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1Mandala Air Marketing Plan - The Second Life

2Mandala Air Marketing Plan - The Second LifeMandala Air Marketing PlanThe Second LifeMandala Air Marketing Plan - The Second Life3Mandala Air Marketing Plan - The Second Life3Overview :Mandala AirSituation Analysis : Macroeconomic environment4 Cs analysis : Change, Consumer, Competitor, Company SWOT AnalysisMarketing Segmentation, Target Market, and PositioningMarketing goal and objectivesMarketing Strategies and TacticsResources allocation and budgetsControls progress measurement and monitoringComprehensive Mandala Air Marketing Plan FrameworkAnalysis Marketing Objectives Marketing Strategy Implementation Action PlanEvaluation Consumer Insight 123456789Executive summary Mandala Air was once a glorious airline in Indonesia, in January 2011 they stopped their operation due to bankruptcy. Because of the future prospect in Indonesia airline is quite good, Saratoga Group bought 51% share of the airline, pledged with Tiger Airways 33%. Sandiaga Uno, co-founder and chief executive of private equity firm Saratoga Group and Chin Yau Seng, Tigers chief executive, are very optimistic about the Indonesian market and ready to compete with established budget airlines

Mandala Air Marketing Plan - The Second Life4

About Mandala AirMandala Air Marketing Plan - The Second Life5April 17, 1969 Established. The founders were Col. Sofjar, Maj. Gen. Raden Soerjo, Adil Aljol, Maj. (Air Force) Soegandi Partosoegondo, Kasbi Indradjanoe and Darwin Ramli 125May 2011Tiger Airways acquire a 33 % stake, Saratoga Group 51 % of Mandala.Mandala Airlines focus on Low Cost Carrier marketJan 13, 2011Mandala Airlines temporarily stopped flying all of their fleet due to debt problems. 4June 2012Rebranding the new Mandala Tiger Plane Appearance

April 5, 2012First domestic route, based in Jakarta and Medan

April 20, 2012First international destination when it launches the Medan-Singapore route.

May 2012Mandala created a special niche among Indonesia's low-cost carriers by creating an image as a safe airline.

36Situation Analysis : 4 Cs DiamondMandala Air Marketing Plan - The Second Life6EconomySoc-CulTech Market Pol-Leg Change IT is expand very fast, Social Media Revolutions Internet become very popular

Social Media Phenomenon People with high mobility The growth of the aviation industry doubled from Indonesia's economic growth average 20% -21% per year. Low cost carrier (LCC) service more attractive to suck 80% market share.Target of middle-class people of Indonesia increased by 7 million people each year. Aviation Law. The rules on Law No. 1, 2009 on Aviation, Aviation regulation and government policy The increase in aviation fuel pricesEconomySoc-CulTech Market Pol-Leg ChangeSituation Analysis : 4 Cs DiamondMandala Air Marketing Plan - The Second Life7EconomySoc-CulTech Market Pol-Leg ChangeSituation Analysis : 4 Cs DiamondEconomySoc-CulTech Market Pol-Leg ChangeCustomerCustomer more educatedCustomer have many choicesCustomer more demanding and difficult to satisfy.CompanyCompany is value-deciderThe must existing competence analysis for the company.Company have several choices that is go/invest, no no/hold, harvest and divest.Competitor

Macro Economy Indicator DataPopulation240 millionGDP growth (%)6,5 %GDP per capita (US $)3600Exchange rate per US$8500Poverty Number14,6%Macro Economy Indicator DataNet Capital Inflows (Million)22.64 Increase Economic Growth 7 %Indonesias Income Per capita prediction 2030 (US$)10,000Economic Growth ASEAN6,9%Macro Economic Mandala Air Marketing Plan - The Second Life8The Fourth Cluster Driving Growth : food and beverages industry, Textiles, textile products, and footwear industry, electronics and electronic components industry, and transportation equipments and automotive components industry. Competitor Analysis Mandala Air Marketing Plan - The Second Life9

Airlines in averageCompetitor AnalysisExisting Airline Value CurvePriceFoodLoungeChoices of Seat ClassHub ConnectivityLow PriceFastDeparture from CitiesComfortableBaggage Included with Ticket Price

Airlines in averagev

Market ShareMandala Air Marketing Plan - The Second Life11AirlineFrequency shareCapacity shareDomestic routesLion Air38.9%45.5%92Garuda Indonesia20.9%21.6%38Batavia12.7%10.7%55Sriwijaya Air9.8%8.8%39Merpati Nusantara7.4%5.9%41Mandala Airlines3.0%3.0%17Indonesia AirAsia1.6%1.8%6Source: OAG Max Online for w/c 10 January 2011SWOT Matrix AnalysisStrength Shares own Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit 15%, and the old shareholders Cardig and Indigo (1%) Safe and reliable flights WeaknessesService resource is limited by lower costs Limited human resources Situation.Brand is vital for market position and developing it is always a challengeMandala routes are limited.OpportunitiesThe growth of the aviation industry average of 20% -21% per year.Service low cost carrier (LCC) more attractive to suck 80% market share.Increased tourism sector

TreatsHigh fuel price decreases yieldAviation regulation and government policyThe increase of in the customer's requirements of higher-quality products / services

Mandala Air Marketing Plan - The Second Life12

Strength/ opportunities (SO)Increase Market Share Increase Sale & Revenue Expand current customer rewards program to build customer loyalty.Weaknesses/ opportunities (WO)Build Strong Mandala BrandIncrease the RouteFocus on service, speed and departure point-to-point.Strength/ Treats (ST)Expand brand recognition as top low-cost air carrierFocus on the importance of safety, security, and service.Offer the most competitive priceWeaknesses/ Treats (WT)Increase load capacity Initiate employee rewards program for productivity and customer retention.Create expanded strategyMandala Air Consumer Insight Mandala Air Marketing Plan - The Second Life13Within a year, have you ever travel?Customers Profile1-3 time/year4-8 time/year8-12 time/year>12 time/yearDomestic Destination International Destination 100%YESHow many times a year do you travel?What was your destination?123Mandala Air Marketing Plan - The Second Life15Airlines ProfileWhat kind of transportation do you use?For Domestic DestinationInternational Destination1Mandala Air Marketing Plan - The Second Life16Airlines ProfileWhat airlines do you use to travel?Why do you use this airlines?79 % because of the Price75 % because of the promo65% because of the Route Hub57% because of the airlines provide food57 % because of the punctual time25% because of the comfort8 % because of the Lounge availabilityDo you aware about the type of the plane? (ex. Airbuss, boeing etc)Where do you Buy the tickets?71% Online | 29% Travel AgentAirplane100 %2345Mandalas Brand AwarenessYes100 %Have you heard about Mandala Air?Have you flight using Mandala Air?69% Yes | 31% No18% Good Service18% Good Pilot (Landing)14% Easy & quick to do reservation online14% Clean and Comfort16% Fare Price14% PunctualWhy?Have you flight using Tiger Air?36% Yes | 64% No25% Service Not Good18% Using old Plane18% Bad Interior12% Bad TurbulenceWhy?17% Cheap Price6% Good ServiceAre you aware that now Mandala is operating again?NetnographyMandala Air Marketing Plan - The Second Life18

The Power of STP to Win The Mind ShareMarketing Strategy & Competitive PositioningMandala Air Marketing Plan - The Second Life20TravelersPromo LoversShopaholicValue Added SeekerValue Added Seeker Low Price High ValueSegmentationTargetingPositioningMarketing Goals & ObjectivesMandala Air Marketing Plan - The Second Life21Communicate the New Mandala Values and CommitmentBuild a strong Mandala BrandOpen new route with lower costsIncreaseMarket ShareIncrease Sales & RevenueCreate Mandala New ExperienceMarketing Mix 4 Cs Strategies and TacticsMandala Air Marketing Plan - The Second Life22Set the price to be affordable. Below Full Service and average Low Cost Carrier Airways.Open New Route, new route Full Service Route

Travel Agent, Online, Smartphone Application

360 degree Communication

CostConsumerConvenient Communication consumerMandala Air Marketing Plan - The Second Life23

Model Primarily point-to-point routes

Locations Mandala operated scheduled services to 3 international and 17 domestic destinations

Focus Cities Daily flight between Jakarta and Medan. International destination : Kuala Lumpur in Malaysia & Medan-Singapore.

Indonesia : Jakarta - Soekarno-Hatta International Airport [Hub]; Medan - Polonia International AirportSingapore : Singapore Changi AirportMalaysia : Kuala Lumpur Kuala Lumpur International Airport

Other routes that have been approved include Jakarta-Singapore and Singapore-Denpasar (Bali)-Jakarta.

Terminated destinationsHong Kong - Hong KongIndonesia - Balikpapan, Banjarmasin, Batam, Bengkulu, Denpasar/Bali, Jambi, Kupang, Padang, Pangkal Pinang, Pekanbaru, Semarang, Surabaya, Tarakan, Yogyakarta.Macau - MacauAverage Stage Length : 5 hours

Consumer New Route Mandala Air Marketing Plan - The Second Life24

Situational AnalysisStrategy Clock (Pricing Strategy)

Mandala

In-flight serviceMandala Airlines is give choices of seats class service airline. It had a buy on board service offering food and beverages for purchase by passengers, but no in-flight entertainment. Seats were reserved and allocated during check-in. Free in-flight magazines or newspapers and blanket were provided during flight.Mandala Airlines had a baggage are included in the flight price about 20 kilos. Priority passengers also benefit from better seat locations (at the front of the aircraft), free lounge access and free food and beverages (both in lounges and during flight).[Ancillary Fees : Reservation changes, baggage limitations, frequent flyer point sales, concession Convenient (Ticketing Strategy) Mandala Air Marketing Plan - The Second Life26Mandala Air Marketing Plan - The Second Life27

Marketing and Brand Position Mandala Air Marketing Plan - The Second Life28Customer Leadership ClarificationCore Area Marketing VisionMandala Air = LCC Airline IconMarketing Expertise & Organization Product Leadership Maximize Marketing EfficiencyBrand Leadership PremiumBrand Strategy Platform... Brand TargetValue Added SeekerBrand Essence Everyone already flyBrand PositioningLow Price High ValueBrand PersonalityActive, Dynamic, Modern

Airlines in averagePriceFoodLoungeChoices of Seat ClassHub ConnectivityLow PriceFastDeparture from CitiesComfortableBaggage Included with Ticket Price

v

NEWThe differentiations of Mandala Air than the competitorMandala Value Curve Proposed

Co creation Mandala ExperienceMandala Check and Go

ConversationMandala lovers

Communal ActivationMandala Lovers Near You! Mandala Lovers with You! Mandala Lovers with Community

Campaign Education & AwarenessProduct ExperienceCredibility/ImageRelationshipMedia GatheringPR Activities Mandala Tiger Air Were Back ExhibitionMandala Tiger Air Mobile Booth

Advertisement,TVC @ Commercials TV and YoutubeActive at Social Media, Mandala Tiger Air Mail ListDeveloping affiliate relationships with banksSales : Number of Sales and Profit Brand Equity :Mandala Tiger AirAll you can Fly Sales : Number of Sales and Profit Brand Equity :Mandala Tiger Air360 degree CommunicationThe following table describes how Mandala's marketing program supports its brand position.

Mandala Air Marketing Plan - The Second Life34Alternative RecommendationSocial MediaWebsiteMandala LoversContinue to Stress DifferentiationLeverage Integrated Customer Service SystemTarget Price Sensitive CustomerBrand AmbasadorMandala Air Marketing Plan - The Second Life35Mandala Air Marketing Plan - The Second Life35

PeriodControls progress measurement and monitoring Mandala Airs Marketing Performance Mandala Air Marketing Plan - The Second Life36

thanksAppendixMandala Air Marketing Plan - The Second Life37ChangeMandala Air Marketing Plan - The Second Life38EconomySoc-CulTech Market Pol-Leg IT is expand very fast, especially in communication Social Media Revolutions Internet become very popular Expand the technology of the website (i.e. iPhone apps, etc.) Social Media Phenomenon People mobility is increase The growth of the aviation industry doubled from Indonesia's economic growth average 20% -21% per year. Low cost carrier (LCC) service more attractive to suck 80% market share. Domestic aviation market still needs a lot of planes, at least up to 1,000 units considering Indonesia is an archipelago, while from the side of the plane is still defeated by India, China, even Singapore. Target of middle-class people of Indonesia increased by 7 million people each year. We have a lot of business sectors that depend on the airline business, such as the tourism sector. There are 60 million passengers by 2015 and 75 million by 2020. This opportunity is a good market for Mandala with the concept of low cost carrier. Foreign airlines took the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia. Aviation Law. Airlines or foreign investor will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors. The rules on Law No. 1, 2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors. Aviation regulation and government policy The increase in aviation fuel pricesCompetitorMandala Air Marketing Plan - The Second Life39When the Asean Open Sky enacted in 2015, the national airline to compete with the airlines.Six airlines So Tight Competitors in Asean Open Sky. Three-in-class airline services is a full service Singapore Airlines, Thai Airways, Malaysia Airlines, while three other carriers in the class cost (low cost carrier / LCC) is AirAsia, Tiger Airways and Jetstar Airways.Long haul flight is an trial to get undeveloped market shareDifferentiation from traditional LCC model by adding customer services or operation as full service airline with low fareOngoing industry consolidation has opened up prospects for new routes and airport dealsFull service airlines start cut costs to competeEntrance of other LCCsIncrease in operation cost in producing value-added servicesSystem disruption due to heavily reliance on online sales The increase in customers requirements of higher-quality products/services

CustomerMandala Air Marketing Plan - The Second Life40Customer more educated and have many information to take decision.Customer have many choicesCustomer more demanding and difficult to satisfy.Customer loyalty is decrease because a lot of promotion that offer more benefits.Customer tend to have more than one mobile phonePrice- oriented segment is very big, but have low buying power. CompanyMandala Air Marketing Plan - The Second Life41Company is value-deciderThe others 3Cs must be learned to see the effect to campany.The must existing competence analysis for the company.Base on the existing competence, take the stretch possibilities.Company have several choices that is go/invest, no no/hold, harvest and divest.To decided the choice, depend on company risk attitudeCompetitor Analysis 4PsMandala AirLion AirSriwijaya AirAir AsiaMerpati Nusantara AirlinesBatavia AirCitilinkPT Saratoga Investment Group (51%), Tiger Airways(33%), Kreditur dan pemegang saham lama (16%)PT Lion Mentari AirlinesPT. Sriwijaya AirPT. Indonesia AirAsia.PT. Metro BataviaPresiden DirekturDionoNurjadinRusdi KiranaChandra LieSardjono Jhony TjitrokusumoJoseph SaulMulai Beroperasi17 April 1969, Berenti beroperasi 10 Januari 2011 4 April 201219 Oktober 199920036 September 19625 Januari 20028 Agustus 2008AliansiTiger AirwaysWings Air-SloganPartner Airlines of Tiger AirwaysWe make people flyEnjoy SimplicityJenis KelasBisnisEkonomi-Program Frequent FlierLion Pasport Club-Merpati EasyFlyerLounge PenumpangMandala PriorityLion King Lounge-Websitewww.mandalaair.comwww.lionair.co.idwww.sriwijayaair.co.idwww.merpati.co.idwww.batavia-air.co.idFacebook #fansMerpati airlines # 2.432Twitter #followers@mandalaair #8.917@tigerairways #11.467@tigerairwayssg #14.280@lionairliners # 2.384@SriwijayaairSJ #2.703@Sriwijayaair #1.200@airasiaid #147.745@merpati_info # 5.011@bataviaair #3.242@citilink #18.154Twitter tweets@mandalaair #632@tigerairways #352@tigerairwayssg #1.0630@SriwijayaairSJ #18@Sriwijayaair #230.9296.330288.147YoutubeCitilinkJumlah Armada11722933Kota Tujuan16613687Mandala Air Marketing Plan - The Second Life42PriceBooking 24 April 2012 (7 14 Mei) - pagiMandala AirLion AirSriwijaya AirAir AsiaMerpati Nusantara AirlinesBatavia AirCitilinkJakarta DenpasarPromoRp. 401.000;PromoRp. 500.000;Promon/aPromoRp. 379.000;Eco Promo0Rp. 399.090;EkonomiRp. 643.000;EkonomiRp. 530.000;RegulerRp. 443.900;FlexiRp. 588.000;Eco BudgetRp. 716.900;Businessn/aBusinessn/aEkonomiRp. 698.000;Eco MediumRp. 886.900;Business-Eco PremiumRp. 1.266.900;Denpasar - JakartaPromoRp. 544.000;PromoRp. 460.000;Promon/aPromon/aEco Promo0Rp. 399.090;EkonomiRp. 643.000;EkonomiRp. 530.000;RegulerRp. 443.900;Flexin/aEco BudgetRp. 556.900;Businessn/aBusinessn/aEkonomiRp. 918.000;Eco MediumRp. 886.900;Business-Eco PremiumRp. 1.266.900;Mandala Air Marketing Plan - The Second Life43PlaceReservation byMandala AirLion AirSriwijaya AirAir AsiaMerpati Nusantara AirlinesBatavia AirCitilinkWebsite (online)vvvvvvvTravel AgencyvAirportPhone (call centre)VvvMobileKantor PusatVMandala Air Marketing Plan - The Second Life44PromotionMandala AirLion AirSriwijaya AirAir AsiaMerpati Nusantara AirlinesBatavia AirCitilinkOnline PromotionVisaepaymentBcaVisaBank briBniBiiBank sumselVisamasterVisaMandiriOCBC NISPKlik BcaBCAMandiriNMOVisaMasterPaypalDiscoverAmerican ExpressMandala Air Marketing Plan - The Second Life45ServiceMandala AirLion AirSriwijaya AirAir AsiaMerpati Nusantara AirlinesBatavia AirCitilinkBookingvvvvMy FlightvvvFlight InfovvvHotels & ToursvvTravel InfovvvLoyalty ProgramvvvvCouriervCargovEntertainmentvOnline ShoppingvvCredit CardvSavers AccountvCorporatevvPromosivvvWebbannervvvservicesvvexperiencevcarvasuransivQuick linksvWeb check invAt the airportvMandala Air Marketing Plan - The Second Life46Situational AnalysisAnsoff MatrixProductsExistingNewMarketsExistingMarket Penetration/Consolidation 1 4 Product Development 2 5New Market Development 3DiversificationSituational AnalysisStrategy Clock (Pricing Strategy)

MandalaSWOT Matrix AnalysisStrength Shares owned Mandala Saratoga Capital (51%), Tiger Airways (33%), concurrent credit of 15%, and the old shareholders Cardig and Indigo (1%).Tiger Sandiaga and prepare capital of U.S. $ 250 million.Tiger Airways business model adopted. Low-cost airline Mandala operated scheduled services to three international and 17 domestic destinations, used a narrow-body fleet of Airbuses.The name Mandala is not changed Safe and reliable flights Tiger Airways, together with its associated airlines, operates a fleet of 32 Airbus A320 aircraftWeaknessesService resource is limited by lower costs Limited human resources Situation Could not handle irregular. Government interference and regulation on airport deals and passenger compensation.Non-central location of secondary airports.Brand is vital for market position and developing it is always a challengeHeavy reliance on outsourcingNew entrants to Provide the price-sensitive servicesMandala is still not a good name in the public eye since 2011 had been frozen.The plane is still not muchMandala routes are limited.Other companies using the LCC business model too.New Mandala will penetrate the Jakarta-Medan route. As for the international flights will start from Jakarta to Kuala Lumpur, Malaysia.OpportunitiesA. The growth of the aviation industry average of 20% -21% per year.2. Long haul flight to get your trial is an undeveloped market share3. Differentiation from traditional LCC models by adding customer services or as full-service operation with a low fare airline4. Ongoing industry consolidation has opened up prospects for new routes and airport deals5. High fuel prices will squeeze out unprofitable competitors6. Service low cost carrier (LCC) more attractive to suck 80% market share.7. 16 domestic routes and four international routes8. Target the middle class 7 million people each year.9. Increased tourism sector10. 60 million passengers by 2015 and 75 million by 2020.11. Mandala will operate 10 Airbus A320 aircraft.12. Aviation Law. Airlines or foreign investment will still be able to build the airline in Indonesia, as long as the majority of shares held by local investors.13. Expand the technology of the website (ie iPhone apps, etc.)Strength/ opportunities (SO)Increase Market Share Increase Sale & Revenue Expand current customer rewards program to build customer loyalty. Expand freight air portion into former Tiger Airway and Local areasMandala Airlines utilized an electronic ticketing and an e-payment system. The airline had a 24-hour call center and a website for customers to book and pay for tickets electronicallyWeaknesses/ opportunities (WO)Build Strong Mandala BrandIncrease number of pesawataddition RouteImprove efficiency through the use of aircraft AirbussFocus on service, speed and departure point-to-point.Treats1. Full service airlines cut costs start to Compete2. Entrance of other LCCs3. High fuel price decreases yield4. Accident, terrorist attack, and disaster and affect customer confidence5. Aviation regulation and government policy6. Increase in operation cost in producing value-added services7. System Disruption due to Heavily reliance on online sales8. Asean Open Sky enacted in 20159. Six airlines So Tight Competitors in Asean Open Sky (Singapore Airlines, Thai Airways, Malaysia Airlines, AirAsia, Tiger Airways and Jetstar Airways.10. The regulation on Law No. 1,2009 on Aviation, the aviation world investment of at least 50 million U.S. dollars is very burdensome and threatening local investors.11. Foreign airlines also eyeing the market potential of Indonesia, foreign investment in Indonesia will be the toughest rival for local airlines in Indonesia.12. The increase of in aviation fuel prices13. The increase of in the customer's requirements of higher-quality products / services14. Tiger Airways Mandala proposed name is replaced with the name Tiger.

Strength/ Treats (ST)Expand brand recognition as top low-cost air carrier to eliminate competition. Retain low-cost operating strategy to remain competitive.Focus on the importance of safety, security, and service.Focus on the timelinessOffer the most competitive priceWeaknesses/ Treats (WT)Increase load capacity to getmaximum value out of jet fuel.Initiate employee rewards program for productivity and customer retention.Create expanded strategy and growth plan to thwart competition.Reduce the cost of jet fuel that will decrease operational costsMandala Air Marketing Plan - The Second Life49Mandala Air Marketing Plan - The Second Life50

Netnography (3)Mandala Air Marketing Plan - The Second Life51

Netnography (3)