'Contingencies to Airasia’s Marketing Strategy Essay\r'

'Suggest spark offle contingencies communicateAsia should consider and rationalize your choice. What are the principal(prenominal) passings to the current marketing dodge should AirAsia try to respond to these contingencies. There are bend of threats that AirAsia faces thus it should work well-prepared contingency plans in fibre certain situations occur. The fol blueing depart focuses on analyzing three main contingencies that AirAsia should stick into consideration as well as the modifications to the current marketing strategy that it would have to make to respond in matter certain events occur.\r\nWhat if price fight happens… To debate with the rivals, each airline introduced its own strategy. re todayned full military helper carriers like capital of Singapore Airlines and Thai Airways have set up commencement cost subsidiaries. Malaysia Airlines launched competitive forwarding scheme while independent affordable airlines like Valuair focused on change guest services with oblation additional benefits to customers. Obviously, the harsh competitiveness in the character intones the probability that price war efficacy happen. Price war happens when nearly entirely airline companies simultaneously moolah to reduce their prices and the region’s zephyr industry as a self-colored fails to deliver profit.\r\nPrice war readiness have a serious daze on AirAsia if it, together with other airlines in the region, starts to reduce its prices to compete. Customers now will have various choices and would be able to spot turns to the airlines that offer them the best price as well as best service. If price war does happen, AirAsia should make the fol mooing modification to its current strategy: Increase customer satisfaction by improving on-flight service quality as discussed in judiciousness in the third paragraph of misgiving one. What if customers decide to switch to other airlines…\r\nAir Asia now has to face up w ith increase competition not single from low cost subsidiaries of full service carries exactly also from the emergence of independent low cost airlines. With the increasing emergence of late airlines which provide customers with not only low fares precisely also â€Å"a level of service far beyond that expect”, the probability that customers switch to other airlines is precise high. Recently, AirAsia has been receiving galore(postnominal) complaints from passengers who are unsatisfied with the service quality. Focusing intensively on retentivity costs low, AirAsia neglected the satisfaction and convenience of its customers.\r\nThus, the company should consider the possibility that customers king switch to other airlines. In this case the following modifications to the strategy should be make: AirAsia should offer incentives for the customers to stay with the company by introducing frequent flyer bonus miles. To act customers’, AirAsia great deal also offer social station cards which would provide them not only with additional miles but also with steady customers’ discount on precise flights to specific destinations or at special time period of time.\r\nWhat if AirAsia is unsuccessful in entering saucily markets such(prenominal) as mainland China and India… AirAsia is now looking for expanding routes to other countries in the region and China and India are a considerable potential. However, these markets have completely different economies and thus thither is a probability that the market will not support a in the raw airline. Also, for example, when going to China †a huge market, AirAsia needs to be gear up to face tough competition. Besides acceptable reputation in the market, well-established airlines in China such as China Airline, chinaware Pacific, etc. are offering very high quality service to customer.\r\nIn addition to that in the meantime, AirAsia has to compete with many tough competitors in its local market. Thus, there is possibility that AirAsia might not take the lead when entering new markets and might not be able to partake its targets in new markets. Therefore, AirAsia should take into written report the possibility of low consume and be ready to make modifications to its strategy in order to respond: The prodigious Games 2008 would be a great opportunity for AirAsia to strengthen its image in customers’ mind.\r\nTo take this advantage, AirAsia should channelize some activities to promote the company. Other salient companies will certainly promote itself through and through taking part in such activities as surpassing Sponsorship, On-Air advertisement, etc. AirAsia should subscribe a different tactic. Instead, it can earn association between AirAsia and the Olympic through programs spread via mass media such as: design logo for AirAsia used during the Olympic time or organize a lottery program the prizes of which would be Olympic tickets or flying ticke ts inside China.\r\nAirAsia can also use other promotion programs like offering round trip tickets flying to cities where the Games would take place at the price of 1 reminbi (Chinese currency) for the first 10 customers buying tickets at a random period of time during 6 months out front the Olympics. This should help build up the demand for AirAisa’ services among the customers and enhance its position in customers’ mind.\r\nTo conclude, it is important for AirAsia to be aware of all contingencies that whitethorn happen during its operations and to be ready to apply modifications to the strategy to entertain itself from any possible issues that might occur. These contingencies may not come to reality but it is essential to have contingency plans and to be able to make necessary modifications to the strategy in case of the price war, or lost of the customers, or difficulties entering the new markets in order to adapt to these changes and pertain to operate successfu lly.\r\n'