Contingencies to Airasia’s Marketing Strategy Essay

Suggest deuce-ace contingencies AirAsia should consider and rationalize your choice. What are the main modifications to the current marketing system should AirAsia undertake to move to these contingencies. There are number of threats that AirAsia faces thus it should give way well-prepared contingency plans in case certain situations occur. The fol junior-gradeing part foc examples on analyzing three main contingencies that AirAsia should take into consideration as well as the modifications to the current marketing scheme that it would have to denounce to respond in case certain events occur.What if price war happensTo compete with the rivals, each airline introduced its own strategy. Famous full(a) serve up carriers like Singapore Airlines and Tai Airways have set up low represent subsidiaries. Malaysia Airlines launched competitive procession scheme while independent low-cost airlines like Valuair focused on improving customer services through offering additional benefi ts to customers. Obviously, the acerb competitiveness in the region strengthens the probability that price war competency happen. Price war happens when almost all airline companies simultaneously go forth to conquer their prices and the regions aviation industry as a whole fails to deliver profit.Price war exponent have a serious impact 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 teddy to the airlines that offer them the top hat price as well as best service. If price war does happen, AirAsia should make the following modification to its current strategy Increase customer satisfaction by improving on-flight service woodland as discussed in depth in the third paragraph of examination one. What if customers decide to switch to other airlinesAir Asia now has to face up with increasing competition not only from low cost subsidiaries of full service carries but also from the emergence of independent low cost airlines. With the increasing emergence of new airlines which provide customers with not only low fares but also a level of service far beyond that expected, the probability that customers switch to other airlines is very high. Recently, AirAsia has been receiving many complaints from passengers who are unsatisfied with the service quality. Focusing intensively on keeping cost low, AirAsia neglected the satisfaction and convenience of its customers.Thus, the company should consider the possibility that customers might switch to other airlines. In this case the following modifications to the strategy should be made AirAsia should offer incentives for the customers to stay with the company by introducing frequent pecker bonus miles. To motivate customers, AirAsia can also offer membership separate which would provide them not only with additional miles but also with fix customers discount on specific flights to specific destinations o r at special(a) period of time.What if AirAsia is unsuccessful in entering new markets such as mainland China and India AirAsia is now looking for expanding routes to other countries in the region and China and India are a huge potential. However, these markets have completely distinct economies and thus there is a probability that the market will not software documentation a new airline. Also, for example, when going to China a huge market, AirAsia ineluctably to be ready to face tough competition. Besides good report in the market, well-established airlines in China such as China Airline, mainland China Pacific, etc. are offering very high quality service to customer.In 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 atomic number 82 when entering new markets and might not be able to throw its targets in new markets. Therefore, AirAsia should take into acco unt the possibility of low look at 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 orbit in customers mind.To take this advantage, AirAsia should organize some activities to promote the company. Other wide companies will certainly promote itself through taking part in such activities as Olympic Sponsorship, On-Air advertisement, etc. AirAsia should choose a different tactic. Instead, it can create association between AirAsia and the Olympic through programs outspread 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 escape tickets inside China.AirAsia 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 p eriod of time during 6 months before the Olympics. This should help build up the demand for AirAisa services among the customers and resurrect its position in customers mind.To 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 cherish itself from any possible issues that might occur. These contingencies may not come to earth 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 befogged of the customers, or difficulties entering the new markets in order to adapt to these changes and go along to operate successfully.