PIA MARKETINC PRU)ECT

SUBMITTED TU :

Ms Sarwat kazm| (Lecturer Dept of Management Sc|ence Is|amabad)

SUBMITTED BY :

Sarmad I|yas Ma||k (Ia0988A083)
khawar nayat cheema (Ia0988A064)
Saad soha|| (IA0988A089)
A|| kehman (IA0988A064)





Commission on Science and Tecbnology for Sustainable Development in tbe Soutb




Dedicated
to


Uur Beloved
Parents
and
Teacbers











Commission on Science and Tecbnology for Sustainable Development in tbe Soutb



Acknowledgment



When We start writing, We stop Ior while and think what to write? How to write? We
have no words to express our Ieelings. But We have to write to oIIer our humblebees
sense to 'ALL MIGHTY ALLAH The most beneIicial, gracious and merciIul who
enable us to perceive higher ideas oI liIe and helped us through out our liIe especially
in writing this report and all blessing to His Iavorite PROPHET
MUHAMMAD(PBUH) who is the greatest personality oI this universe.
AIter God we owe our heartiest gratitude to our parents and our Iamily whose prayers
encouraged us to complete our task.
We are also extremely thankIul to Ms Sarwat kazmi Ior their sympathetic treatment,
reward less help, precious suggestions, constant encouragement and personal interest
and kind guideline that enable to write our report.
At the end we shall like to thank all our class Iellows who always helped us in our
studies when we needed









Commission on Science and Tecbnology for Sustainable Development in tbe Soutb



Abstract


ln Lhls ro[ecL we have Lo geL Lhe knowledge abouL Lhe organlzaLlon lA and Lhelr vlslon Mlsslon and
goals 1hen we analyze Lhelr markeL condlLlon Lhrough SWC1 and Lhelr MarkeL plan and sLraLegles
AfLer LhaL ln Lhls pro[ecL Lhe Servlces and ackages offer by lA Lo Lhelr CusLomers and also evaluaLe
Lhelr sLraLegles Lhey use ln Lhelr organlzaLlon






















Table of Contents



























Introduction

A National airline operating Passenger and Cargo

Services
O It is the 16th largest airline in Asia
O Covering Eighty-two Domestic and Foreign
destinations.
O Established in 1955, having vast experience in
the airline industry oI Pakistan with a large
Ileet oI aircraIts
O The Ileet size is Iorty-three.
O A huge Corporation with 18,043 Employees

Main bases :-

innah International Airport, Karachi,
The Allama Iqbal International Airport,Lahore
Islamabad International Airport, Islamabad/Rawalpindi

Secondary Bases :-

Peshawar International Airport,
Faisalabad International Airport,
"uetta International Airport
Multan International Airport




Company Name

9IA
(aklsLan lnLernaLlonal Alrllne )

Company Logo


PIA 1960 LOGO PIA 1990 LOGO



PIA 1990 LOGO PIA 2000 LOGO



PIA CURRENT LOGO PIA CURRENT LOGO


Company History

From Karachi to London via Cairo and Rome PIA entered in international aviation services. 707 was
added to the PIAC Ileet in middle oI 1956, when PIA was running in losses. In Asia PIA
was 1
st
airline who introduce the jets. In 1957 PIA s t a r t e d i t s s e r v i c e s I r o m
Ka r a c h i t o Ne w Yo r k . I n 1 9 6 2 Bo e i n g I l i g h t s wa s introduced between two
wings oI Pakistan. In 1963-64 PIA started its services between Asia and Europe via
Moscow and became the Iirst non-communist airline to Ily in republic oI china. With
54.71 PIA made surplus record oI 49.22 Million. In 1966-67 shop oI engine over haul was completed
.From PIA Ilying school in 1967-68 Iirst batches oI pilots passed out and got the license oI
commercial pilots. I n 1969- 70 e ngi neer i ng s e r vi c e s wa s pr ovi de d t o a ir l i ne s l i ke
Ro ya l Nepa l Airlines Corporation by PIA. DiIIerent agreements like domest ic
operation, international operation, engineering services were made with airlines like Yugoslavia airlines.
I n 1972- 73 PI A ma de a n agr ee me nt wit h t he Ma lt a Ai r l i ne a nd under t hi s
agreement a Management team was send to Malta and wit hin these terminal
Iacilit ies was expanded to Islamabad and Karachi. Body Douglas Dc-10 was
introduced during the year .In 1973-74 Iull time chairman oI board oI directors was appointed .Two
720 B Ileets were given to Malta airline on leased in 1974.In 1976-77 Boeing services was introduced on
weekly bases and PIA new proIit was 158.08 million ,within this 4 new aircraIts were also
introduced .And in same dur at io n s c he me s I or emplo ye e s wer e a l so i nt r oduc ed.
I n 1977 t ec hni c a l services to Air Malta, Yemen airways and Somali airlines were started. In 1977
Boeing 747 was introduced. To promote the hotels two subsidiaries was established and registered by
UAE. I n 1980- 81 new I l i ght cont r o l s yst e m at i nna h t er mi na l a nd
co mput er i z ed reservation system was the achievement oI this era

I n PI A head o I I i c e 1
st
t ime telephone Iacilit y oI direct inward calling and mini
mi c r o Co mput er s was i nt r oduce d. Fr o m La hor e, I s l a ma bad a nd
Pes hawar automation in budgeting Iinance revenue was started. In 1983-84 nights coach Services
were introduced. In 1983-84 Ilight kitchen was extended and modernized. In 1984-85 Iive 737-A300
aircraIts were introduced. In1985 sohni executive class on all PIA B-747 aircraIts Ior international Ilights were
introduced. In 1986-88 Flight Kit chens, Auto Ticket ing on Islamabad routes on Civil


Air Transport was introduced. New routes including twin other was introduced.
Automated reservat ion and ticket ing Iacilit y in MzaIIarabd and Rawalkot was
started. In 1989-90 in PIA history 1
st
t ime two women pilots were inducted to operate
the passenger Ilights. In 1990-91 international Ilights Irom mohenjo daro was introduced The
nineties also saw the expansion oI PIA's massive Haj and Umrah operations to Pakistan's smaller
cities, in addition to the major cities oI Islamabad, Peshawar, Lahore, "uetta and Karachi


























Company Hierarcby

This organization is divided into Iollowing departments: Human Resource and Administration,
Marketing, Corporate Planning, InIormation Services, Finance, Flight Services, Flight Operation,
Engineering, Procurement and Logistics, Customer Services, Training and Development, "uality
Assurance. The organ gram oI the organization Iollows, with the Chairman at the top and
directors oI departments reporting to him. The structure is centralized with the top-level
management making the decisions.

Vision statement

To be a World Class Airline exceeding Customer Expectations through Dedicated Employees
Committed to Excellence



Mission statement

As a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on Modern
Commercial concepts and Capable of Competing with the Best in the International as well as
Domestic markets.













SWUT Analysis


Strengtbs :-

Strengths are Iound in the internal environment oI the organization. They are the backbone oI an
organization. Strengths oI an organization can over come any k i n d o I we a k n e s s e s t h a t
t h e o r g a n i z a t i o n i s I a c i n g . P I A h a s a n u mb e r o I strengths due to which it is
still one oI the leading airline in Pakistan. These areas Iollowing
O Only National Airline
As PIA play a role oI ambassador oI Pakistan so when Pakistanis expertise travel in it they
got the homely Ieelings. This help in increase the loyalt y oI customers.
O ajj And Umrah Services Provision
Pakistani people Ior HA and Umrah just preIerred the PIA Ior their direct
dest inat ions PIA providing them best services and also arrange extra se ss io ns
Ior cust o mer s t o r each t he m at edda h a nd Ri ya dh Ior Ha j j a ndUmrah.
O People Oriented Organization
As PIA providing services to public sector they make their strategies according to the demand oI
the customers.
O Direct Access To The Destinations
PIA has strong advantage that provides the Iacility oI direct destinations toothier customers.
Customers preIerred PIA that they have not be wait at the HUB oI DiIIerent airlines.
O Electronic Ticketing
PIA also providing the Iacility oI E-ticketing. Customers now can make their booking online and
can take print and will make payment during boarding.


O alal meat available at all flights
O Monopoly In The Domestic Routes
PIA is the only airline in Pakistan which has its access to the remote areas oI Pakistan where its
competitors are not providing services.
Weakness :-

Weaknesses are also Iound in t he internal environment oI the organizat ion.
Weaknesses iI more in quantity can break down an organization easily. They can over come the strengths as
well. PIA also Iaces a number oI weaknesses which are as Iollowing
O Government Intervention
Government intervention create main problem Ior PIA management to carry out their operations.
Govt. opposed high taxes as results Iairs will increase and also r e Ier e nc i ng cr e at e
pr obl e m a nd a l so r e st r i ct t he r ight s oI e mplo ye e s t o be IulIilled.
O Less Effort In Marketing Field
Employees oI marketing department specially pay less attention to their responsibit iles. They are
not committed to their dut ies. This creates loss Ior company.
O igh Fares
PIA Iairs are high as compared to its competitors. Customers with same quality level mostly
preIerred then competitor`s airlines. PIA should decrease its cost in this way they can decrease their
Iairs rate.
O igher Operating Cost.
Old aging Ileets carry more cost due to their maintenance, Iuel consumpt ion. So
these Ileets should sale out or used aIter repairing as Ireighters.



O No Availability of Freighters.
PIA does not have Ireighters to carry cargo at national and internat ional level both
.due to this they can not cover the market to completely to carry luggage Irom 1 place to
another place.
O Inadequate Space On The Aircraft
Upportunities :-

Opportunities exist in the external environment. They need to be recognized and used according to
the business being run. An opportunity recognized and utilized at the right time will be the strength oI
tomorrow. Such kind oI opportunities also exists Ior PIA in its external environment. Some oI them are as
Iollowing:
O leet Expansion
As the social trends oI customers are changing they should expand their Ileets to meet the current and Iuture
demand oI the customers.
O Proper Training Program
PIA should arrange proper training programmes Ior its employees to provide them best
services to their customers. In this way they can make their customers more loyal.
O Large Domestic Network.
PIA has largest domestic network and by proper route planning PIA can generate huge amount oI Revenue with
higher proIit

Tbreats

External threats can damage the business perIormance oI every organization. These threats can be
reason oI bankruptcy. PIAC is well established organization yet there are some threats which PIA has to Iace.
Some oI them are as under:



O Upen Sky Policy
According to this policy we allow other airlines to come and use our sky . And take
our customers to away. This is a big threat Ior PIA because in this way we lose our many customers.
O Insufficient leet
PIA as the national carrier oI Pakistan customers more preIerred to it. But PIA does not have
enough numbers oI Ileets to meet the demand oI customers. For this reason they preIerred other
airlines.
O Domestic Destinations
PI A has a bi g t hr e at t hat it s co mpet it or s pr ovi d i ng ser vi c e s t o cust o mer s
at domest ic levels. So PIA should also Iocus to provide more services at point where
its competitors are trying to reach.
O Leakage Uf Money
According to rules II there is any mistake related to documents oI any customers then PIA have to pay
charges as a crime/and in this way a big amount oI PIA is lost due to these charges.
O Maintenance Incapability

PIA does not pay more attention towards the maintenance oI PIA Ileets .and as result they became phase out. And
no longer used Ior travel.
O Negative Rising Perception
As perception regarding terrorism is increasing customers specially Ioreigners hesitate to travel with
PIA .This is also a big threat Ior PIA.
O requently Rising Airlines are
As the PIA raising its Iairs continuously .This giving opportunity to competitors to enter in market
and attract more customers at low Iairs.
O ast Crowing Competitors
This is a big threat Ior PIA that at national and international level its competitors are increasing
.Which also trying to providing services at the level oI PIA. So PIA should improve its services at
their best level .
O Misusage of Cov't officers



Marketing Plan



























Competitor Analysis
Domestically.
Shaheen, Air Blue Air lines.
Internationally
GulI, Emirates, Saudi airline, "atar airline, It had.

Compet itors are those Iactors which cant not ignored by any company to go- ahead.
For ga i n mor e ma r ket s har e co mpet it or ana l ys i s i s most i mpor t a nt . Because
through this company come to know about the strong and weak points oI current and potential
competitors
.
Competitive Edge of PIA
O PIA services are more reliable and saIe.

O PIA has advanced and best engineering Iaculties.

O PIA Pilots are very competent and trained.

O PIA is only airline which carry the National Flag.

O As PIA play a role oI ambassador oI Pakistan. So when Pakistanis expertise travels in it they
get the homely Ieelings.

O PIA is only airline in Pakistan which has its approaches to remote areas
oI Pakistan.

O PIA use highly equipped engineering technologies

O lA has 63 markeL share aL domesLlc level and 484 aL lnLernaLl onal level
lA has compeLlLlve move ln aklsLan as lL ls markeL leader ln aklsLan



Supply Cbains






























Market Segments

Segmentation:-
Breaking down a market into sub-groups is called market segmentation . A market segme nt i s a
subgr oup o I peopl e or or gani z at io ns s har i ng one or mor e characteristics that cause
them to have similar product needs.

it is distinct Irom other segments (heterogeneity across segments)
it is homogeneous within the segment (exhibits common attributes)
it responds similarly to a market stimuli
it can be reached by a market intervention


Segmentation vaiiables
Heosuroble
Segment should be measurable in terms oI Size, purchasing power.
UUessible
Segments must be eIIectively reached and served.
Substontiol
Segments must be large or proIitable enough to serve.
Bifferentiol
Segments must respond diIIerently to diIIerent marketing mix elements & actions.
Utionoble
Must be able to attract and serve the segments





Segmentation Criteria :-

eoqropbiU Variables

Reglon Whole World
ountr y US, UK, Saudi Arabia, Dubai, GulI Countries.
ities Metropolitan Cities, within and out side country

Demograpbic Variables

enJer Male, Female
Income Audience Ialls under the category oI upper middle and upper class.
Occuputlon Students, Business Man, Working Class,
Rellglon All people belong o diIIerent religious.

Psycbograpbic Variables

erxonullty Status Conscious People, Business Class.
SoUiol lossTourists All the tourists within the and outside the country .becausePakistan airline have a vast
linking with remote areas.
Reliqious troJers going Ior or coming in Ior religious oIIering.
Pokiston expertise people residing outside the Pakistan.

Bebavioral Variables




enefit Souqbt uolity people who want to enjoy good service at lower cost.
runJ Ioyulty Due to best services and comIortable journey till destinationcustomers become loyal.

Uccasions Based

ojj boseJ people going to perIorm hajj will preIer it due to direct way.
FiJ 0UUosions people within or outside the Pakistan make their journey tospend their holidays with their
Iamilies.
New Yeor 0UUosion as New Year is welcomed with great warm out side thePakistan so people go outside to
celebrate this occasion.



Target Market

AIter segmentation which is done above PIA make strategies to provide the services to audience .From
Ceograpbic Segmentation

PIA targeting the customers lived in whole around the world as residence or Ior business purpose.
Demograpbic Segmentation

PIA targeting the income and occupation oriented customers.
Psycbograpbic Segmentation

The target audience oI PIA is tourists, religious traders, Pakistani expertise and social class.
Bebavioral Segmentation

The target audience Ialls in categories oI occasion based like Hajj, Eid, and New Year occasion


Product Plan



























Product
Product
The thing which is oIIered in the market by the company to satisIy the needs and wants oI customers
called product. Products are oI two types. They can be tangible or may not be part oI
products which are not touched or have physical existence is called services. And this is the product oI
PIAC.
PIAC dealing in providing services oI 2 types
AircraIt Seats Ior passengers
AircraIt space Ior cargo.

Servicesof PIA

urlublllty
In Ilight services and pick & drop services Ior Business personnel

urlxh ublllty
Baggage services In Flight Services

Intunglblllty
Care Internal SatisIaction SaIety

Inxepurublllty
InIormation Experience









Price

Organizat ions Ior proIit purposes always set its object ive to meet its revenue targets
.Price is amount which customers pay to company Ior its services. Market share and proIitability oI the
organization is only determined by this element oI mar ket i ng mi x. I t s onl y t oo l oI
mar ket i ng mi x whi c h cr eat e r e ve nue Ior t he company. Price setting is a diIIicult task Ior the
company.PIA has two types oI services and its big task Ior it to manage the price Ior both services
eIIectively.
Revenue Tickets
Air Way Bills


Price ormulation

or domestic and international routes PIA sets its price by follow tbe procedure.:-
Setting Price for Domestic Routes
For do me st ic r out es t he I a i r s ar e s et by t he he ad o I I i c e Kar ac hi . Cost plus
method use in PIA Ior setting price. By analyzing the pricing objectives, use oI aircraIts, RBDs
level, competitor Iairs and discounts, and estimating cost. Then Iinal price charged to the customers.
And it also depend upon the classes which class customer choose and diIIerent customer has charge diIIerent
prices such as student get 25percent discount ,Senior citizen get 10percent discount .
Setting Price for International Routes
For international routes the Iairs are set by the international air travel associations. IATA dose not oIIer any
oII any discounts .But to promote the Sales the PIA allows its agents to give discount oIIers to its customers





Promotion

PIA done promotion by giving diIIerent packages, oIIers to customers. Like
Students got10 discounts individually.
II group is more persons then discounts is25 . .
Handicapped people got 50 discounts .
Infant got 75 discounts .
Cbildren mostly 67 and i n so me count r y 50 depend upon r ul e s a nd destination.
50 discounts to Army, Blinds, and )ournalist.

It promote by using different Medias like :-
Tbrougb Advertisement
PIA gives ads on TV and Fm radio. And also on diIIerent websites.
Tbrougb Print Media
Through its puIlets, through broachers, on news paper etc