BRAND MANAGEMENT CASE ANALYSIS

LAGUITAN
LEGUA
AIR
ASIA
SDN BHD
 Summary

On 24 February 1981, a Johore Bahru

Company, Coffee Products Sdn Bhd,
D VIEWPOINT
was given : license
a manufacturing
C Tony
under the Fernandes
Industrial Coordination Act
B of 1975 to
Group produce
Chief soluble (instant)
Executive Officer
A coffee powder. With the license, the
company, wholly-owned by
TIME acquired
Malaysians CONTEXT :
the necessary
machinery Year 2007 equipment to
and other
set up a processing plant capable of
producing spray-dried instant coffee
from raw coffee beans.
 I. STATEMENT OF THE PROBLEM:
D
C What branding strategy will be
B implemented by Airasia to strengthen its
leadership position of AirAsia among low
A
cost airlines and intensify its brand identity
in the airline industry?
 I. STATEMENT OF THE OBJECTIVES:

D
C
B To differentiate Airasia’s brand against
competitors and strengthen leadership
position as leading low cost airline within 5
A
years in all countries in the world.
 III. AREAS OF CONSIDERATION
STRENGTHS :
D 1. Open communication with the employees that

C promotes a friendly working environment

2. Uses advanced technology and information
systems for the convenience of the passenger and B
the company as well A
3. Strong Management team
4. Tremendous growth of its passenger load,
command of market share and financial returns
5. Set up own training simulator facilities
6. Purchase of new aircrafts
7. Positive financial returns
 III. AREAS OF CONSIDERATION
WEAKNESSES :
D 1. Implementation of latest technologies that
C requires huge amount of investment
2.Offers no-frill flights which do not include meals B
and lounge facility, online reservation system.
3. Delayed flights due to high aircraft utilization
A
 III. AREAS OF CONSIDERATION
D OPPORTUNITIES :
C 1.AirAsia was the first successful low cost airline
in the Southeast Asian region. B
2. The corporation has enough popularity in print A
and electronic media
3. Ticket-less travel
4. Wide network of routes and destinations
especially places not covered by regular airlines
D III. AREAS OF CONSIDERATION
C THREATS : B
1. There are many LCCs in the region
that also offer low fare.
A
2. Management of cost of fuel
 III. AREAS OF CONSIDERATION
THREATS :
D 5. Local ground coffee is patronized more in the
C country.
6.Some local ground coffee are sold in
significantly lower prices. B
7.Nescafe products were distributed not only by A
Nescafe but also private importers who brought
completely genuine Nescafe products with
identical brand names and denominations but
priced significantly lower.
8.Large marketing and distribution network of
Nescafe brand.
D
C IV. ASSUMPTION
This study did not provide for any assumptions. B
A
 V. ALTERNATIVE COURSES OF ACTION

ACA ACA ACA

D 1 2 3 C
Implementation of
Implementation Implementation of B
A
regular campaigns of brand publicity to create
that offer free or very extensions to
leverage and awareness not only
low cost seats.. integrate in region but all
strengths over the world by
inherent within a
brand to an sponsoring the two
identified but global icons
unmet market
need through
joint venture and
strategic
alliances to
expand its brand
offerings
D VI. ANALYSIS
ACA 1:
C
B
1.
ADVANTAGES
The campaign provides publicity A
2. Addition to its credibility for making good it’s brand promise by
enabling everyone to fly.
3. Increase in profit since free seats are actually offered on
availability where 99% of total passenger are paid on average
 VI. ANALYSIS
ACA 1:

D DISADVANTAGES
1. Delayed flight schedules due to high C
utilization of aircrafts B
2. People may questioned the safety of the
plane since its in a low cost
A
3. Non-refundable fare
4. Baggage restrictions
 VI. ANALYSIS
ACA 2:
ADVANTAGES
1. It increases brand image and publicity.

D 2. An established brand name increases consumers’ interest and

willingness to try new products having the established brand
C
name.
B
A
3. The efficiency of promotional expenditure increases.
Advertising, selling and promotional costs are reduced. There
are economies of scale as advertising for core brand and its
extension reinforces each other.
4. The image of the parent brand is enhanced.
5. It increases market coverage as it brings new customers.
6. It creates additional networks.
7. It enhances the service provided by the original brand.
 VI. ANALYSIS
D ACA 2:
DISADVANTAGES C
1. There is a risk that the new product may B
generate implications that damage the image A
of the core/original brand.
2. Requires a large amount of cost to the
company.
 VI. ANALYSIS
ACA 3:

D ADVANTAGES

1. People from different regions and countries C

will get information and be familiarized about B
the brand AirAsia A
2. Elevate AirAsia credibility and status
3. An association with a successful team reflects
favourably
4. Increase in sales
 VI. ANALYSIS
ACA 3:

D
DISADVANTAGES C
1. Additional cost to the company B
2. Team may have losing season or lose
popularity
A
 DECISION MATRIX
* Legend
1 – Good
2 – Better
D 3 – Best
C
Definition of terms: B
·Effectiveness – the capability of an action in producing a desired
result.
A
·Efficiency – signifies a level of performance that describes using the
least amount of input to achieve the highest amount of output.
·Ease o - considers the perceived duration of the implementation
period of the respective ACAs.
·Budgetary requirement - considers the perceived cost or budgetary
requirement of the respective ACAs.
 Decision Criteria ACA 1 ACA 2 ACA 3

Effectiveness 2 3 1

D Efficiency 1 2 2
C
Ease of Implementation 2 3 1 B
Budgetary Requirements 3 1 2
A
Total 8 10 6
 VII. CONCLUSION
Based on the decision matrix, ACA 2 has the
highest total rating of in comparison with ACAs 1
and 3. Therefore, the course of action to be
D C
adopted for this case is ACA 2 Implementation of B
brand extensions to leverage and integrate
strengths inherent within a brand to an identified
A
but unmet market need through joint venture
and strategic alliances to expand its brand
offerings. (Partnership with companies that offer
budget hotels, online travel portal, Insurance,
travel credit cards and shuttle buses).
 AIRASIA
VIII.PLAN OF ACTION
 DETAILED ACTIVITIES RESPONSIBLE TIME FRAME OUTPUT Budget
PERSON (Peso)
Management and Marketing 1-2 months Proposed brand 20,000
Series of meetings for Team strategy and
conceptualizing and planning on Implementation
how to implement brand Schedule
extension of AirAsia
Series of meeting with the partner Partner companies 1 - 3 months Brand strategy 50,000
companies (joint venture) and Marketing Team concepts and
negotiation of the concept and Finance Team joint venture
contributions Operations Team
Tony Fernandes, Group
Chief Executive Officer
Budget Preparation for brand Finance and Marketing 1 week Budget Plan 10,000
extension Team
Presentation and approval by the Board, Shareholders and 1 week Approved brand -
board and shareholders Marketing Team strategy and
implementation
schedule
 DETAILED ACTIVITIES RESPONSIBLE TIME FRAME OUTPUT Budget
PERSON (Peso)
Implementation:

Meetings and contract signing Tony Fernandes, Group 1 month Contracts 50,000
of the partner companies Chief Executive Officer
Partner companies
Implementation of the brand Operations Team Continuous 500,000
extension, offering insurance, Marketing Team
credit cards, online travel
portal, use of shuttle buses
 DETAILED ACTIVITIES RESPONSIBLE TIME FRAME OUTPUT Budget
PERSON (Peso)
Evaluation/ Monitoring

Marketing Department and

Review the impact of the new Accounting Department Annually Financial
brand strategies to the AirAsia’s Statement
revenue

Evaluation of the brand strategies Top management and Annually Survey and
implemented through conduct of Marketing Department Feedback
surveys and client feedback Report
mechanisms
THANK YOU!