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Mandala Air Marketing Plan - The


Second Life

Mandala Air Marketing Plan

The Second Life

Mandala Air Marketing Plan - The


Second Life

Comprehensive Mandala Air Marketing Plan


Framework
Analysis
1

Marketi
ng
Objectiv
es

Overview :
Mandala Air

Macroeconomic
environment
4 Cs analysis : Change,
Consumer, Competitor,
Company
SWOT Analysis

Consumer Insight

Action
Plan
8
Implementation

Target Market,
and Positioning

4
Situation
Analysis :

Marketi
ng
5 Strateg
Marketing
y
Segmentation,

Marketing goal
and objectives

6
Marketing
Strategies and
Tactics

7
Resources
allocation and
budgets

Mandala Air Marketing Plan - The


Second Life

Evaluati
on
9

Controls
progress
measurement
and monitoring

Executive 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 Life

June 2012
Rebranding the new Mandala
Tiger Plane Appearance

About Mandala Air


April 17, 1969
Established. The
founders were Col.
Sofjar, Maj. Gen.
Raden Soerjo, Adil
Aljol, Maj. (Air Force)
Soegandi
Partosoegondo,
Kasbi Indradjanoe
and Darwin Ramli 2

May 2011
Tiger Airways
acquire a 33 %
stake, Saratoga
Group 51 % of
Mandala.
Mandala Airlines
focus on Low Cost
Carrier market

1
Jan 13, 2011
Mandala
Airlines
temporarily
stopped flying
all of their
fleet due to
debt
problems.

6
5
4
April 5, 2012
First domestic route,
based in Jakarta and
Medan
April 20, 2012
First international
destination when it
launches the MedanSingapore route.

Mandala Air Marketing Plan - The


Second Life

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

Situation Analysis :
4 Cs Diamond
Aviation Law.
The rules on Law No. 1, 2009
on Aviation,
Aviation regulation and
government policy
The increase in aviation fuel
prices
Pol-Leg

IT is expand very fast,


Social Media Revolutions
Change Internet become very
popular
Tech

Economy

Soc-Cul

Market

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
7-million
Mandalaincreased
Air Marketingby
Plan
The
people eachSecond
year. Life

Social Media
Phenomenon
People with high
mobility

Situation Analysis :
4 Cs Diamond
Change
Tech

Pol-Leg

Economy

Soc-Cul

Market

Custome

Competito
r

Company is value-decider
The must existing
competence analysis for
the company.
Company have several
choices that is go/invest,
7no no/hold, harvest and
divest.

Company

Mandala Air Marketing Plan - The


Second Life

Customer more
educated
Customer have many
choices
Customer more
demanding and
difficult to satisfy.

Macro Economic

Macro Economy
Indicator

Data

Population

240 million

GDP growth (%)

6,5 %

GDP per capita (US


$)

3600

Macro Economy Indicator

Data

Net Capital Inflows (Million)

22.64

Increase Economic Growth

7%

Indonesias Income Per capita


prediction 2030 (US$)

10,000

Economic Growth ASEAN


6,9%
Exchange rate per
8500
US$The Fourth Cluster Driving Growth : food and beverages industry, Textiles, textile products,
and footwear
electronics and electronic components industry, and transportation
Poverty
Number industry,
14,6%
equipments and automotive components industry.

Mandala Air Marketing Plan - The


Second Life

Competitor Analysis

Mandala Air Marketing Plan - The


Second Life

Airlines
in average

Competitor Analysis

Existing Airline Value


Curve

Airlines
in average

v
Price

Food

Loung
e

Choice
s of
Seat
Class

Hub
Conne
ctivity

Low
Price

Fast Departur
e from
Cities

Comfo
rtable

Baggage
Included
with Ticket
Price

Market Share

Airline

Frequency
share
38.9%

Capacity
share
45.5%

Domestic
routes
92

Lion Air
Garuda
20.9%
21.6%
38
Indonesia
Batavia
12.7%
10.7%
55
Sriwijaya Air
9.8%
8.8%
39
Merpati
7.4%
5.9%
41
Nusantara
Mandala
3.0%
3.0%
17
Airlines
Indonesia
1.6%
1.8%
6
AirAsia
Source: OAG Max Online for w/c 10 January 2011

11

Mandala Air Marketing Plan - The


Second Life

SWOT Matrix Analysis

Opportunities
The 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

Strength
Weaknesses
Shares own Mandala
Service resource is
Saratoga Capital (51%),
limited by lower costs
Tiger Airways (33%),
Limited human
concurrent credit 15%, and
resources Situation.
the old shareholders Cardig Brand is vital for
and Indigo (1%)
market position and
Safe and reliable flights
developing it is always

a challenge
Weaknesses/
Mandala routes are
Strength/ opportunities (SO)
opportunities (WO)
limited.

Increase Market Share


Build Strong Mandala

Increase Sale & Revenue


Expand current customer
rewards program to build
customer loyalty.

Strength/ Treats (ST)

Expand brand recognition


as top low-cost air carrier

Focus on the importance of


safety, security, and
service.

Offer the most competitive


price

Treats
High fuel price decreases yield
Aviation regulation and
government policy
The increase of in the customer's
requirements of higher-quality
Mandala Air Marketing Plan - The
12
products
/ services
Second Life

Brand
Increase the Route
Focus on service,
speed and departure
point-to-point.

Weaknesses/ Treats
(WT)

Increase load capacity

Initiate employee
rewards program for
productivity and
customer retention.

Create expanded
strategy

Mandala Air Consumer Insight

13

Mandala Air Marketing Plan - The


Second Life

Customers Profile
1
Within a year,
have you
ever
travel?

>12 time/year

How many
100
times a year
%
do you
travel?
YES
3 What was
your
destination?

Domestic
Destination 4%
4%
4%
4%
13%
4%
13%
4%
9%
9%
9% 7% 4%
4%
4%

1-3
time/year

21%

29%

14%
8-12
time/year

4-8
time/year

36%

Balikpapan
Banjarmasin
Jambi
Jayapura
Lampung
Singkawang
Solo
Tanjung Putting
Lombok
Sampit
Denpasar
Makasar
Semarang
Surabaya
Yogyakarta

International
Destination
5%
3% 5%
37%
8%
18%

11%
13%

Korea
London
Philipine
Australia
Hongkong
Bangkok
Kuala Lumpur
Singapore

Airlines Profile
Internation
al
Destinatio
n

What kind of
transportation
do you use?

Airplane
100%

Mandala Air Marketing Plan - The


Second Life

For
Domestic
Destinatio
n
Airplane
79%

Airlines Profile

2
Where do you Buy the
71% Online
| 29% Travel
tickets?

Agent

What airlines do you use to


travel?
Airplan
e
100 %

Batavia Air
Kalstar

3% 3% 3%
30%
30%

5%
14%

Singapore
Airlines

14%

Lion

Why do you use this


airlines?

79 % because of the Price


75 % because of the promo
65% because of the Route Hub
57% because of the airlines
provide food
57 % because of the punctual time
25% because of the comfort
8 % because of the Lounge
5availability

Do you aware about the type


of the plane? (ex. Airbuss,
boeing etc)

Sriwijaya
Mandala
Garuda
Air Asia

I dont Care; 15%


No; 46% Yes; 38%

Mandala Air Marketing Plan - The


Second Life

Mandalas Brand
Awareness
Have you
heard about
Mandala Air?

Yes
100
%

Are you aware that now Mandala is


operating again?
No
25%

Yes
75%

Have you flight using


69%
Yes | 31%
Mandala
Air? No
Why?
18% Good Service
18% Good Pilot (Landing)
14% Easy & quick to do reservation
online
14% Clean and Comfort
16% Fare Price
14% Punctual

Have you flight using Tiger


36% Yes
| 64% No
Air?
Why?

17% Cheap
Price
6% Good
Service

25% Service Not


Good
18% Using old
Plane
18% Bad Interior
12% Bad
Turbulence

Netnography

18

Mandala Air Marketing Plan - The


Second Life

The Power of STP to


Win The Mind
Share

Marketing Strategy & Competitive Positioning

Travelers
Promo Lovers
Shopaholic
Value Added
Seeker

Segmentat
ion

20

Low
Price
High
Value

Value
Added
Seeker
Targeting

Positioning

Mandala Air Marketing Plan - The


Second Life

Marketing Goals & Objectives


Create
Create
Build a
Mandala
Build
a
Mandala
strong
New
strong
New
Mandala
Experienc Mandala
Experienc
Brand
e
Brand
e
Communicate
Open new
Communicate
Open new
the New
route with
the
New
Mandala
route with
Mandala
lower
Values and
lower
Values
and
costs
Commitment
costs
Commitment
Increase
Increase
Increase
Increase
Sales &
Sales &
Market Share
Revenue Market
Share
Revenue
21

Mandala Air Marketing Plan - The


Second Life

Marketing Mix 4 Cs Strategies and Tactics

Cost

Set the price to


be affordable.
Below Full
Service and
average Low
Cost Carrier
Airways.

22

Consumer

Open New
Route,
new route
Full Service
Route

Convenien
t

Travel Agent,
Online,
Smartphone
Application

Mandala Air Marketing Plan - The


Second Life

Communica
tion

360 degree
Communication

consumer
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 Airport
Singapore : Singapore Changi Airport
Malaysia : Kuala Lumpur Kuala Lumpur
International Airport
Other routes that have been approved include JakartaSingapore and Singapore-Denpasar (Bali)-Jakarta.
Terminated destinations
Hong Kong - Hong Kong
Indonesia - Balikpapan, Banjarmasin, Batam, Bengkulu,
Denpasar/Bali, Jambi, Kupang, Padang, Pangkal Pinang,
Pekanbaru, Semarang, Surabaya, Tarakan, Yogyakarta.
Macau - Macau

Average Stage Length : 5 hours Mandala Air Marketing Plan - The


23
Second Life

Consumer New Route

New Route
Medan
Singapore
Raja
Ampat/Waka
tobi

24

Full Service
Airlines
Route
Medan Bali

Not Favorite
Route
Medan Maluku

Mandala Air Marketing Plan - The


Second Life

Strategy ClockSituational
(Pricing Strategy)
Analysis Ancillary Fees
a
M

a
al
d
n

Reservation
changes, baggage
limitations, frequent
flyer point sales,
concession

In-flight service
Mandala 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).[

Convenient (Ticketing Strategy)

26

Mandala web site


website for
customers to book
and pay for tickets
electronically.

Mandala Bye-Pass
airport self-service
kiosks

Mobile Web
program

Travel agency web


sites (e.g.
Travelocity,
Expedia)

Corporate booking
agencies

Traditional travel
agencies

In line with current


airline practice,
Mandala Airlines
utilized an
electronic ticketing
and an e-payment
system.

The airline had a


24-hour call center

Mandala T.T.M
Ticket Teller
Machine

Mandala Air Marketing Plan - The


Second Life

27

Mandala Air Marketing Plan - The


Second Life

Marketing and Brand


Position

28

Mandala Air Marketing Plan - The


Second Life

Clarification
Marketing
Vision

Core Area

Mandala Air = LCC Airline


Icon

Product
Leadersh
ip

Brand
Leaders
hip
Premium

Custome
r
Leadersh
ip

Marketing Expertise & Organization

Maximize Marketing Efficiency

Brand Strategy Platform...


Brand Target
Value Added Seeker

Brand Essence
Everyone already fly

Brand Positioning
Low Price High Value
Brand Personality
Active, Dynamic, Modern

The differentiations of
Mandala Air than the
competitor

NEW

Airlines
in average

Mandala Value Curve


Proposed

v
Price

Food

Loung
e

Choice
s of
Seat
Class

Hub
Conne
ctivity

Low
Price

Fast Departur
e from
Cities

Comfo
rtable

Baggage
Included
with Ticket
Price

Communal
Co
creation Activation
Conversation
Campaign

Global
Campaign

Local
Campaign

Recent "All You Can


Wher
Fly" promotions
All
Mandala Lovers
Near You!
e can
allowed consumers
to buy a monthly
you Lovers
Fly
Mandala
Mandala
with You!

Mandala lovers
pass for unlimited
travel to Mandala
Mandala Lovers
with
destinations.
Mandala believes
Communityhalf
of the buyers
had not flown them
before.

can

Experience
Fly

Mandala Check
and Go

The following table describes how Mandala's marketing


program supports its brand position.

360 degree Communication

Brand
Brand
Equity
Equity ::
Mandal
Mandal
a
a Tiger
Tiger
Air
Air

Media
Gathering
PR Activities
All you
you can
can Fly
Fly
All

Sales
Sales ::
Numbe
Numbe
rr of
of
Sales
Sales
and
and
Profit
Profit

Credibility/
Image

Advertisem
ent,
TVC @
Commercial
s TV and
Youtube
Education
&
Awareness

Active
Mandala
Product
at
Relationship
Tiger Air
Experience
Social
Were
Media,
Back
Mandal
Exhibitio
n
a Tiger Developing
affiliate
Mandala
Air Mail
relationshi
Tiger Air
List
ps with
Mobile
banks
Booth

Sales
Sales
::
Numb
Numb
er
er of
of
Sales
Sales
and
and
Profit
Profit
Brand
Brand
Equity
Equity
::
Mand
Mand
ala
ala
Tiger
Tiger
Air
Air

Alternative Recommendation

34

Social Media
Website
Mandala Lovers
Continue to Stress
Differentiation
Leverage Integrated
Customer Service System
Target Price Sensitive
Customer
Brand Ambasador

Mandala Air Marketing Plan - The


Second Life

Controls progress measurement and monitoring


Mandala Airs Marketing
Performance

Period

35

Mandala Air Marketing Plan - The


Second Life

thanks
36

Mandala Air Marketing Plan - The


Second Life

Appendix

37

Mandala Air Marketing Plan - The


Second Life

Change
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
prices

IT is expand very fast,


especially in
communication
Social Media Revolutions
Internet become very
popular
Expand the technology of
the
Tech
website (i.e. iPhone
apps, etc.)
Pol-Leg

Economy

Soc-Cul

Market

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.
38

Mandala Air Marketing Plan - The


Second Life

Competitor

39

When 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 share
Differentiation from traditional LCC model by adding
customer services or operation as full service airline
with low fare
Ongoing industry consolidation has opened up
prospects for new routes and airport deals
Full service airlines start cut costs to compete
Entrance of other LCCs
Increase in operation cost in producing value-added
services
System disruption due to heavily reliance on online
sales
The increase in customers requirements of higherquality products/services
Mandala Air Marketing Plan - The
Second Life

Customer
Customer more educated and
have many information to take
decision.
Customer have many choices
Customer 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 phone
Price- oriented segment is very
big, but have low buying
power.
40

Mandala Air Marketing Plan - The


Second Life

Company

41

Company is value-decider
The 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
Mandala Air Marketing Plan - The
attitude
Second Life

Competitor Analysis 4Ps

Presiden
Direktur
Mulai
Beroperasi
Aliansi
Slogan

Mandala Air

Lion Air

Sriwijaya Air

Air Asia

PT Saratoga Investment Gr
oup
(51%), Tiger Airways
(33%), Kreditur dan
pemegang saham lama
(16%)
DionoNurjadin

PT Lion
Mentari
Airlines

PT. Sriwijaya
Air

PT. Indonesia
AirAsia.

Rusdi
Kirana

Chandra Lie

17 April 1969, Berenti


beroperasi 10 Januari 2011
4 April 2012
Tiger Airways

19 Oktober
1999

2003

Wings Air

Partner Airlines of Tiger


Airways

We make
people fly
Bisnis
Ekonomi

Program
Frequent
Flier
Lounge
Penumpang

Lion Pasport
Club

Mandala Priority

Lion King
Lounge

www.mandalaair.com

www.lionair.
co.id

www.sriwijayaa
ir.co.id

Twitter
#followers

@mandalaair #8.917
@tigerairways #11.467
@tigerairwayssg #14.280

@lionairline
rs # 2.384

Twitter
tweets

@mandalaair #632
@tigerairways #352
@tigerairwayssg #1.063

Youtube
Jumlah

11

72

Citilink

PT. Metro Batavia

Sardjono
Jhony
Tjitrokusumo
6 September
1962

Joseph Saul

5 Januari 2002

8 Agustus 2008

Merpati
EasyFlyer

www.merpati.c
o.id

Facebook
#fans

42

Batavia Air

Enjoy Simplicity

Jenis Kelas

Website

Merpati
Nusantara
Airlines

@Sriwijayaair
SJ #2.703
@Sriwijayaair
#1.200
@Sriwijayaair
SJ #18
@Sriwijayaair
#2

@airasiaid
#147.745

Merpati
airlines #
2.432
@merpati_inf
o # 5.011

30.929

6.330

Mandala Air Marketing Plan - The


Second Life
29

33

www.batavia-air.co.id

@bataviaair #3.242

@citilink #18.154

28

8.147

Citilink

Price
Bookin
g 24
April
Manda
2012
la Air
(7 14
Mei) pagi
Jakarta

Denpas
ar

Lion Air

Prom
o
Ekon
omi
Busi
ness

Sriwijaya Air

Air Asia

Rp.
Promo
Rp.
Prom
n/a
401.00
500.00
o
0;
0;
Rp.
Ekono
Rp.
Regul Rp.
643.00
mi
530.00
er
443.9
0;
0;
00;
n/a
Busines
n/a
s

Merpati Nusantara
Airlines

Batavia Air

Promo

Rp.
379.000;

Eco
Promo

Flexi

Rp.
588.000;

Eco
Budget

Rp.
716.900;

Ekonomi
Business

Rp.
698.000;
-

Eco
Medium
Eco
Premium

Rp.
886.900;
Rp.
1.266.900;

Promo

n/a

Eco
Promo

Flexi

n/a

Eco
Budget

Rp.
556.900;

Ekonomi

Rp.
918.000;
-

Eco
Medium
Eco
Premium

Rp.
886.900;
Rp.
1.266.900;

Citilink

Rp.
399.090;

Denpas
ar Jakarta
Prom
o
Ekon
omi
Busi
ness

43

Rp.
Promo
Rp.
Prom
n/a
544.00
460.00
o
0;
0;
Rp.
Ekono
Rp.
Regul Rp.
643.00
mi
530.00
er
443.9
0;
0;
00;
n/a
Busines
n/a
s

Mandala Air Marketing Business


Plan - The
Second Life

Rp.
399.090;

Place
Reserv
Manda
ation
la Air
by
Websit
e
(online
)
Travel
Agenc
y
Airport
Phone
(call
centre
44

Lion
Air

Sriwija
ya Air

Air
Asia

Merpa
ti
Nusan Batavi
Citilink
tara
a Air
Airline
s
v
v
v

v
Mandala Air Marketing Plan - The
Second Life

Promotion
Mand
Sriwij
Air
ala
Lion Air aya
Asia
Air
Air
Onlin
e
Prom
otion

45

Visa
epaym
ent

Merpati
Nusanta
ra
Airlines
Visa
Mandiri
OCBC
NISP
Klik Bca

Bca
Visa
Bank
bri
Bni
Bii
Bank
sums
el
Visa
mast
er Air Marketing Plan - The
Mandala
Second Life

Batavia
Citilink
Air
BCA
Mandiri
NMO
Visa
Master
Paypal
Discov
er
Americ
an
Express

Service
Mandala
Air
Booking
My Flight

Lion
Air
v

v
v
v

Loyalty
Program
Courier

Air
Asia
v

Entertainme
nt
Online
Shopping
Credit Card

v
v

v
v

Savers
Account
Corporate
46
Webbanner

v
v
v
v

v
Mandala Air Marketing Plan - The
v SecondvLife

Citilin
k
v

Batavia
Air

Cargo

Promosi

Merpati Nusantara
Airlines
v

Flight Info
Hotels &
Tours
Travel Info

Sriwijaya
Air

Situational Analysis
Ansoff Matrix

Products

Ma
rk
ets

Exi
sti
ng

Existing

New

Market
Penetration/Consolidation

Product Development

4
5

Ne
w

3
Market Development

Diversification

Situational Analysis
Strategy Clock (Pricing Strategy)

Man
d

ala

SWOT Matrix Analysis

Opportunities
A. The growth of the aviation industry average of 20% -21% per year.
2. Long haul flight to get your trial is an undeveloped market share
3. Differentiation from traditional LCC models by adding customer services or as
full-service operation with a low fare airline
4. Ongoing industry consolidation has opened up prospects for new routes and
airport deals
5. High fuel prices will squeeze out unprofitable competitors
6. Service low cost carrier (LCC) more attractive to suck 80% market share.
7. 16 domestic routes and four international routes
8. Target the middle class 7 million people each year.
9. Increased tourism sector
10. 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.)
Treats
1. Full service airlines cut costs start to Compete
2. Entrance of other LCCs
3. High fuel price decreases yield
4. Accident, terrorist attack, and disaster and affect customer confidence
5. Aviation regulation and government policy
6. Increase in operation cost in producing value-added services
7. System Disruption due to Heavily reliance on online sales
8. Asean Open Sky enacted in 2015
9. 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 prices
13. The increase of in the customer's requirements of higher-quality products /
services
14. Tiger Airways Mandala proposed name is replaced with the name Tiger.

49

Strength
1.
Shares owned Mandala Saratoga Capital (51%), Tiger Airways
(33%), concurrent credit of 15%, and the old shareholders
Cardig and Indigo (1%).
2.
Tiger Sandiaga and prepare capital of U.S. $ 250 million.
3.
Tiger Airways business model adopted.
4.
Low-cost airline
5.
Mandala operated scheduled services to three international
and 17 domestic destinations, used a narrow-body fleet of
Airbuses.
6.
The name Mandala is not changed
7.
Safe and reliable flights
8.
Tiger Airways, together with its associated airlines, operates
a fleet of 32 Airbus A320 aircraft

Weaknesses
1.
Service resource is limited by lower costs Limited
human resources Situation Could not handle
irregular.
2.
Government interference and regulation on airport
deals and passenger compensation.
3.
Non-central location of secondary airports.
4.
Brand is vital for market position and developing it is
always a challenge
5.
Heavy reliance on outsourcing
6.
New entrants to Provide the price-sensitive services
7.
Mandala is still not a good name in the public eye
since 2011 had been frozen.
8.
The plane is still not much
9.
Mandala routes are limited.
10. Other companies using the LCC business model too.
11. New Mandala will penetrate the Jakarta-Medan route.
As for the international flights will start from Jakarta
to Kuala Lumpur, Malaysia.

Strength/ opportunities (SO)


1.
Increase Market Share
2.
Increase Sale & Revenue
3.
Expand current customer rewards program
to build customer loyalty.
4.
Expand freight air portion into former Tiger
Airway and Local areas
5.
Mandala 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 electronically

Weaknesses/ opportunities (WO)


1.
Build Strong Mandala Brand
2.
Increase number of pesawat
3.
addition Route
4.
Improve efficiency through the use of
aircraft Airbuss
5.
Focus on service, speed and
departure point-to-point.

Strength/ Treats (ST)


1.
Expand brand recognition as top
low-cost air carrier to eliminate
competition.
2.
Retain low-cost operating
strategy to remain competitive.
3.
Focus on the importance of
safety, security, and service.
4.
Focus on the timeliness
5.
Offer the most competitive price

Weaknesses/ Treats (WT)


1.
Increase load capacity to get
2.
maximum value out of jet
fuel.
3.
Initiate employee rewards
program for productivity and
customer retention.
4.
Create expanded strategy
and growth plan to thwart
competition.
5.
Reduce the cost of jet fuel
that will decrease
operational costs

Mandala Air Marketing Plan - The


Second Life

Netnography (3)

50

Mandala Air Marketing Plan - The


Second Life

Netnography (3)

51

Mandala Air Marketing Plan - The


Second Life

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