Marketing plan of Air Asia is sustainable?
Air Asia is a collaboration between TATA and Asia airlines. The company is currently marketing in India heavily with the lowest fares for flights from Goa to Bangalore and Bangalore to Kochin.
Ofcourse the fares are charged below the cost, but it is marketing cost and marketing is much important to make company visible in Indian aviation market.
But, i see a negativity in the marketing strategy. Company have promoted the airline between the roots which are reachable by bus and cost lesser fares.
Instead of GOA to Bangalore, the company should have started something like Bangalore to Delhi. Bangalore to Delhi route could have given more publicity to company.
What is your opinion on this?
I can understand your concern regarding marketing strategy. But, what air asia has done is perfect as per me. Reason for me calling it perfect are:
- Media makes public fool. I believe you saw the news on TV, where they tell that air asia is giving tickets at 999 but they dont tell the routes.
- Public take the notice of company after listening the news. Comapny wants to reach to peoples ear and they did it successfully.
- The cost between Bangalore to Goa is not as much as from Delhi to Bangalore. Company achieved the marketing target by incurring minimum loss.
- Its holiday season and people returning from Goa would choose the air asia instead of Bus, again marketing plan looks perfect.
- Delhi to Bangalore route is more competitive, other companies would have also reduced the fares.