Rationale of Your Choice of the Company

AirAsia is one of the Malaysian low-cost kinds of airline which was being headquartered in Kuala Lumpur, Malaysia. This is the largest airline in Malaysia by destinations along with fleet size. AirAsia operates in different scheduled international along with domestic kind of flights wherein they travel to more than 165 destinations spanning in more than 25 countries (“Airasia.com”, 2018). The company was founded in the year 18 November 1996 and the company is headquartered at Kuala Lumpur which is situated in Malaysia. The number of employees working in AirAsia is 17000 and the number of destinations wherein the Airlines is operating is more than 74 countries in an effective manner (Gengler& Mulvey, 2017).

AirAsia has been chosen and taken into consideration as this is the public company which has huge stock and this is known by the general public as well. Furthermore, this is one of the largest low-cost airlines which is operating in Malaysia and the revenues which have been earned by the company has been gaining huge profitability in comparison to the other competitors in the entire market (Bruwer& Li, 2017). Moreover, AirAsia have strong kind of segmentation as the main focus of the airlines is to provide the customers with low cost delivery and this has been voted as the largest and the most convenient kinds of airline in the entire industry (Achroll& Kotler, 2014).

According to Serrat (2017), segmentation plays a major role in the organization which helps in managing the flow of the different goods and services of the company in reaching out to the different customers in more than one nation for profit. There are different kinds of segments in the AirAsia Airlines which are required to be described in such a manner which will help in managing the overall effectiveness in the segmentation, targeting and positioning of the different bases appropriately (Goworek, McGoldrick& McGoldrick, 2015). The segmentation of AirAsia is inclusive of the following aspects which are described as follows:

AirAsia have strong kind of segmentation aspect in which this has been seen and analyzed that the airline is mostly focusing on the providing low cost delivery to the different customers who are travelling with them. This has been nominated and voted as the World’s Best Low-cost airlines in the last five consecutive years from 2014-2018 (Möller&Parvinen, 2015). The segmentation of the AirAsia Airlines has been done in such a manner which is inclusive of the different demographics, user related, socio-cultural along with benefits sought segmentation which helped them in segmenting themselves in an appropriate manner.

Under the demographic aspect, the income if one of the major variables which is required to be taken into consideration of segmenting the market of AirAsia Airlines. Income is one of the major indicators which are required to be identified for the different customers who travel by AirAsia Airlines in comparison to the other competitors in the entire market (Sargeant& MACQUILLIN, 2016). The Benefit Segmentation Strategy is being used by AirAsia which helps them in catering to the different needs of the developed nations effectively. Furthermore, AirAsia tries to offer the different individuals by offering them benefits of the low pricing as the Air Travel is being perceived as the most expensive travelling option effectively (Kotler, 2015).

Customer Analysis and Customer Segmentation

As per the geographic aspect, the segmentation of AirAsia has been done on the basis of different regions travelling from China, India along with Vietnam (Shaw, 2016). The age group is inclusive of all the age groups starting from kids, teenagers, old-aged and middle-aged individuals (Schlegelmilch, 2016). On the basis of the psychographic aspect, lifestyle is moderate-oriented and this is essential for the regular travel for the different individuals. Lastly, the behavioral segment is inclusive of the different occasions wherein the regular travelers are being taken as the major target segment along with the status of the users are affordability as well.

Targeting is essential in nature as the target group of the different customers within the serviceable market of the business which has decided to aim the marketing efforts towards (Venter, Wright &Dibb, 2015). The targeting of the market is inclusive of the different segmenting the market wherein the market is appropriate and this will help in determining the products which will be offered in each segment. The major target customers who are being targeted by AirAsia is inclusive of the ones who are conscious regarding the budget and keen on saving time and money effectively.

Bases of Segmentation	Target Segment (Economy Class)
Travel and Tourism Industry Base	The main target segment base is economy class and the expectations of the customers are low
Psychographic Base	The lifestyle of the different individuals in the economy and budget airlines are moderate and they prefer the same for the regular travel. The personality of such individuals is easy going in nature (Philip, 2016).
Behavioral Base	The individuals who are being targeted in such segment is inclusive of regular travelers and who wishes to go in budget airlines and they do not care about the comfortability and quality of the airlines (Nijssen, 2017)
Geographic Base	In the geographic base, the different customers who are being targeted in these respective airlines are starting from kids, teenagers along with old aged (Pyo, 2015)

Bases of Segmentation	Target Segment (Executive Club)
Travel and Tourism Industry Base	In this respective class, the expectations of the different customers are high along with the image of the customers is positive in nature. The descriptors of the trip are generally for the business purpose
Psychographic Base	This is specifically for the different group of the different individuals who prefer taking the different business trips and this will be suitable for the ones who can afford the same and the lifestyle is achievement oriented in nature (Parment, Kotler& Armstrong, 2016)
Behavioral Base	This is for the luxury convenience along with the expectations of the customers are high in nature which will be appropriate for the overall profitability of the firm in an effective manner (Tanner & Raymond, 2015)
Geographic Base	The major target segment is inclusive of the urban individuals in the entire economy and the individuals who are being targeted in the respective aspect are the middle aged and the old aged individuals as the young generations do not have the capability to spend so much on the exclusive club (Baker, 2016).

Bases of Segmentation	Target Segment (First Class)
Travel and Tourism Industry Base	The expectations of the customers in the first-class segment is really high along with the image of the customers is highly positive in nature and this will be suitable for the different business trips as well.
Psychographic Base	These first-class segmentsare basically mandatory for the different business along with honeymoon relate trips as this is not possible for the individuals for afford it on the regular basis as well (Armstrong et al., 2017).
Behavioral Base	The benefits which will be analyzed are the luxury kind of individuals which will be helpful for gaining huge growth and profitability in the entire market
Geographic Base	There are selected kinds of international flights for the specific and niche group of individuals in the entire market. The density which will be targeted by the AirAsia is inclusive of the urban and the age is inclusive of the both middle-aged and the old aged group of individuals in the entire market (PhilipKeller, 2017)

According to Achroll& Kotler(2014), positioning is defined as the selection of the marketing mix which is most suitable for the target market segment effectively and appropriately. Furthermore, in business and marketing strategy, the positioning strategy plays a major role along with refers to the different perceptions of the customers in the market in relation to the different brands which are competing in nature. The positioning is referred to the process of proper establishment of the image or the identity of the brand or the product wherein the customers perceive it in a certain manner.

As far as the brand is concerned of AirAsia, the respective airways try to provide the different kinds of hassle free experience to the different customers in the market effectively. AirAsia has tried in positioning themselves in such a position wherein they are healthy in their approach in comparison to the other peer competitors in the market effectively. The main advantage which is being gained by AirAsia is that the company tries to position themselves in various kinds of levels such as providing economy and budget airline services along with providing the first-class services to the premium customers in the market as well (Achroll& Kotler, 2014).

This is essential in nature for AirAsia to develop the positioning strategy as per the marketing mix which will be helpful in managing the overall effectiveness of the firm in an efficient manner. The different core elements of the marketing mix are inclusive of the product, price, place along with promotional activities which will be helpful in managing the different activities in an appropriatemanner.

Product: This is the major element of the marketing mix wherein this can be seen that this relates to the service of the travelling by flight along with the consumption of the products consumed during the flight effectively. There are different class in the AirAsia Airlines in which this can be seen that economy or budget class is inclusive of the different kinds of food, however the other subsequent classes are inclusive of the more comfort provided to the different individuals who travel by such airlines (Achroll& Kotler, 2014).

Targeting and Positioning Strategy

Price: This is the other respective strategy which is being pursued by AirAsia and this differs in different kinds of customer segments effectively as well. For instance- the economy class of AirAsia is the cheapest and budget airlines and there is no such comfort provided in the economy class like premium class or first class. There are different specific kind of variables which impacts the pricing strategy of AirAsia which as the structure of the different kinds of discounts along with the residual values.

Place:This is the element in which this relates to the location of the purchase of the different kinds of products and services. The AirAsia services are mainly distributed to the different individuals through online channel of sales along with organizational and individual 3

Promotion: This is the other element of AirAsia wherein this can be seen and analyzed that the slogan or the tagline named “Now Everyone Can Fly”. The company uses the set of different marketing channels such as social media and other advertising channels which will be helpful in appealing to the different customers.

The branding plan is essential in nature as this helps in differentiating the company from the different other competitors in the market. The consistent along with strategic kind of branding helps in leading to the ability of the company to separate from the competitors and create a strong brand identity in an efficient manner.

Purpose and Mission of AirAsia	The mission of AirAsia is to attain the lowest cost so that all the individuals can fly efficiently. The purpose of AirAsia is to provide the different flyers with safe along with caring kinds of flying with the respective airlines in an appropriate manner. the vision of the AirAsia Airlines is to provide the customers with proper and delightful kind of experience at a low budget and this will be helpful in increasing the overall revenue of the company in an effective manner.
Statement of Brand Position	AirAsia helps in providing the different low, medium and high-income group customers with comfortable flight with low budget and prices which is affordable by all the individuals effectively
Unique Value Proposition	The unique value proposition of AirAsia is to allow the different customers with budget flight and this will be beneficial for the company as this will help them in increasing their revenues and profit effectively
Proof of the Claims	From the different surveys, this can be analyzed that AirAsia have been awarded as the cheapest airlines in the entire competitive environment. The New York Times has described the AirAsia Airlines as the pioneer of the low cost travel in entire Asia and this has helped them in increasing their overall effectiveness
Audience Promise	The promise which have been made to the different audience travelling with AirAsia Airlines is inclusive of the different kinds of other experiences in the other first class and premium class departments in an effective manner.
Messaging Tone	Persuasive in messaging tone as the Airlines have been able to convince the different customers in the market with the different kinds of recognitions and awards which have helped them in becoming successful
Elevator Pitch	The AirAsia Airlines tried to provide the different customers with the different kinds of services such as providing budget flights at low cost and providing all the income level customers with proper services which is effective in nature for gaining more competitive advantage in comparison to the other competitors in the entire market
Tagline	Now Everyone Can Fly

Conclusions

Therefore, this can be concluded that STP analysis of AirAsia have been taken into consideration in the entire report. The segmentation, targeting along with positioning have been done which helped in managing the overall success of the firm in the entire competitive airlines market. Furthermore, the branding plan has been done which helped in managing the mission, vision along with appropriateness of the same in the entire market effectively.

There are different recommendations which can be provided to AirAsia in order to become more effective in their operations in the future is inclusive of the following:

Firstly, AirAsia needs to target only the business class individuals wherein they can provide them with various offers which will be beneficial for the success of the organization effectively. The company needs to improve their promotional activities effectively which will be valuable for them in improving their overall sales and revenues in an appropriate manner.

Secondly, the extra luggage allowance is required to be started by AirAsia Airlines as this will be beneficial for the overall convenience of the different passengers in an efficient manner. By expanding their sponsorship of business of AirAsia, this will be helpful for the overall growth of the firm in a suitable manner.

Thirdly, the branding plan is required to be changed wherein the major customer base which should be inclusive of the different young generation along with aged individuals in the organizations should be targeted which will be suitable for the overall success of the firm effectively.

Lastly, the segmentation is required to be diversified with application of the differentiation strategy adopted by AirAsia Airlines as this will be beneficial for the overall success of the firm and this will increase in the number of customers in an appropriate manner.

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