CASE # X CASE TITLE

CASE PROBLEM / OBJECTIVE STATEMENT

2-3 sentence recap or summary of the brands situation based on the case facts, and all important
assumptions + 1 sentence statement of your case analysis objective.

SITUATION ANALYSIS
Minto Case Method analysis of all applied frameworks (all actual frameworks can appear in the
appendix), arranged in terms of major issues or opportunities for the brand. Highly recommend using
bullet points to highlight each major issue or opportunity and focus on building a case with each
paragraph to support your recommendation.

CONCLUSION / RECOMMENDATIONS
Answers to all guide questions, based on Situation Analysis. Again, be organized and complete in
description of recommendations. Similarly recommend using bullet points, especially to specifically
address the bullet points on major issues / opportunities in the Situation Analysis. All recommendation
specifics, i.e. budget, timeline, execution examples in the Appendix)

*A note on Appendices: While youre allowed to copy data / information from any available resource,
kindly use the APA format to properly cite your sources.

GROUP # X Surnames of all members, in alphabetical order

BA 170 (Section), (Date of Submission, Mmm DD, YYYY format)
*Submission by GROUP #7 BA170THW 2nd Sem SY 2013-14 Alayza Azis, Kevin Ong, Vinchie Que,
Samya Valenzuela, Franz Villafaa, Winchell Wong and Mara Zarraga
**This is purely an example for format purposes and is not perfect analysis either, but is a very, very
good benchmark for idea organization and writing brevity. Some frameworks may change as we
progress with the semester.

CASE # 1 AirAsia: The Skys the Limit

CASE BACKGROUND / OBJECTIVE STATEMENT
Founded by CEO Tony Fernandes in 2001, AirAsia broke the boundaries in the airline industry through
pioneering the no-frills airline concept. Through the statement, with the right partners and a strong
marketing strategy focusing on the promise of low fares and good brand experience, they had
acquired the credit of being the best low-cost airline. They had also opened new travel routes to never-
before served destinations increasing their reach as well as their market. The company also owns
various subsidiaries such as AirAsia Zest, AirAsia X, Thai AirAsia. From giving justice to their tagline,
Now everyone can fly, to appealing to their customers emotions with Have you flown with AirAsia
recently? they have really made their mark in the airline industry. As competition becomes tougher
for AirAsia, we have made recommendations based on our research for future demand. Given that
there have been a number of growing LCCs, how can AirAsia increase customer loyalty to
maintain profitability and remain as the prime LCC in the airline industry?
SITUATION ANALYSIS
After analyzing the case of AirAsia and its operating environment, the group believes that the following
factors listed will be the key determinants in AirAsias strategy to maintain competitiveness in the
growing LCC market.
(1) Short distance travel offers - Due to terrorist attacks 1 and later on economic recession 2, people
have moved their demands from long-distance travelling to short distance travelling 3 providing an
opportunity for AirAsia to open regional destinations 4 and never-served destinations 5. Thus, for
AirAsia, to stay profitable it must improve and maintain their edge on short distance flights.
(2) Online presence - Through the wide use of the Internet and online booking, AirAsia has further
increased their control of the market share 6. The Internet being a free portal to all users allows
AirAsia to utilize another channel to further gain advantage from its competitors since it is the
biggest LCC in Asia.
(3) Presence in other media sources - From staying true to their promise of Now everyone can fly
to reaching out further with their Have you flown AirAsia recently, they have already made their
presence known to the general public by continuing to uphold their image of being an LCC and
offering quality service7. They have increased travellers and their customer base due to the low
airfares they offer. But in order to gain a larger share of the market, AirAsia needs to rethink its
marketing strategy once more.
(4) Pioneer in opening never-served destinations - As one of the pioneers among the LCCs,
AirAsia has an advantage to open more destinations. 8 Opening new locations to markets will be
highly desirable for the company, since not only will it maintain its branding as a pioneer LCC, but
gain monopoly on some flight routes.

GROUP # X Surnames of all members, in alphabetical order

BA 170 (Section), (Date of Submission, Mmm DD, YYYY format)
 CONCLUSION / RECOMMENDATIONS
Our recommendations will be based on a new campaign called WE fly with AirAsia. This campaign
aims to promote the family and the group of friends which makes flying together a better
experience to see the world. With AirAsia, travelling becomes a better experience since all in its
marketing mix will be geared towards this theme. Through this campaign, AirAsia will gain deeper
customer loyalty since it focuses on the experience of travelling rather than the cheapness of it. Also,
it builds on the sentimental moments group travelling can bring.
(1) Product - AirAsia must have group packages for group travelling as well as packages that offers
continuous travelling to another destination. To give an example, if a certain group buys a ticket
together, they can avail of the group package good for a vacation of 3 days in a certain destination
and they can travel to another destination for another 3 days with AirAsia as their airline to bring
them to the other location which will be part of the package and ticket. Also, AirAsia should
continue to serve more destinations and promise zero delays to enhance the experience and
convenience.
(2) Price - Group packages could be offered to customers. Freebies and discounts could be given to
customers who purchase numerous flights for different times and for many passengers. AirAsia can
also focus on increasing a customers value for money by providing better service and amenities
relative to its competitor LCCs since it cannot lower its prices anymore due to profitability. Simply
improving in-flight service and decreasing delayed flights are a few examples. It can also have a
loyalty mileage rewards promo where a certain number of flights with AirAsia will entitle a customer
to free travel miles.
(3) Place - AirAsia must make the availability of ticket ordering more convenient and accessible to the
consumers through opening more offices and taking advantage of the Internet. The Internet can be
an avenue for AirAsia to cater to its customers through the use of smartphone applications.
(4) Promotions - AirAsia can change its current marketing campaign to a campaign that appeals to
families and groups of friends to promote group travelling. Its advertisements can be focused on
travelling with your loved ones or your friends such as portraying a scene where groups of friends
enjoy the flight together. Using the Internet, AirAsia can tap into a new form of media while
minimizing advertising costs through social networking sites such as Twitter, Facebook, and
Instagram and a smartphone app. All these will show the new campaign WE fly with AirAsia.
APPENDIX
SWOT Analysis
STRENGTHS WEAKNESSES
8
pioneer among the LCCs limited resources
fulfill customer needs by collaboration with
partners
7
promise of low fares and good brand
experience
LCC forming alliances to lower operating costs
operates on a cooperative corporate culture
8
worlds lowest unit cost per ASK

OPPORTUNITIES THREATS
3
consumers inclination to travel shorter full service carriers joining LCC/ increasing
destinations number of LCCs
7
increased media coverage rising fuel prices and landing charges
6,7
development of Internet ban on advertisements that offer zero-dollar
good economic growth and consumers rising seats without revealing full charges
income
open-skies agreement

STEP Analysis
Social
1
Terrorist attacks in 2001 caused hesitation for people to travel
3
In effect, people preferred to travel in the nearby countries than long distance during the holidays
Travellers change of preference from high-priced air travel offered by the Malaysia Airline System to
low-cost air travel offered by AirAsia
Technological
7
Increase media coverage on LCCs helped consumers understand the no-frills concept better
6
Use of the Internet helped AirAsia reach more customers through online booking

GROUP # X Surnames of all members, in alphabetical order

BA 170 (Section), (Date of Submission, Mmm DD, YYYY format)
 Customers without credit cards were able to pay cash through any Alliance Bank branch in Malaysia
Economical
2
Economic recession in mid-2008 decreased the number of business and leisure travelling
Rise in fuel prices and landing charges
Political
Deregulation of air travel in Asia allowed AirAsia to be granted landing rights in Indonesia, India,
Thailand, and Singapore (open-skies agreement)
Austerity drive - less travel/only economy class travel was encouraged
Ban on advertisements that offer zero-dollar seats without revealing full charges

Current Marketing Mix

Product low-cost budget; 4no-frills flights to regional routes in Asia; 5new routes to never-served
destinations; carrying belly-hold cargo; AirAsia X

Price up to 60% of savings as compared to MAS prices; zero dollar seats

Place Malaysia, Thailand, Indonesia, etc.

Promotio 7
known for being the first airline to introduce the budget, no-frills airline concept; free
ns seats campaign; Have You Flown AirAsia lately? campaign; TV commercials and a
series of music-themed vignettes featuring VJs from the popular STAR channel to
position AirAsia as a cool, fun brand

Sources
http://www.tourismnewzealand.com/sector-marketing/youth-market/;
http://www.travelchinaguide.com/tourism/; http://news.yahoo.com/china-southeast-asia-experience-
tourism-boom-211709199.html

GROUP # X Surnames of all members, in alphabetical order

BA 170 (Section), (Date of Submission, Mmm DD, YYYY format)