About The CompanyCompany Background

Air-Asia Berhad is a low cost airline in Malaysia. It is the largest low-fare, no-frills airline and
the first choice of low-cost travel in Asia. Air-Asia runs domestic and international flights and it
is the first airline in the country practicing fully ticketless travel and unassigned seats. It has a
fleetof 72 aircrafts, route network to over 61 domestics and international destinations,and
operates over 400 flights daily from centre located in Malaysia, Philippines,Indonesia, Thailand
and Japan. In 5th February 2009, AirAsia has appliedallocated seating across all AirAsia flights
including in their associate companieslike AirAsia X, Thai AirAsia, Philippines AirAsia Inc,
Indonesia AirAsia andAirAsia Japan. Today if we look into the progress, AirAsia hasover 55
million passengers across the country and wants to continue expand to moreinclusive route
network through its associate companies.
The 8Ps of Service Marketing
This concept is one of the most popular and useful marketing tools in every business world
especially for the introductory marketing course. According to
Wirtz (2007), in order to capture
the distinctive nature of service performances,we need to modify the original terminology and
speak instead of product elements, place and time, price and other user outlays, and promotion
and education. This isthen extended to the mix of other four service delivery elements which are
the physical environment, process, people and productivity and quality. These eight elements
which is known as the 8Ps of service marketing is to create viable strategies for meeting
customers need profitably in market place. (Khan, 2012).
Product Elements
The term product is refers to tangible or physical products however service is
an intangible and do not have physical presence. In this context, awell-designed service is very
important and it consists of a core product that responds to the customers needs and others
supplementary services are to help customers to use the core product effectively as well as
adding value throughwelcomed enhancements.Guest ConvenientAirAsia believes that by
providing convenient services will make the travelling easier and to achieve their customers
satisfactions. AirAsia had made a lot of changes in delivering their products especially the new
inventionwhere guests can make booking through combination of ways. AirAsia also practicing
the airlines online programme where guests can book tickets through online. AirAsia practices a
quick turnaround of 25minutes, which is known as the fastest throughout the region, and
resulting inhigh aircraft utilization, lower cost and higher productivity. This is to ensuresguests
convenience and satisfaction is met.Ticketless ServicesThis concept was launched on 18 April
2002 with the idea of complements the airlines booking through internet and call centre service.
The guests are nolonger need to the hassle of getting printed tickets.
Price and Other User Outlays
Price refers to the value or worth of a product or service that attracts the buyer toexchange
money and also assess the outlays of their time and effort.Low fare, no frillsAs per discussion
above, AirAsia is practising a significantly lower price thanthose of other airline operators. This
service is targeting to those who will takeflight without frills of meals, airport lounges and so on.
The airlines have nocomplements for meals and drinks but recently the AirAsia has introduced

the snack attac on board at a very affordable price. Guests are now have their choice to purchase
any meals offered.
Place and Time
Distribution is about how the service is being delivered to the customers, lookingat location and
where a service is delivered. This shows whether the guests needto collect it or the company
deliver it to the customers. Internet BookingOne of the criteria for those low-cost companies is
the direct booking throughinternet because this can avoid being extra charged through
commissions or credits to travel agents.Raja Azmi claims that over half of AirAsia bookings are
done via internet while the rest are through salesoffice, the internet, as booking tool for travelling
has remains an exotic curiosity for a sophisticated few. Reservation and Sales OfficeThis is
convenient for the walk-in customers and it is available at airport andtown centers.
Promotion
In service marketing, the education communication plays a vital role especially for the new
customers. The company need to educate these customers about the benefits of the service that
they can obtain and generate a positive customer response. One of the recent example is the
AirAsia had an advertising deal withTime. This is done by having the local mobile phone
operators logo on one of AirAsias plane. Besides that, there will be more promotions on pull
-down trays.In addition, it is also obvious that AirAsia starting offered low fares or sometimes
The zero fare makes people lining up for hours. As aconclusion, this has brought a lot of public
to AirAsia and they got more publicityout of that.
People
The people are one of the important key for Airasia to run their businesssuccessfully by
influencing customers perceptions on their service quality.However, Airasia do not refer to
them as their employees, they are Allstars for Airasia. The philosophy at AirAsia is to attract
the best, train and retainthem. A Corporate Culture Department was set up in 2004 and
came up the same values and vision among the Allstars with an emphasis on OnePeople, One
Culture, One AirAsia, One Family. Training will also be provided in order to improve quality of
services and also to monit or the workers performance. For example, Airasia is providing a
NGL (Next Generation Leaders) programmefor those who are highly organized, creative and
always prepare for challenge before they join Airasia. Besides, Airasia also has training
partnership with CAECompany and Aviation Australia. In addition, all top managers will share
experiences through internet social mediasuch as blogs, mails and twitters. Even the Group Chief
Executive Officer, Tan SriTony Fernandes will check in guests at the counters or handles
baggage on theramp to keep in touch with all the activities that are happening on the ground
andin the air.These are how the employees in Airasiawork to keep the AirAsia brand flying. This
company will always recruit someone who is able to fit into the Allstar culture, which is to care
about safety, beinginnovative and creative, working hard and having fun.
Process
AirAsia is set to take low-cost flying philosophy which requires its operations to be simple and
efficient. Customers can place their order through visitingreservations and sales offices or online
booking. Customers can visit Airasiahomepage then select the language that they want. After
that, they may joinmember if they want to. No fees will be charged to join member and
customerscan save their time by avoiding filling up their personal information each timethey
online booking a ticket since the information has already been saved in thesystem when they

joined member. Select departure and arrival places following byselecting which routes that they
prefer. Finally, email of confirmation for the booking will send to customers email address or
phone number after they have made their payment by credit card or online transferring. The
process of online booking ticket is simple since AirAsia has upgraded itslatest booking
innovation in the form of New Skies. This has benefited all thecustomers to manage their online
bookings easier. Besides, they also can check-inthrough the web without queuing up at the
counter. AirAsia Group Chief Executive Officer, Tan Sri Tony Fernandes says,Of course, the
self check -inoptions will still be made available for international flights to further enhance
thetravel experience and avoid congestions or long queues at the counters. We wouldstill
encourage all our guests to conduct self check-in, especially those withoutany checkin baggage, as well as guests traveling to domestic destinations.
Productivity and Quality
From 2001 to 2010, Airasia had came up with the result for more than 100 millionguests are
placing their faith in AirAsia and choosing them as the airline of choice.
AirAsias revenue increased from RM3.13 billion in 2009 to RM3.9
5 billion in2010. In 2009, and they had grown their fleet from 84 to 90 aircraft. Severalmethods
have been taken for leading them to the way of succeed. One of the mainfactors would definitely
be the practicing of low-cost philosophy and passengers could customize their choices of
services without compromising on quality and services. Airasia have created a brand Now
everyone can fly in order to increase their reputation and gain loyalty and satisfaction from the
customers. Nevertheless, Airasia practices a quick turnaround of 25 minutes, which is
thefastest in the region, resulting in high aircraft utilization, lower costs and greater airline and
staff productivity . While on 1st March2002, Airasia came up with the idea of Easy to Book,
Easy to Pay & Easy to Fly,and they were the first airline in Malaysia that allowed customers
order their bookings through phone and paid by credit cards. The most important factor
thatmakes Airasia becomes so success is definitely the Allstars. They really provide a very good
service and friendly enough to satisfy all the customers needs.
Physical Environment
Physical environment is carefully handle by Airasia too as this can have profoundimpact on
customer impressions. For example, the Allstars are all wearing redcolour uniform which is
matching the theme colour of Airasia--Red. This colour makes them look smart and professional
and thus the customers can feel the passionate of them. On the other hand, entertainment such as
portable players andPremium FlatBed seats is only applicable in AirAsia X Flight subject to a
fee;however the in-flight reading material Travel 3 Sixty, food and beverages andnewspapers are
available on all the flights.AirAsia X Premium FlatBed thoughtfully features a universal power
socket, a personalized reading light, and a foldaway table for maximum productivity
andconvenience in order to let their passengers to enjoy more comfortability. Passengers could
also spend their time in flight by purchasingAirAsia Merchandise and duty-free goodies, which
range from electricalaccessories to personal care items, and chocolates to watches through
magazine.