Upon the case study that provided by CNN and research from own, we can understand that within a market it shows that all consumers have different tastes and different needs and requirements. As a result, particular markets can usually be further divided into discrete segments. Meanwhile, target segments it can be divided in three segments which are demographics segmentation, geographically segmentation and psychologically segmentation. In conjunction, that products and services can be developed for each part of the market base on each segment to closely aim at satisfying each consumer group.
Somehow according to the case study provided, target segments for the SIA’s new budget carrier, Scoot airline uses two forms which are psychographic segmentation and demographic segmentation to divide up the market for its services. In demographic segmentation, Scoot airline consists dividing into the group of age, gender, occupation and income of their consumers. On the other hand, psychographic segment, Scoot airline aslo identifying their business by social class, lifestyles, opinions, interests, behavior and attitudes of their consumers.
Airline Research Essay Example
Somehow, segmentation have given SCOOT airline a better understanding of its consumers, the services they require, where and when they want those services and how they would prefer to pay for them. Which upon the information of Scoot airline provided at their web page “About Scoot” have been explain their business as were “we’re an airline for the young, the young-at-heart and the value seeking. People who remember that travel is all about discovering, connecting, experiencing, and enjoying. ” About scoot. (2011, November 1)
Scoot airline segments its market for demographic and psychographic is due to the current young consumers which age group around 18 years old to young adult 30 years old, lifestyle and interest are always wanted and craving to enjoy their life by using their minimum spent to explore, experience and discover as much they can. Mainly they are leisure travelers and concern on price conscious.
Accordingly, all these are consumers need and the proportion of consumers who have those needs. In conjunction, Scoot airline ake this opportunity to develop an offer for consumers a new non-stop routes from Malaysia with a low fares long-haul travel to Australia, Japan, China and ultimately the world for the first year. About scoot. (2011, November 1) Target segmentation therefore enables Scoot airline to maximize the efficiency of its marketing efforts by moving the company to use a different strategy for each market segment. Question 2 Base on research, as a market develops, currently consumers have been become more experienced and discerning and look for more benefits from the products they choose.
However, Scoot airline define their big idea for product is “Save on the frills, spend on the thrills”. Fly with Scoot is pay whatever you want which mean you aren’t subsidizing the choices of others. On the other hands, whichever everything you save, you can spend on your holiday. Meanwhile, Scoot can get the lowest cost for long-haul air flight. The save frills of SCOOT airline strategy will allow them to keep average economy fares for 40% lower than legacy carriers, which in the Asia offering sees the addition for several frills including complimentary food, drinks and check-in luggage.
By the way, Scoot may let you customize the experience which suits your needs too. Consumer can buy just a seat, or add extras, from get a tasty meal to a great entertainment, get an extra large seats extra heavy baggage and bulky equipments which all of these choices is on your own. Somehow, Scoot wanted to make it easier and convenient and they have been bundled all those option together with a funky-named as “Fly, Flybag, Flybageat, ScootBiz”. Which just one clicks and enjoy a discount, compared to selecting the extras individually.
Fly with Scoot can get a seat which they assign one for you, or select the exact location you want. Somehow, Flybag with Scoot can get a benefit of fly, plus 15kg of checked baggage allowance. Moreover, all the benefits of FlyBag plus one meal plus a standard seat choice, which are all less than buying them separately. Scoot airline which also offer for those business class passengers. They can get comfy leather seating with 38 inches to spread your legs and up to 2 meals are offered in this premium cabin.
Business class passengers can select their seats, haul more luggages in the belly and drink as much as they want. It is invented with the intention of making a simple and convenience lifestyle for business user. For the additional service, passenger can rent an iPad tablet as fully loaded with awesome entertainment. Scoot airline average price for a flight from Malaysia to Sydney it will be RM379 each way, for the most basic seats which not included any frills on this for somewhat long flight. This unbundling price most suitable for those young adult who wanted enjoy their life by using their minimum spent.
Somehow, according to fully package ticket cost for ScootBiz who enjoy for more comfy on travel transport, it will be about RM999 each way. Scoot airline distribute their channel mainly by travel agents and internet booking. The company have also made good placement in search engine, when searching using keyword ‘Scoot airline’ or “fly scoot”, it will appear on top list. Besides, Scoot airlines itself have a blogspot for consumer to know more on their business and present in social network website Facebook. Thru social network website, Scoot airline can also promote its business on the internet.
Question 3 To create Scoot airline positioning in this market, branding strategy can divided into 2 categories, which are to create awareness of Scoot airline as well as an advertising campaign. Long term objective for Scoot airline is to become the leading brand in Malaysia among young adults aged 18 to 30 years old in 5 years time. Drive brand excitement to a larger base comprising to reach out to young working adults or youth. In short term is to increase awareness among young adults among aged 18 to 35 years old from 1st October 2012 to 30th September 2013.
Besides, it also to increase sales by 20% among young adults aged 18 to 35 years old from 1st October 2012 to 30th September 2013. Advertising concept of Scoot airline. It is Scoot airline unique attitude, the attitude that underpins the whole company and service culture. It ‘s an amalgam describing our values, expectations and outlook such as being engaging, fuss free, reliable, contemporary, friendly, different. For integrated communication marketing strategy of events and promotions are important in establishing the campaign because it assures that maximizes the impact on the targeted audience.
This special offer of no surcharge baggage just while people buy the flight ticket during the road show only, but is chargeable after the road show. To create a huge awareness of Scoot airline in Malaysia, above the line (ATL) advertisements will be disseminated in different channels via print, outdoor advertisements, electronic, and lastly broadcast. For print advertisement, uncontrolled media is applied, which are newspapers and magazines. Both English and Chinese language newspapers and magazines will be focused on.
Advantages of applying newspaper such as reaching a massive number of people in a given geographic area, flexibility in deciding the advertisement size and placement within the newspaper, and exposure to the advertisement is not limited. On the other hand, using magazines allow for better targeting of audience, high reader involvement, and has better quality paper that permits better color reproduction, relatively long advertisement life and repeated advertisement exposure. We will be choosing The Star, The Sun, New Straits time and Malaysian Reserve for English newspaper.
Mandarin newspaper will be China Press, Sin Chew Jit Poh, Guang Ming Daily and Nan Yang Sang Pau. For english magazine will be Business Today, Info Today, iproperty. com. my. Outdoor advertising includes billboards and transit advertisements. These methods are used because they have 24 hour exposure, geographical flexibility, gain immediate attention, creative flexibility and serve as a reminder message. 2 advertisements on billboards will be located at 2 highways: East Coast highway (near Terengganu) and North- South Highway (near Malacca). Transit advertisement will be wrapped around the external of Star-line LRT.
Electronic advertising is the Internet advertisements. Internet advertisements are used because they have interactivity capabilities, low cost flexibility to change, borderless market, creative flexibility, wide exposure and speed. Besides Scoot’s webpage, its advertisements are also present as a banner at hotmail, Gmail and yahoo mail pages because most of the target audiences will check their mail every day. For broadcast advertisement TVC commercial, the advertising awareness campaign of Scoot airline begins in October 2012 and ends in September 2013, which last for 12 months.
TVC 30 second will be placed in a flighting way. TVC it usually being used to advertise products that consumers will go through the website to book. Even though the price of advertising in this medium is high, but the audio-visual ad broadcasted in it can help to educate target audience drive into Scoot website. Question 4 Possible challenges that Scoot airline will be facing is their biggest competitor Air Asia. Between this two brands Air Asia and Scoot will be occur big contradict of price war. In Malaysia market, anyone who doesn’t know Air Asia it must been living in a cave.
Air Asia has grown by leaps in bounds in just ten years. The brand is now visible on English Premier League jerseys, been voted the World’s Best Low-Cost Airline in 2009 and 2012 and is the title sponsor of the Australian Moto Grand Prix. Challenges of Scoot airline have to face the comparison of price between Air Asia. Air Asia low cost airline have been build a strong rapport for Malaysian. Malaysia consumers will be time to time keep track on Air Asia promotions and plans, while consumer plan for a trip the main airline bounds out in their mind set is Air Asia.
Although the levels of comfortable seat are not so recommended but Malaysian consumers do not mind on Air Asia shortcoming as long as the flight ticket they buy is cheap enough. Between the price war, Scoot has to create a top of mind to outbid Air Asia. Besides, Scoot airline will be facing the frequency flight time challenges which their competitor JetStar Airway and Air Asia are always provide different flight time for passengers. Competitor flight time choices are much more for passengers to choose, objective by having much choices of flight time is to let consumer more convenient.
Especially festive season they will have more flight time to choose. For example, date 11st February 2012, 8. 50 a. m. JetStar Airway provide 5 selection for customer to choose. In day time they have approximate 15 selections. Below image 1. 1 is an example of JetsStar Airway frequency time flight. [pic] Image 1. 1 – JetStar Airway flight time frequency Moreover, even we know that Scoot airline will be provide a lots of personal services such as extra iPad rent out for passengers while there are in the flight but Air Asia is always providing end to end convenient service to our Malaysian.
However, end to end convenient service is Air Asia has a service which included air bus transportation to airport while consumer doing their flight booking. Air Asia have such service is because Malaysia airport is far from city and it is not convenient passengers to reach the airport if they have no car. All the above challenges mention Scoot will be facing if its airline come to Malaysia. Scoot have to create a big top of mind to grab Malaysian mind is the price war between Air Asia. Question 5 (A) According to (Arah Pendidikan Sdn. Bhd. (Ed. ). (2002).
Unit 2: marketing planning and organization), The American Marketing Association defines marketing research as “the systematic gathering, recording and analysing of data about problems related to the marketing of goods and services”. Crisp has defined marketing research as “… the systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing”. Accordingly, there are a lots of organization described market research as product orientated. It means that they develop a product and then look for a market to sell to.
For upon the cases study, Scoot airline is considered a market orientated. It is because the whole organization focuses on the needs of its consumers. It is therefore essential that it identifies and anticipates changing consumer needs before the development of new products. Meanwhile, market research have been added a value to business for Scoot airline’s by identifying consumer’s needs. It helps Scoot airline to plan ahead. For example, looking at what products or extensions should develop and for whom. It focuses the business on the needs of its consumers.
An organization which has market research it may improve its competitive advantages from the research data they get from research agency or did by own. In a way for Scoot airline to improve overall sales in the market, Scoot airline have to be always looking for ways to strengthen its own portfolio. New brand service as like Scoot airline which is still new for Malaysian consumer, in order to reduce risk for an organization market research is the good way. Question 5(B) New brand as like Scoot airline which wanted to develop at Malaysia market, they should commissioned primary research.
Primary research may gather firsthand to answer questions that are specific to the project. Although primary research is often time-consuming and expensive, but it is considered as a reliable source of information because it is directly from the consumer and is specifically designed to meet the objectives of a project. Therefore, collecting primary data have a few of different number to collect. Somehow if hired agencies to help out, they will employed to collect data using. For example, street interviews of a questionnaire.
This is a systematic list of questions that obtain feedback from the consumers. Moreover to develop Scoot airline which successful to bring in Malaysia market, Scoot used various methods of primary data collection. Primary market data may involve qualitative research or quantitative research. Both types of data are valuable in understanding what consumers want or need. Qualitative research is a research method used to gather general information, where precise results are not necessary. Moreover, the results are expressed in words.
There are several types of qualitative research, such as focus groups, field observation, in-depth interviews, Delphi studies, and case studies. It is a data which more concerned about opinions, attitudes and feelings. It may gather from a large sample of respondents which come with numerical form. Mostly qualitative research establishes conversation with consumers. From qualitative research, it prompts consumer reaction to. Besides, it also help Scoot airline to get the information from consumer to determine their target preference. Sanchez (2006) point out that “quantitative research generates tatistics through the use of large-scale survey research. ”
According to Bobbit and Sullivan (2005), quantitative research is a research methods used when specific results are necessary and are expressed in numbers or statistics. From the quantitative, normally it use of scales, so numbers get associated with a particular meaning. For example, 1 to 7 of evaluation scale, it can be mean mean that 1 is “not satisfy” and 7 are “very satisfy”. In conjunction, the business itself needs to understand those numbers which provide by consumers.
In addition, Scoot airline which also used secondary research which is existing research that has already been collected by other organizations. Somehow, with the beneficial of secondary research are much quicker and often less expensive compare with primary research. However, those sources of secondary data it may include books, journals, internet and government statistics. Market research agencies collect a range of data which they process and use to provide organizations like Scoot airline with research.
Qualitative research of focus group, Scoot airline used it to show consumers new idea airline of low cost long-haul launch at Malaysia market. Somehow, focus groups may capture the attitudes and feelings of consumers towards the new airline come into Malaysia. This primary research helped Scoot airline to find out how about a new product suggestions could be developed and still fit in Malaysian consumer. It helped Scoot airline to establish what consumers were mostly looking for in terms low cost as well as services that can provide during flight time.