preview

Malaysia Airlines System

Better Essays

Abstracts

The purpose of this paper is to illustrate the importance of studying the internal and external market forces that could contribute to a company’s sales decline. This piece also delves into the ensuing strategies-revamp in the corporation’s marketing mix to counter declining sales. As a scenario, this study would be taking the point-of-view of a Marketing Manager idealising and justifying the team’s actions in a sales boost bid.

For this paper, studies would be based on the national carrier of Malaysia, Malaysian Airlines System (thereafter referred to as MAS). They have been dogged by continuous sales decline since the beginning of this decade. In the beginning of 2006, the company recorded some RM 10 billions of loss for …show more content…

This reduces the sales-ability of the airliner amongst their newer target market under the BTP plan, leisure travellers. As such, albeit knowing the unpopularity of imposing surcharges to attract customers, it was a necessary move.

Public doubt

Despite being honoured with international recognition awards (numerous Skytrax awards, www.airlinequality.com ), MAS brand image does not convey these achievements. Years of highly publicised failure in previous management has instilled public doubt over their credibility. A weak image would definitely reduce sales number.

Quoting an example 31st May 2005, a well-renowned paraplegic, Peter Tan who writes for New Straits Times’ Monster blog, (www.monsterblog.com.my) publicly inquired MAS crew competency after his wheelchair was damaged whilst in flight

and their refusal to offer any assistance thereafter. His widely-read letter of complaint catapulted other dissatisfaction towards MAS publicly into national interests.

Competitor’s pressure

MAS has strong competitors on all fronts of its low-cost yet full-service portfolios. Even after the rationalization of domestic flights, Airasia continues to threaten regional sales due to their floor pricing policies. Furthermore regional airline powerhouse, SIA boasts spotless-clean full service international routes, strongly contending against MAS in terms of destinations, service and speed.

These pressures have significantly subdued MAS’s

Get Access