heavy luggage. Reducing the weight on board aircraft helps increase fuel efficiency and maximizes environmental considerations in other aspects of operation as well.</li></li></ul><li>Indonesia earthquake:<br /><ul><li> Air Asia put on a special “charity flight” from Jakarta to Padang, offering seats for free to families of the victims. Within 20 minutes, all 142 seats were snapped up. We also provided 1.5 million tons of free cargo space to ferry relief supplies to the earthquake-hit area.

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AirAsia ferried–free of charge–more than 56 tones of goods, including food, medical equipment and clothing, Among the relief agencies and NGOs that sent goods and volunteers via Air Asia were Mercy Malaysia.</li></li></ul><li>Dreams come true :<br /><ul><li>Air Asia collaborated with Children Wish Society , a 17-year-old girl suffering from terminal leukemia to fulfill her dreams. She had made a wish to travel to the holy city of Mecca before the cancer took her life. However due to her condition, doctors advised against travelling the long distance.</li></li></ul><li>UTM AND AIRASIA SIGNED LETTER<br /><ul><li>UniversitiTeknologi Malaysia (UTM) and Air Asia Berhad (Air Asia) signed a Letter of Intent to provide special travel packages and establish technical cooperation in the field of aeronautical engineering, apart from executive programmers to be conducted by UTM.</li></li></ul><li><ul><li>It become all the more important in cases where legal or political have not helped the causes and voluntary change on the part of the individual or society desired.

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Societal marketing is gaining importance worldwide as people become aware of social and environmental issues both old and new.</li></li></ul><li><ul><li>http://www.airasia.com/my/en/corporate/irannualreport.html

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http://www.dailyexpress.com.my/news.cfm?NewsID=52967

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http://web.utm.my/today/index.php?option=content&task=view&id=788&Itemid=1

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AIR ASIA Annual Report 2009</li>