COURSE ASSIGNMENT #2 GENERAL AVIATION MARKETING 105615 FALL 20

PIA HAS ANNOUNCED TO LAUNCH ITS FLIGHT TO AL-QASEEM IN SAUDI ARABIA AS ITS 5TH
DESTINATION. INITIALLY THE NEW MARKET WILL BE SERVED BY A320 AIRCRAFT. 

Ansoff Matrix of Pakistan international airline

Growing a business is the process of improving some measure of a company’s success. A business
can grow in terms of employees, customer base, international coverage, profits, but growth is most
often determined in terms of revenues. There are different ways of growing a business. Igor Ansoff
identified four strategies for growth and summarized them in the so called Ansoff Matrix. The Ansoff
Matrix (also known as the Product/Market Expansion Grid) allows managers to quickly summarize
these potential growth strategies and compare them to the risk associated with each one. The idea
is that each time you move into a new quadrant (horizontally or vertically), risk increases. Each
quadrant of the Ansoff Matrix will be elaborated on below.

PIA is Pakistan's largest airline, and operates a fleet of more than 30 aircraft. The airline operates
scheduled services to 25 domestic destinations and 28 international destinations across Asia,
Europe, Middle East and North America along with 19 interline destinations. It operates nearly 100
flights daily

Market penetration

It refers to increasing sales through existing products in existing markets. The first strategy that the
company makes use of is aggressively marketing its products in Pakistan and various other nations it
operates in. This helps promote the products and also secure their dominance in various growing
markets. It develops attractiveness by promoting its products and offering tickets at attractive prices.
Competitive pricing plays an important role in the airline industry. PIA also promotes current users
to increase their use by offering loyalty schemes that allow them to purchase tickets at lower prices,
earn air miles, and various other benefits. The company also regularly revises its on-board serving
menus and ensures they match the needs of the passengers of the market. The company has
strategic alliances with various other airways to develop linked routes to facilitate existing markets.
During holidays and other special events, PIA offers tickets at lower prices to boost sales and
increase revenues.
Product Development

Product development is the strategy to launch new products in existing markets. PIA does this in
numerous ways. The first strategy is to procure new aircraft and operate them on different routes to
offer passengers with greater comfort, shorter duration, and better services. The company has also
developed in-flight Wi-Fi on certain routes to facilitate customers during their flight by providing
them with internet access at all times. The existing aircraft are also renovated from time to time to
ensure comfort is maintained and technology is upgraded. The improved passenger flight experience
allows the company to provide the customers with greater comfort and ensure they are satisfied
with the experience. The product development division of PIA works to ensure improvement is
continuous and products are developed on a routine basis.

Market Development

PIA develops its market by creating routes to a new destination and offering services on those new
routes. These new routes are geographical locations the company expands into. Another strategy
the company makes use of is targeting new segments in its existing markets by offering slightly
different products. An example of this is LAUNCH ITS FLIGHT TO AL-QASEEM IN SAUDI ARABIA AS
ITS 5TH DESTINATION. As a result, the company is able to fly between new routes, offer new
facilities on existing routes, and so on. PIA can increase sales and generate greater revenue through
this market development strategy.

Diversification

Diversification, selling new products in new markets, can be a risky strategy for PIA. PIA does this by
procuring new aircraft and flying them on new routes. This can cost the company in various ways
such as a reduced number of passengers, marketing costs, aircraft maintenance costs, and so on. It
can diversify into various hospitality businesses such as hotels, resorts, rentals, and so on. These are
often the facilities airline passengers desire once they embark on a flight. PIA can take advantage of
this. It can work on conglomerate diversification by stepping into various unrelated industries such
as the banking sector, hospitals, apparel, shoes, sports, and so on. It can take advantage of the
successful brand name.