Market Segmentation And Target Market Analysis For Malaysian Airlines

Business Classification of MAG

This marketing plan demonstrates the Market Segmentation and Target market analysis for Malaysian Airlines. This report will discuss target consumers in favor of Malaysian Airlines. Moreover, it also critically evaluate the Consumer Behaviour of Malaysian Airlines targeted customers. Further, it discusses marketing objectives for Malaysian Airlines that will be accomplished in the upcoming 3 years. At last, it also discusses the marketing mix actin plan for 3 years with respect to Malaysian Airlines.  

MAG (Malaysia Aviation Group) is a national aviation company with equity investments and subsidiaries. It classified their business in different groups like Ground Services, Aircraft Leasing, Talent Development, and Transportation Services. In addition, it is examined that this group structure was developed to drive effective transparency and concentrated top management across a particular operating firm, developing profit subsidiaries of the firm’s separate trades. It ensures loss and profit responsibility and solves the different aspects by lashing new levels of operational effectiveness (Malaysia Airlines, 2019). In addition, it is examined that the profit and loss account of the firm relies on a different value of assets. It also facilitates to perform many activates related to the accomplishment of their task. Furthermore, it is found that Air Transportation offer the largest services to the specified consumers and leads to get huge amount of competitive benefits. An organization provides many services to their consumers that will be effective to meet the aim and objectives of the research matter.

The segmentation of market is an imperative tool for classifying market, customers, and products on behalf of different factors for increasing the sale of organization and reach the valid conclusion. There are many factors that might be considered by the firm at the time of classifying their products like demographic factor, psychological factor, psychographic factor, behaviors, and geographic factors (Zutshi, et al., 2016).  Moreover, it will lead to the firm to simply sell their goods and make its diverse image in the marketplace (Suki, 2014).

Segmentation variables

The market targeting is the tool that is practiced for focusing on the small unit on people on the whole market. Malaysian Airlines will focus on these factors like demographic, psychographic, geographical, and behavioral factor and operate their business at the global level.       

Demographic factor

As per the demographic factor, the organization has mainly targeted the people who come in the age group of more than 14. It is evaluated that more than 25 years of people are more used this Airlines. Hence, the organization could mainly focus on those consumers who are high income. It could offer many attractive offers to their loyal consumers on a specific occasion. It could mainly focus on the consumer who comes in the age group of 14 to more than 35. In addition, the quality of services is standard hence the organization determined a higher price for their consumers to reach the valid conclusion. Another component is the social inspiration of behavioral classification and expectation, which can be practiced by Malaysian Airlines to classify by Malaysian Airlines to classify the market. Consequently, it could contribute to increasing the profit and revenues of the research outcome (Stadtler, 2015).         

Factors of Market Segmentation

Psychographic Segmentation 

In this classification, the organization will segment the market on the basis of consumer attitudes and lifestyles of the consumer. Through this, the organization could set their price for influencing the behavior of consumers and lead to get a favorable decision. As a result, it could also contribute to maximizing the revenue of the firm.   

Geographic Segmentation 

Malaysian Airlines could segment their market by considering different elements like national, international, and regional to capture the attention of a huge number of consumers and reach a valid conclusion (Varley, 2014). In addition, it is evaluated that occupation and income are considered by Malaysian Airlines to reach a reliable conclusion. It will facilitate the organization for getting higher profit (Schaltegger, Burritt, and Petersen, 2017).           

Behavioral Segmentation 

The behavioral approach could be effective in the accomplishment of the company’s task. Malaysian Airlines could lead to an individual in the attainment of the organizational task. It could be effective in the influencing huge number of consumers about Airlines service. Moreover, Malaysian Airlines could concentrate on the classification with the loyal class but it should offer a special discount to their potential consumers and make a positive relationship with them. It could also lead to retain them for the long-term. It can also provide different services like a comfortable atmosphere and quality services to their consumers. It will be imperative in the attainment of the organizational task in limited time and cost (Sengpoh, 2015).   

Malaysian Airlines could target to their customers on behalf of certain elements such as behavioral, demographic, and geographical elements. An organization has mainly focused on the urban area of people to deliver their services due to the higher prices. A higher price cannot be affordable by the people who are living in a rural area. In addition, it is examined that the organization could focus on both males as well as female to offer their services. In addition, it is evaluated that Airlines services are consumed by both genders (Parveen, Jaafar, and Ainin, 2015). This Airlines also offers delicious and healthy food to their consumers that could also retain their consumers for long-term. It would also be imperative in the process of decision making. Moreover, these Airlines should need to use a cost-effective strategy and offer their services at a lower cost due to the increasing sale of the firm. As per the psychographic elements, Malaysian Airlines could target to consumers who offer their preference to the quality and comfort rather than pricing.                             

Marketing Objectives for Malaysian Airlines

Positioning statement 

Malaysian Airline will concentrate on those consumers who give more value to their time as it saves the time of consumers. It could also facilitate to comprehend the people who wish to have quality services rather than normals services. Prices of Malaysian Australian is quite costly as compared to other Airlines. In addition, it is evaluated that there are certain elements that might be considered by the firm to attract a huge number of consumers like modern technology, comfortable atmosphere, and prompt services (Parsons, Maclaran, and Chatzidakis, 2017).  In addition, a fim could imply  innovative technics to meet tgeir targetd goal. In addition, it is also evaluated that employee training and development method is vital in retaining employees in the long-term. It could also help to create a favorable picture among consumers by enhancing the level of service and will provide the added value to the consumers. In addition, it could also be imperative in leading consumers to pay hike rate for offering a comfortable atmosphere. It is explained that there are certain factors that might be considered as a research tool that could be effective in the attainment of the company’s goal (Noor and Kumar, 2014).   

Consumer buying behavior

The behavior of a consumer is determined as a selection of certain process like selection, purchase, use, and dispose of ideas towards products and services for gratifying their needs and requirements. Moreover, it is evaluated that there are certain activities that activities of consumers in the market and fundamental inspire for inspiring needs of consumers (Mosbah and Al Khuja, 2014).      

Physiological Need

Psychology needs could facilitate to the firm for comprehending different factors that could affect the behavior of consumers towards the specific matter. In addition, it is evaluated that organization could consider different sources such as hygienic environment, superior quality of food, and comfortable atmosphere. It could also lead to comprehending such factors in depth and support to make a favorable decision. Moreover, it is examined that the Airlines industry is imperative in getting a favorable outcome.    

Protection and Security

This need could demonstrate the second step of the pyramid wherein Malaysian Airlines focus on providing the security and safety assurance to their consumers. In this component, Malaysian Airlines could show quality as well as comfort in flying of plans. Consequently, it would be effective for accomplishing the desired goal of the firm. It will increase the revenue of the research outcome (Leong, et al., 2015).   

Love and Belongingness

This step could consider the certain elements named family, intimacy, and friendship. It would need the facility to the organization for making the liaison between the firm and customers. Hence, Malaysian Airlines could generate the opportunity to the firm for making higher productivity in the least time and cost.        

Esteem

In this step, consumer needs are associated with appreciation and recognition feelings. Moreover, there are two different factors that might be considered as the esteem like needs of consumers are high as well as lower (Kotler, Keller, Ancarani, & Costabile, 2014).  Through this way, the lower need of consumer could concentrate on recognition as well as appreciated by different consumers. In addition, it is evaluated that there are certain elements, which are considered as the esteem named self-esteem, independence, freedom, and achievement. Hence, the organization should concentrate on such elements to fill the self-esteem needs of consumers, which will impact on the productivity of the organization.              

Self-actualization

Self-actualization could need to determine the individual growth and accomplishment of a consumer’s need. Moreover, this component has relied on self-need and individual drive of a consumer at a strong point in a strong point. Malaysian Airline could include such a need in its approach to sustaining its consumers (Kim and Mauborgne, 2014).  

Marketing Mix Action Plan for 3 Years

Social factor

There are certain elements like the reference group and social classes that might influence the behavior of the consumer. Therefore, Malaysian Airlines could facilitate to offer certain sort of amenities such as festive season, discount on weekends, and attractive ticket return policy. Moreover, it could be imperative for providing luxury services to their consumers for a healthy atmosphere at the working place. Following have certain social elements that might attract a huge number of consumers to purchase goods and services of a firm (Gummesson, 2017).               

Reference groups

The reference group is effective for spreading reliable information towards the organizational goal. The perception of reference could be different as per products and services. For illustration, if goods and services could be perceptible such as flight facilitates then it attracts the reference group in the least time and cost. It could be informal as well as formal. Through this method, friends, schools, and peers are informal references for the group (Guercini, et al., 2014). In this, it is found that association, religious, and clubs are could be effective in the accomplishment of the organizational task. In addition, clubs, association, and religious is determined as a formal reference group. It is evaluated that a consumer could also be known as an informal reference group while celebrities could be determined as the formal reference group. Malaysian Airlines select the celebrity to attract a huge number of the consumer for using services of Malaysian Airline. Celebrity could directly influence an individual towards any products and services.  

Social Classes

Each society considers different social class which is required in the marketing of a company’s products and services. The consumer buying behavior fully relies on the social class. Therefore, the company should consider the social class to perform marketing practices. In addition, it is examined that social class could have a favorable impact on the buying behavior of consumers. Apart from this, the disposal income could directly impact on all class of society (Ghaderi, Mat Som, and Wang, 2014). In addition, it is examined that high-income people give more preference to have Airline services as compared to lower income level people. Moreover, low-class people have less capacity to the consumer the services of Airlines. Hence, it is examined that the social class could affect the decision making of consumers towards any goods and services.        

4 Ps

The marketing mix is effective for promoting goods and services and facilitates to make a positive image in the marketplace. It could contain four factors like the product, price, place, and promotion. These are discussed below:     

Product

Malaysian Airlines is leading by the Airlines industry that facilitates different kinds of service as it could be associated with intercontinental, domestic, regional, international, and schedule services. Moreover, product strategy leads to an organization for offering unique features in their services and differentiate goods and compared to the market player. This organization delivers a wide category of services to their consumer, which could be vital in improving the satisfaction level of consumers (Carlsson-Wall, Kraus, and Lind, 2015).     

Price

Price strategy will lead to the organization to select a unique method of price and influence a huge number of consumers towards products and services of the firm. Malaysian Airline has use price premium strategy wherein it will decide to deliver their services at a higher price as compared to other Airlines industry (Calisir, Basak, and Calisir, 2016). It is examined that Malaysian Airline delivers premium products and services to their potential consumers for increasing the sale of goods and services. Moreover, it is evaluated that Malaysian Airline could more prefer the higher class people as compared low-class people to deliver their services. The organization should use offer the vouchers facility to its potential consumers like $30 vouchers for collecting 2500 points. It could offer shopping card to their consumers, which will be effective for mechanically recording purchasing decision. In addition, it is examined that this organization could offer a suitable discount to its consumers and make a favorable decision (Bharti, Agrawal, and Sharma, 2015).   

Place

The place is another imperative concept for an organization to effectively operate the business and leads to get a reliable outcome. This organization has mainly focused on the region to deliver their service. It also focuses to entail feature on behalf of the culture of the region and make a long-term relationship with their consumer. It could lead to attract new consumers and retain the existing consumers, which will lead to getting higher competitive benefits. Furthermore, it could be effective to change the behavior of consumers towards specific products and services (Amann, et al., 2014). Moreover, it is evaluated that this organization will deliver their services with high quality that could be extended from the expectation of consumers as it would lead to getting a favorable result.

Promotion

Promotion is also an effective approach that positively impacts on the behavior of consumers towards buying any goods and services. Malaysian Airlines could use the innovative tool to endorse their Airline services and retain their consumers (Al-Jader and Sentosa, 2015). In addition, it is evaluated that Malaysian Airlines could also offer the scheme of loyalty to their consumers like ticket discount. Furthermore, it is evaluated that Malaysian Airlines could also use social media to attract a huge number of consumers by directly meeting with them. The organization could consider different sources to directly meet with the consumers and comprehend their experience and needs towards Malaysian Airlines and other Airlines such as Facebook, YouTube, Google, Instagram, and Twitter. This organization has also practice newsletter and magazines to spread the awareness of goods and services (AlBattat, and MatSom, 2014). Consequently, it could be effective for attracting a huge number of consumers towards the purchasing decision. It offers simple accessibility and obtainability to consume that develop loyalty among a huge number of consumers. Malaysian Airlines could offer extensive discounts for their potential consumers. It could also provide gifts and conduct different promotion method by considering the online media tool. This organization could also use the occasional discount to its consumers and make a favorable decision towards the organizational task. In addition, it is also examined that a wide promotional tool could assist the organization to reach the specified target and make higher competitive benefits in the marketplace (Acar and Puntoni, 2016).                          

• To increase the revenue by entailing innovative tool by 40% in the upcoming 12 months
• To enhance market share by implying a premium pricing strategy by 30% in the next 18 months
• To increase consumer demand by using online modes by 20% in the next 6 months

The marketing plan could lead to activities that will be accomplished in the marketing as it is shown by the following table:

With respect to the above table, it can be illustrated that there are many activities that will be considered as marketing activities such as identification of the problem, market research and development, and product development. Others are creating pricing strategy, addressing placing strategy, develop sale promotion by considering different channels, and follow up. It is also addressed that Market research and development activity takes more time as compared to other marketing activities.

Conclusion

As per the above discussion, it can be summarized that marketing segmentation is an imperative tool for classifying their market on behalf of different factors like demographics, geographical, behavioral, and psychological factors. The main cause of selecting these causes is that organization desire to classify their goods and make higher competitive benefits. It can also be illustrated that target market analysis could be imperative to evaluate the market and identify the people to which organization will deliver their products and services. It can be summarized that the organization could evaluate the factors that might affect the Consumer Behaviour for increasing the sale of the organization in the least time. It can also be illustrated that organization makes marketing goal as well as a marketing plan that will be accomplished in the upcoming 3 years and get higher competitive benefits 

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