QUT Real World Brief: Air Asia
- 1. Personalise your flightexperience
- 2. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with The Team Jordy ● Advertising Problem ● Consumer Profiles ● Key Insights Bronte ● Media Objectives ● Media Strategy ● Message Strategy Tayla ● The Big Idea ● Advertising objectives ● Advertising strategy ● Goals ● Why it works Emily ● Campaign Timeline ● Budget ● Looking forward
- 3. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with SWOT Strengths Weaknesses ThreatsOpportunities Website Interface Negative Customer Reviews Low Cost Model Online e-ticket system, no cost of issuing physical tickets Leader in low-cost carriers across asia particularly Malaysia Competitors: Tigerair, Jetstar, Scoot, similar pricing structure Competitors do not advertise in travel blogs AirAsia berhad (AIRASIA, 2014) Slideshare.net (2016)
- 4. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with There is a lack of awareness amongst consumers in regards to ancillaires and their exclusion in ticket pricing, as such Air Asia is missing out on valuable revenue. Advertising Problem Price High Low Low Quality High Quality
- 5. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Target Market 18-39 years old Australia-wide Low/Medium Disposable income Socially active and influenced Price Conscious Millennial Gen: Opened minded / Open to change Singhal, M. (2013) Academia.edu (2016)
- 6. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Maldonado, Yasmin. "5 Different Types Of Travelers | Affordabletours.Com Travel Blog". Blog.affordabletours.com. N.p., 2015. Web. 1 June 2016.
- 7. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with The Budget traveller - Blogger, Hobby orientated traveller, Social worker - Frequent Traveller/ Budget Traveller - Altruistic and Opened Mind (does not like to ‘waste’) - Heavily active online - - Meal Plans, Hot meals - In-flight entertainment - Quiet Zone
- 8. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with The Group - Groups of People - Carefree/ Responsibility-free, Post-High school, Short-term minded - Low Disposable Income, Parental Income - Group Decision-making, mixed genders, all or none - - High Flyer - Meal Plans, Hot meals - Pick a seat - In-flight entertainment - Extra baggage (overseas purchases)
- 9. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with The Adventurer - Single/ Dual Traveler (meeting a friend overseas) - Non-tourist reasoning, Action-orientated - Low Disposable Income, willing to ‘rough it up’ - Outgoing, Laidback, Carefree - Meal Plans, Hot meals - Pick a seat - In-flight entertainment - Extra Baggage
- 10. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Key Findings ● Airlines adopt price partitioning to seek further revenue due to poor economy ● Charging a fee for what used to be free often outrages consumers ● Pricing bundling is the best way to meet the varying needs of the travelling public ● Preference for particular services is increased when there is a personalised value proposition. ● Important to determine what ancillary creates the most value to individual consumers ● Swinging the power from the company to the customer, makes consumers feel in control of their purchases ● Electronic goods ask you to “accessorize” with various different gadgets - consumers respond better (don't view it as an extra) ● Customers are sometimes unaware of extra fees- websites will need to be customised to solve this issue (O'Connell & Warnock-Smith, 2013) (Fruchter, Gerstner, & Dobson, 2010) (Vandermerwe, 1997)
- 11. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Key Insight Charging a fee for services that were previously free creates outrage amongst young Australian Consumers who like to be in control of their purchase decisions. (Fruchter, Gerstner, & Dobson, 2010)
- 12. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with The Big Idea To implement a clear distribution infrastructure of ancillaries by custom designing the checkout page, creating an interactive experience for customers to personalise their own flight experience, as well as increasing awareness of the ancillaries by crafting three relatable brand Characters.
- 14. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Advertising Objective Is to generate awareness of ancillaries pre-flight and change negative connotations surrounding “add ons” currently being held by young Australians aged 18-39 with in a one year period.
- 15. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Goals - 20% Rise in Ancillary revenue by December 2017 - 100% ROI in one year - Generate awareness of extras pre-purchase & post purchase - Increased engagement on website through conversions from the social media adverts
- 16. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Advertising Strategy Phase 1 - Re-Design Phase 2 - Awareness/ Engagement Phase 3 - Direct Marketing/ Engagement Phase 4 - Campaign Effectiveness
- 17. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Phase 1 - Re-Design ● Implementation of interactive design on the existing website ● Check-out will undergo a redesign ● New Check-out will encourage customers to interact with the ancillaries ● Customers can Visualize their flight experience ● Selection of a character (personal experience) ● The more ad ons, the happier the Character & the better the flight experience
- 18. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with WebsiteMockup
- 19. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Phase 2- Pre-purchase Awareness ● Rolls out as soon as re-design is implemented ● Creates Awareness & encourages click through rates to website ● Series of sponsored social media campaigns over 1 year: - Facebook - Instagram - youtube - Selected Travel blogs ● Social posts will use the three different types of travellers - The Budget Traveller - The Group - The adventurer ● Electronic emails also sent out to existing customers to inform creates emotional/ relatable connection
- 20. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Facebook Sponsored Ads
- 21. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Instagram Sponsored Ads
- 22. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with YouTube Sponsored Ads
- 23. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Phase 3 - Post-Purchase engagement ● Post purchase touchpoints with the customer ● Re-informing what they have already seen ● EDMs sent out reminding people who have already purchased, to select ancillaries before flight ● Creates engagement - Consumer engages with the new checkout
- 24. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Phase 4 - Campaign effectiveness ● The effectiveness of the Campaign will be analysed/ measured ● If targets are not reached by 1 year - Contingency plan will go ahead
- 25. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Why it works ● Although there are negative connotations surrounding price partitioning it works because; - Increases revenue - Meets varying needs of the travelling public - Allows customization ● “Customers respond to dynamic and personalised offerings” - Preference for particular services is increased when there is a personalised value proposition - Customisable flights - Relatable brand character ● Campaign fits with the target market who utilise social media ● Interactivity on a website increases engagement and user experience ● Interactive elements trigger emotional connections creating lasting impressions on an individual's mind. (Nason, 2009) (O'Connell & Warnock-Smith, 2013) (Charrier, R. 2016) (Moon, 2016)
- 26. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Key Message “If you’re able to personalise your holiday, you should be able to personalise your flight experience.”
- 27. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Message Strategy Our message strategy is to appeal to the customers need for a dynamic and personalised offering, instead of simply asking for them to “pay for extras”. ● Generate awareness of the new checkout experience for existing customers ● Attract new customers who might have been previously turned off by negative experience. (O'Connell & Warnock-Smith, 2013)
- 28. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Media Objectives ● Reach 60-70% of the target market ● Aim to reach the consumer at least 3 times over the duration of the campaign as recall is higher after three points of contact. (Kelly & Stewart, 2015)
- 29. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Phase 2 - Media Selections Sponsored Ads on Social Media ● Cost effective ● Consumers are drawn to this media (93% accessing everyday) ● Able to analyse the channels where consumers are seeing our ads ● Travel blogs are specifically targeted to travellers (looking for cheap airfares) ● Lonely Planet, Our Awesome Planet, Out of Town, Pinoy Adventurista (Charrier, R. 2016)
- 30. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Phase 3 - Media Selections Post Purchase EDM ● Cost effective ● Nurtures existing customer ● Cross-sell other offers ● Builds brand loyalty (Experian Marketing Services, 2013)
- 31. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Campaign Timeline Australians travel abroad in two peak seasons: June and December. Campaign will run for: ● One year ● Two eight-week periods of social media campaigning leading up to peak holiday seasons. ● Benefits of capturing all travel seasons and holidays. (Australian Bureau of Statistics, 2016)
- 32. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Media Scheduling Flighting Schedule: ● Used for seasonal campaigns ● Linked to the purchasing cycle of the consumer ● Allows greater frequency during period of the campaign How will it work?: March-May: 8 weeks of scheduling: medium > heavy > light August-October: 8 weeks of scheduling: medium > heavy > light (Kelly & Stewart, 2015)
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- 34. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Measurements of Success Average ancillary purchase: before, during and after. Click throughs to the website from the various ads. Website visits and interactions. -number of pages visited -time spent on pages
- 35. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Predictions ● We will make 100% ROI within the year. ● There will be a 20% rise in ancillary revenue by December 2017 ● Consumers will be more aware of ancillaries both before and after purchase and they will be more engaged with the AirAsia website.
- 36. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Contingency Plan If halfway through the campaign, around June, ancillary sales haven’t increased by at least 20% then we will make pre-made ancillary bundles available for purchase on the website. They will be added innocuously to the side of or under the ticket information section in the checkout, as well as be advertised in the post-purchase eDM’s. These bundles will contain four or five of the most popular ancillaries to our target groups. The bundle will have a 10-15% discount off the total price, this will make them more appealing to the target markets. This plan still focuses on the increase of ancillary purchase while simultaneously easing consumers perceptions of high costs and their concerns for saving money.
- 37. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Further Recommendations Once a positive outcome has been reached at the end of the campaign, we encourage the client to consider: ● Bring to life the cartoon characters created as “brand ambassadors” for inflight videos, mascots at travel expos and television ad campaigns to make them household names ● Put more money towards the use of print media such as posters in the travel magazines placed in travel agents as it has been shown that when print and digital medias are combined, lifts in sales and ROI are visible sooner in the campaign and recall among consumers is higher, compared to a campaign which has only digital media (Mulvey, 2013).
- 38. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with References 4102.0 - Australian Social Trends, Sep 2010. (2016). Abs.gov.au. Retrieved 21 May 2016, from http: //www.abs.gov.au/AUSSTATS/[email protected]/Lookup/4102.0Main+Features20Sep+2010 Advertising on Instagram | Instagram for Business. (2016). Business.instagram.com. Retrieved 26 May 2016, from https://business.instagram.com/advertising/ Chung, N. & Koo, C. (2015). The use of social media in travel information search. Telematics And Informatics, 32(2), 215-229. http://dx.doi.org/10.1016/j.tele.2014.08.005 Facebook Ads. (2016). Facebook for Business. Retrieved 26 May 2016, from https://www.facebook. com/business/products/ads/
- 39. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Fruchter, G., Gerstner, E., & Dobson, P. (2010). Fee or free? How much to add on for an add-on. Marketing Letters, 22(1), 65-78. http: //dx.doi.org/10.1007/s11002-010-9112-3 Mulvey, T. (2013). Predicting Marketing Campaign Results. Business News Daily. Retrieved 27 May 2016, from http://www. businessnewsdaily.com/5076-marketing-predictions.html Understanding Seasonality in Travel: Maximising digital strategy in multi-channel marketing. (2013) (1st ed.). London. Retrieved from http://www.experian.co.uk/assets/marketing-services/white-papers/wp-understanding-seasonality-in-travel.pdf Maldonado, Y. (2015). 5 Different Types of Travelers | AffordableTours.com Travel Blog.Blog.affordabletours.com. Retrieved 29 May 2016, from http://blog.affordabletours.com/5-different-types-of-travelers T R I B E. (2016). Tribegroup.co. Retrieved 10 May 2016, from http://www.tribegroup.co/#nav-influencers Charrier, R. (2016). Millennials And Social Media: It's More Complicated Than You Think. Social Media Today. Retrieved 19 May 2016, from http://www.socialmediatoday.com/social-networks/millennials-and-social-media-its-more-complicated-you-think Kelly, L. & Stewart, G. (2015). Overview of AMB319. Presentation, Queensland University of Technology. Moon, J. (2016). 15 Websites with Engaging User Experiences. Dtelepathy.com. Retrieved 31 May 2016, from http://www.dtelepathy. com/blog/inspiration/15-interactive-websites-with-engaging-user-experiences
- 40. Create your perfectflight withCreate your perfect flight withPersonalise your flight experience with Nason, S. (2009). The future of a la carte pricing in the airline industry. Journal Of Revenue And Pricing Management, 8(5), 467-468. http://dx.doi. org/10.1057/rpm.2009.1 O'Connell, J. & Warnock-Smith, D. (2013). An investigation into traveler preferences and acceptance levels of airline ancillary revenues. Journal Of Air Transport Management, 33, 12-21. http://dx.doi.org/10.1016/j.jairtraman.2013.06.006 Stabile, M. (2016). The Top 50 Travel Blogs (1st Quarter: 2016). TheExpeditioner Travel Site. Retrieved 26 May 2016, from http://www. theexpeditioner.com/the-top-50-travel-blogs/ Middleton, V. & Clarke, J. (2001). Marketing in travel and tourism (3rd ed.). Oxford: Butterworth-Heinemann, Butterworth Heinemann, Routledge. AirAsia berhad (AIRASIA) : Company profile and SWOT analysis. (2014). (). London: Progressive Media Group. Singhal, M. (2013). An airline for the people: AirAsia will target the large pool of people who have never flown before, offering very low fares. Business Today Vandermerwe, S. (1997). Increasing returns: Competing for customers in the global market. Journal Of World Business, 32(4), 333-350. http://dx.doi. org/10.1016/s1090-9516(97)90016-x "Air Asia Marketing Analysis". Slideshare.net. N.p., 2016. Web. 1 June 2016. "Air Asia". Academia.edu. N.p., 2016. Web. 1 June 2016.