AMB320 ADVERTISING MANAGEMENT GROUP TWO Jina Kim N8421901 Qiqi Xie N8946396 Jamie Venema N8308012 Jenny Chan N8738254 Luke Bright N8614962
OVERVIEW AND BACKGROUND • AirAsia's current brand positioning focuses on portraying itself as a low cost airline with consumers being able to add-on any desired extras, compared to the typically more expensive ‘all in one’ flights offered by other airlines. • These ancillaries include baggage options, selecting seating, red carpet service, different meal options and other comforts. • While this current position allows for AirAsia to promote itself as the largest low-cost airline in the Southeast Asia, this also results in less ancillary revenue compared to competitors as consumers don’t see the potential value or are either unaware of these extras, which can led to them seeing them as a hidden extra.
ADVERTISING PROBLEM • Consumers aren’t purchasing ancillaries for their flights, meaning that AirAsia is missing out on the opportunity for people to book/pay for extras. • Don't see the importance of purchasing ancillaries and/or don’t think about booking them before they fly. • The advertising problem faced is AirAsia is missing out on potential revenue as consumers are not considering the benefits of the ancillaries on offer.
OBJECTIVES • The objective of the campaign will be to increase ancillary revenue on average by 20% per person (?) • Change the public perception of ancillary purchases by consumers
TARGET ANALYSIS • Young Australian 18-39 years who are seeking low cost fares to Asia. • Australians are widely known as most intrepid travelers and has adventurous spirit and love of travelling (Australia Post, 2016; Zoiti, 2015; Australian Bureau of Statistics, 2010; Australian Bureau of Statistics, 2016) not travelli short ng interna 6% tional travel Domest 11% ic trips bookin 35% g travel packag e Interna 15% tional trips 33% Australian 2016 Travel Trend
Purpose of Travel Destination of Travel Visiting 4,510 friends and 4,010 relatives, Number of Austrailan 3,510 business [CATEGORY 3,010 NAME] and other 2,510 [PERCENTAGE] 42% 2,010 1,510 1,010 510 Other Asia 10 MIDD 9% Thailand LE 13% EAST South India Japan Vietnam 6% 6% Pacifi Europ AND Ameri and 5% Asia Hong Kong c e NORT ca other 5% H Africa Indonesia Singapore 26% China AFRIC 9% 10% A Malaysia 6% 2014 1,584 1,296 183 3,714 1,080 144 Philippines 5% 2015 1,617 1,347 191 4,177 1,122 143 Preference destination in Asia country (Tourism Research Australia, 2016)
Medium used to book a Media usage in Australia short trip Long Trip Booking Channel (Kattiyapornpong, 2009)
Feature of Consumers who using low price airline: – Not considered other carriers’ services before booking their flights. – Most important factor is low cost and flight schedules. – Willing to pay for add value services – Clear communication and choice is most important factor ( O’Connell & Williams, 2005; Amadeus, 2012 ) Trend of passengers: • Increase number of economy class passengers • Interested in supplementary services • Prefer seat selection and lounge access. (Amadeus, 2012; Wittmer & Rowley, 2014 )
CONSUMER INSIGHT South-east Asia is comparatively cheap as a holiday destination, but consumers are not necessarily budget travelers Value for money is far more important than simple low cost Consumers are not bargain hunters, but they are after a good deal
Target consumers are impulse buyers The average trip to south-east Asia is similarly less planned and more impulsive (BDRC Continental, 2015) Consumers are also increasingly demanding flexibility in their travel arangements, especially among 18-39 year olds (booking.com, 2014)
Consumers do not want excess, but they do not want bare bones service, either. Younger consumers are increasingly focused on purchasing experiences over luxury (Machado, 2013) Target consumers in generation Y are driven in their purchases by a sense of individuality (Outlaw Consulting, 2008)
BIG IDEA
The big idea is based on consumers' desire to eliminate excess, as well as catering to their need for flexibility. AirAsia's goals: "To attain the lowest cost" "Maintain the highest quality product"
Positions AirAsia as efficient, versatily and good value, not just low cost Showcases AirAsia‘s USP The flexibility of AirAsia's ancillaries is front and centre.
CREATIVE CONCEPT
MEDIA PLAN Pulsing media schedule to the young generation is overexposed would be too much for advertising (Braun, 2011)
MEDIA PLAN • eDM - Email eDM is use email to communication to the customers Email can send with their special and holiday offers promotion • YouTube Ads YouTube ads is engage to reach with the audiences • Mobile App Promote for AirAsia to attract customers to win a holiday trip • Social Media Facebook and Twitter ads posted on the news feed to interact with the audiences Communication with the audiences
Email If pre book extras over $45, you can get discounts of booking hotel AirAsiaGo.com
YouTube Ads XXX airline AirAsia airline
Mobile apps
IMPLEMENTAION Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Facebook Twitter YouTube eDM Mobile app Campaign will cover winter season (June-August) 2 months 91 days
MEDIA CONSUMPTION Age 18-29 55% 56% First thing in the morning Last thing before I go to bed 40% Age 30-39 50% (Sensis Social Media Report, 2015) After work/in the evening Last thing before I go to bed
POPULAR MEDIA IN AUSTRALIA Facebook 1 YouTube 2 Wordpress.com 3 Tumblr 4 LinkedIn 5 Twitter 6 (Close, 2015)
BUDGET ALLOCATION Facebook: ≤ $90,000 YouTube: ≤$60,000 Mobile app (game) 20% Facebook 30% Twitter: ≤$60,000 eDM 10% eDM: $6440 YouTube 20% Twitter 20% Mobile app: ≤$60,000 Total: $216,440
Facebook Location: Australia Potential audience size: 350,000 people Maximum $989/per day (91 days) Estimated daily reach: 36,000-94,000 people
Twitter Potential audience size: 119,000-178,000 people Maximum $659/per day (91 days) Estimated daily reach: 17,000-26,000 people Estimated daily impressions: 22,000-33,000 people Estimated daily engagements: 591-887
YouTube Maximum $659/per day (91 days) $100=2,000 views Estimated reach 12,000+ views per day
eDM Send 300,000 emails per months 1 cent/per email Monthly access fees: $220 (91 days) Estimated cost: $6,440
CONTINGENCY PLAN • Use traditional media advertising campaign • Print ad: Newspapers Newspapers is the most effective ways to reach the target audience • Radio Radio commercial can be effective as television commercial Radio signal can reach in the large area Significants ratings of popular radio channels • Outdoor Advertising Also called as Out-of-home (OOH) Outdoor advertising can be use on billboard, buses, transit and taxi Outdoor advertising can use the visual element to build up the awareness
Reference List Advertise-YouTube. (2016). Retrieved form: https://www.youtube.com/yt/advertise/index.html Close L. (2015). 10 Most Visited Social Media Sites In Australia In 2014. Retrieved from: http://www.businessreviewaustralia.com/top10/1478/10-Most-Visited-Social- Media-Sites-In-Australia-In-2014 Facebook for business. (2016). Retrieved from: https://www.facebook.com/business Hilltop-Mail. (2016). Hilltop-Mail Email Marketing Pricing. Retrieved from: http://www.hilltop-mail.com/email_marketing_Pricing.php Sensis Social Media Report May 2015. (2015). How Australian people and business are using social media. Retrieved from: https://www.sensis.com.au/assets/PDFdirectory/Sensis_Social_Media_Report_2015.p df Twitter Ads. (2016). Retrieved from: https://ads.twitter.com/accounts/18ce54bqguh/campaigns/new
Reference List Amadeus. (2012). Ancillary services and the travel agent: The opportunities ahead. Retrieved from http://www.amadeus.com/web/binaries/blobs/535/778/Ancillary_services_ and_the_travel_agent_the_opportunities_ahead.pdf Australian Bureau of Statistics. (2010). Australian Social trends September 2010: Holidaying abroad . Retrieved from Australian Bureau of Statistics website http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/LookupAttach/410 2.0Publication29.09.103/$File/41020_Holidaying.pdf Australian Post. (2016). Travel trends: how Australians travel. Retrieved from http://auspost.com.au/how-australians-travel.html Kattiyapornpong, U. (2009). Profiling generation Y: Where do they travel?. Australian and New Zealand Marketing Academy Conference , 1-7. Retrieved from http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3137&context=commpap ers
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