One of the early dashboards that was going around with the Audi Quattro Concept photos.
Tapsilog with @ahhnuld at Tselogs in Daly City. Picture perfect breakfast.
Internal-External Analysis
Based on the EFE and IFE matrices in the previous chapters, with the resultant scores at 3.05 and 2.65 respectively, the combined effect of the external and internal analysis falls in cell II for IFE TWS of 2.65 and cell I for EFE TWS of 3.05. The result of the above internal/External Matrix can be described as grow and buildstrategies; Intensive (market penetration, market development and product development) or integrative (backward integration, forward integration and horizontal integration) strategies can be most appropriate to this division.
Analysis and Interpretation Based on the above matrix, the total attractiveness score of market penetration, product development and market development is 6.25, 4.86, and 5.99 respectively. The highest TAS is market penetration that would mean it is the most attractive strategy among market penetration, market development and product development. Market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. This includes increasing the number of employees, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts. Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development usually entails large research and development expenditures. In airline industry, the company always pursuing product development, because customers increasingly are willing to pay more considering the convenience in service like flight booking, on time departure and arrival schedule, that they will experience. Market Development Strategy involves introducing present products and services into new geographic areas. This includes putting additional destinations not only locally but internationally.
SUMMARY Zest Airways started as Asian Spirit in 1995 but was sold to AMY Holdings, a holding company controlled by businessman Alfredo M. Yao, in March 2008. It was rebranded as Zest Airways, reflecting the flagship business of AMY Holdings: Zest-O. It operates scheduled domestic and international tourist services, mainly feeder services linking Manila and Cebu with 20 domestic destinations and one international destination, but has plans of extending and creating new routes both locally and internationally. Zest Airways takes pride in providing quality services to its customers and continues to improve them by acquiring brand new aircrafts that would provide more comfort and convenience during their flight. Zest Airways’ competitive advantages are the following: Quality of service, has well-trained employees, has online booking, has effective promotion strategies, has brand new fleets, and unlike other domestic and low-cost airlines, it serves free food and drinks. We have three identified major competitors- Philippine Airlines, Cebu Pacific Air, Air Philippines, and some other domestic low-cost airlines. Based on the Competitive Profile Matrix, advertising and market share has the highest bearing since these two factors are very crucial to the success of an airline, Zest Airways has the lowest score of 2.21 because it is was only founded two years ago and doesn’t have that much advertising and has a low market share although it is now increasing. Based on the EFE and IFE matrices in the previous chapters, with the resultant scores at 3.05 and 2.65 respectively, the combined effect of the external and internal analysis falls in cell II. The result of the above internal/External Matrix can be described as grow and build strategies; Intensive (market penetration, market development and product development) or integrative (backward integration, forward integration and horizontal integration) strategies can be most appropriate to this division.
CONCLUSION
We therefore conclude that the following strategies be implemented for the betterment of Zest Airways: Market Penetration, Market Development and Product Development. The list of the strategies under the above categories can be found on our recommendation. We believe that by doing these in-depth strategies. Zest Airways will truly be made known and eventually increase its market share.
RECOMMENDATION
Proposed Action Plan:
Under Market Penetration strategy we propose the following strategic programs:
1. Develop new advertisements to increase customer awareness
2. Improve their marketing plans that will accommodate customer needs
3. Conduct more promotions nationwide
Under Market Development strategy, we propose the following strategic programs:
1. Put additional international destinations.
2. Improve their competitiveness in terms of their facilities for convenience of foreign and domestic customers
Under Product Development strategy, we proposed the following strategic programs:
1. . Develop new technology or process that will easily give back refunds
2. Reduce delay of flights by implementing an on time guarantee arrival and departure of flightsZest Air’s directional vector is located in the aggressive quadrant (upper right quadrant) of the SPACE Matrix. This means that Zest Air is an airline with aggressive strategy and continues innovating for the industry.
Market penetration, market development, product development and diversification is positive for Zest Air
STRATEGIES:
Market Penetration
- They are penetrating the market by adding some destinations and by having a promo of travelling in selected countries in Asia.
- Airlines industry is growing rapidly that is why they should take advantage on penetrating the market to survive.
Market Development
- They offer some special packages in some destinations as a new segment to attract new customers as well as former customers to develop their market.
- They have ports in other places in Philippines so that they can serve not only people in manila but also people in other places.
Product Development
- They acquire new planes for their business
- They have flexible time for their departure and arriving schedule and for their reservation schedules.
- Their planes are providing the customers added space and comfort for their baggage.
Related Diversification
- Zest air has online booking and reservation to provide customer convenience and easy access to the company.
- They have also online community pages like facebook, so that they can easily attend to the concerns of their customers and to be able to know the feedbacks and comments of their customers regarding their services.
- They offer foods and drinks to satisfy their customers.
Zest Airways is a QUESTION MARK, this is because it has a very low market share
but retains a high growth rate percentage.
The thrust of the management is focused on:
· Accelerating profitability by introducing BRAND NEW aircraft
· Innovating marketing strategies.
The four strategies used by Zest Air: · Market Penetration Zest Air enters an existing market with a current services. · Market Development Zest Air is a domestic passenger airline with the mission to operate scheduled services to tourist destinations and secondary and tertiary airports where other airlines don’t dare to operate. Zest Air take advantage of the high growth rate to increase customers and to increase profits by this. · Product Development Zest Air has a total of 10 aircraft. Most of them specially designed for short take‐off and landing. 2x Airbus A320‐20 (162 seats), 3x DASH 7 (50 seats), 5x Xian MA60 (56 seats). Automated ticketing and online reservation available with accredited agent Filipino Travel Center. · Diversification Increase sales/profits with minimal or no investment by offering unlimited zest‐o to the passengers with no additional cost and having an online booking for easy and convenient reservations/booking or inquiries regarding of their flight. There are also some sites like facebook where you can do comments/feedbacks about your personal experience or problem with them.
Basis: EFE and IFE
STRATEGY ANALYSIS:
1. Market Penetration
The strategies to develop new advertisements in commercials and in billboards, develop marketing plans that will address all customers needs and developing more competitive marketing promotions will seek market shares for present products in present markets.
2. Market Development
A strategy to put additional destinations internationally will help zest airways by introducing them in new geographic areas.
3. Product Development
By offering different flight packages and discounts, giving different freebies on customers, and developing new technology or process that will easily give back refunds are strategies that will surely help zest airways to increase sales by improving or modifying present products.
4. Concentric Diversification
Byacquiring new planes for back up purposes of Zest air is a strategy of adding new but related products.
CPM Analysis
The most important factor in the airline industry is advertising as indicated by the weight of 0.20. This is because customers need to be aware of those airline companies to be able to know about their services, destinations, and fares. This is also a way to compare and choose between airlines.
Philippine Airlines is the highest in advertising because of numerous commercials, and although they don’t have commercials now, they are still well-established and majority of the people know about PAL. Zest Airways doesn’t have TV commercials but they have an advertisement on the credits part of Rated K (TV show) and they have facebook and twitter accounts and numerous print ads.Cebu Pacific has the biggest market share having 45.6%. It flew 5.4 million domestic passengers, half a million passengers more than the combined traffic of Philippine Airlines and PAL Express. PAL flew 4.9 million passengers; Zest Air, formerly known as Asian Spirit had 374,145 passengers.
Philippine Airlines has the most destinations having 31 international and 30 domestic destinations. Cebu Pacific flies to 15 international cities and 27 domestic destinations. Zest Airways has only one international destination (Incheon, Korea) and 20 domestic destinations.
Zest Airways has the cheapest fares among the three based on the fare comparisons we made through our research and based on our interview on Zest Air.
Based on our research, Philippine Airlines has the highest quality of service. Since Cebu Pacific tends to have more delays and customer complaints than the PAL, we gave it a ranking of 3 the same with Zest Airways.
Philippine Airlines has 41 aircrafts, Cebu Pacific has 29 aircrafts and Zest Air has only 6 aircrafts.
IFE Analysis
Based on the IFE Matrix, Zest Air Airlines scores 2.65, this translated into the fact the company is higher than average rate, and it has strong internal position.
Zest Air Airlines demonstrates a commitment to excellence which enables us to deliver high quality service in addition to delivering a positive experience so that every customer will be return customer. The company takes pride in the fact that they can quickly service any needs of their customers.
About me
POKER, BILLIARDS, DANCING, STUDYING, LISTENING TO MUSIC, GOING TO THE GYM, LAUGHING ALL DAY WITH MY FRIENDS AND LOVING MY HONEY IS MY LIFE :)
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