Full Proposal New Elin

7/29/2019 Full Proposal New Elin

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AIRASIA SDN BHD ASPIRE CARD

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EXECUTIVE SUMMARY

We, the representatives of the employees of AirAsia Company would like to propose

for a new product which is a card that will give benefits to customers.

We would like to propose this new product because our airline company has lacked of

offering privileges to the customer. The first problem is that customers do not get any

privileges or benefits when they buy AirAsia products and services. Apart from that, there

are stiff competitions between AirAsia and other airlines companies which could affect

AirAsia revenue. Thus, we will introduce Aspire Card as our alternative to compete with

other airlines.

The objectives of this proposal are to provide more customers privileges(human

right) when they are using or purchasing AirAsia products and services, to be one of the

chosen airlines by travellers instead of choosing other airlines companies as well as to

increase more profit.

The basic procedures taken to prepare this proposal was by select a pro-tem

committee, call for a meeting to select Office Bearers/Club committee, identify a suitable

design to create the card, work up the budget for launching and produce the card and drafting

terms and conditions of the Aspire card.

The total cost is approximately RM 1,249,800 whereby initial payment is RM

1,123,300 and monthly expenses are RM11,500.

The limitations of this proposal are that there are stiff competitions between other

airline companies and AirAsia in Malaysia and there are limited destinations in launching

Aspire Cards.


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Company proposal

Air Asia Company Sdn. Bhd.

1.0A proposal to create a card.

1.1AirAsia Sdn. Bhd is one of the well established companies in the world. Its maingoal is to give the opportunity for everyone to fly by giving benefits to the

customers. In order to achieve this goal, the board of directors have come up with

a new idea which is creating a card. By creating this card, it will bring many

benefits to the company in terms of productivity, profits and much more.

1.2AirAsia Company chose Aspire as their card name which means hopes orambitions toward achieving something. This shows AirAsias desire to be one of

the top preferred airline companies by implementing Aspire card which give the

customers more privileges. There are 3 tiers of Aspire Cards that are Sapphire,

Ruby and Diamond. These cards have different specializations that will bring

different privileges to the customers.


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2.0Problem statements

1) Customers do not get any privileges or benefits when they buy Air Asia Productsand Services.

Many airline companies have provided more privileges for the customers. These

privileges have attracted more customers to go to their airlines. In contracts, Air Asia

does not offer more privileges or benefits when a customer buys their product and

services. To give customers more benefits, AirAsia must create a new product to the

customer which could give the customers more benefits as well as attract them to

purchase and use AirAsia goods and services.

2) There are stiff competitions between AirAsia and other airlines companies whichcould affect AirAsia revenue.

Airline industry has been facing with stiff competition due to the increased number of

airline companies in the sector. So, AirAsia should imply various strategies in ensuring

that it meets with the competitiveness in the economy. The strategies should include

low fare, best customer service, short-haul route and destination, reduction of operating

costs, internet services in its reservation system and quality management.


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3.0Objectives

1) Provide more customers privileges when they are using or purchasing AirAsiaproducts and services.

AirAsia does not provide more privileges for customer like other airline companies. By

introducing Aspire Card, customers can get more privileges and collect points by

purchasing Airasia products and services. The points earned by customers can be

redeemed with selected items, flight tickets, and theme parks.

2) AirAsia wants to be one of the chosen airlines by travellers instead of choosingother airlines companies.

Nowadays, there are so many airline companies in Malaysia such as Berjaya Air,

AirAsia, MALINDO AIR, MAS and many more. Mostly MAS is the chosen airline

company among other airlines. To be one of chosen airlines by traveller, AirAsia must

implement a new mean to improve its company as well as increase their profit.


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4.0Specifications of the cards

1) Collection of points.

AirAsia has decided for every RM100 spent by customer, they will earn 1 point.

Customer can spend their money in buying AirAsia merchandises, meals, ticket flight

as well as services and accommodations in Tune hotels all around the world.

2) Redemption of Points.

Every points earned by customers can be redeemed with selected items. The items

that AirAsia offered are, discount for the selected theme parks, AirAsia ticket flight

and as well as services and accommodation in tune hotels all around the world.

Discount will be given according to the level of the cards which are Sapphire, Ruby

and Diamond. The selected theme parks are Lego Land, Genting Highlands and

Lost World of Tambun.


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ASPIRE CARDS DESIGN

DIAMOND

A touch of luxury

RUBY

The ruby standard of a

rewarding lifestyle

SAPPHIRE

A deep loyalty


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3) Privileges of the cards

Sapphire card

Privileges for ticket flight :

Priority Boarding

Enjoy Priority Boarding which allows you to pre-board the aircraft at the

same time as First Class and Business Class passengers, even when youre

flying Economy Class.

Priority Check-in

Priority Check-In allows you to check-in for your flight at any available

Business Class counter, even if youre flying Economy Class.

Priority Reservation List

With Priority Waitlist, even if the flight that you requested is fully booked,

you will be automatically upgraded to a higher priority on the waitlist.

Excess Baggage Allowance

A 5 kg excess baggage allowance will be awarded to you whenever you

travel on AirAsia Airline. Not applicable for piece system

Privileges for Theme Parks and Tune Hotels :

Discount will be given 5% for every 30 points earned by customers.

Ruby Card


Priority Boarding




Priority Check-in


Business Class and First Class counter, no matter what class youre

travelling on.


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Priority Reservation List

With Priority Reservation Waitlist, even if the flight that you requested is

fully booked, you will be automatically upgraded to priority waitlist status.


An additional 50% excess baggage allowance over and above the

entitlement of your class of travel will be awarded to you wherever and

whenever you fly with us.



Diamond Card


Priority Boarding




Priority Check-in


Business Class and First Class counter, no matter what class youre

travelling on.

Highest Priority Reservation Waitlist

With Highest Priority Reservation Waitlist, even if the flight that you

requested is fully booked, you will be accorded the highest priority on the

waitlist.


Aspire diamond members have an excess baggage allowance of additional

100% over and above the entitlement of your class of travel.




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4) Term and conditions

1. There is no expiry date for Aspire points earned by customers2. Aspire card must be active within one year.3. This card can only be used to purchase AirAsia products and services.4. If the customers loss their card, AirAsia can imposed charge RM 50


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5.0Procedures1) Select a Pro-tem Committee.

To produce the new customers service cards, two representatives were elected from

each department to work on the proposal. The representatives were chosen to reflect a

true and fair view, unite the Air Asias employees and make sure the project develop

according to the plan. End of the selection period, it was decided to chose

representative from Human Resource Department heading the project.

2) Call for a meeting to select Office Bearers/Club committee.

Staffs in Human Resource Department were called for a meeting to inform themabout the plan to produce the new customers service Aspire cards. The company also

recruits the staffs to work under new group, Customers Care Unit which focuses on

developing the Aspire card.

3) Identify the suitable designs and name for the card.

The company has highlight that the most important part in developing new

Customers Service Card is the design itself. It is a psychological way to attract

customers attention towards the cards. The management has finalized several designs

before proceed with the selected one. In addition, the management also tries to find

the best name for the card. The card was named Aspire which mean hopes or

ambitions toward archiving something.

4) Work up the budget for launching and produce the card.

The company has done with many researches in order to estimate the cost to produce

the Aspire card. The total cost need to be defined first before initial deposit payment

need to be paid by the company. With that, the monthly expenses also can be

obtained. The costs allocate need to be including the administrative cost, advertising

cost, selling and distribution cost and also other related expenses. Besides, the

management also has to approximate the cost for the launching ceremony as it need

expose from the mass media to the public.


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5) Drafting terms and conditions of the card.

Customers always right. So, to maintain the customers right without any problem in

the future, the company has already developed the terms and conditions of the Aspire

cards. With that, the customers will know the limits on using the Aspire cards. In

addition, the customers will be more responsible of the Aspire card; as such the

Aspire cards must be active within one year.


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6.0Budget

ITEM QUANTITY

COST PER

UNIT

(RM)

TOTAL

COST

(RM)

Cost of product creation

1) Variable cost > 30,000 5.00 150,000

Launching expenses

1) Launch day 10,0002) Launching team (working/hour) 12 hours X

50L

20 12,000

3) Rental place for launching ceremony 20,000

Other Expenses

1) Printing expenses(A4 Brochure Printing)

300,000 0.08 24,000

2) Utilities (per month) 12 5,000 60,000

Advertising expenses

1) Electronic Media (40 seconds/each) 30 spots 1700 51,0002) Reading Materials Newspapers (white and black/weekly) 52 900 46,800 Magazines (colour pages/monthly) 12 5,000 60,000


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Marketing and selling expenses

1)

Utilities (monthly) 12 3,000 36,000

Administrative cost

1) Labour cost(6hours X 5days X 52weeks)

1560hours X

50L

10 780,000

Total Cost 1,249,800

Initial Payment 1,123,300

Monthly Payment 11,500


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6.1 Advertising Policies

The new service of AirAsia will be advertised according to below:

1) Advertising in mass media.

As the company has set up a launching ceremony, so the new service can we advertise

in various medium after the press launches ceremony. There are a lot of mass media

approaches that can be used. As an example: newspapers, business magazines,

advertise in television, business directories and etc. Other than that, we also can

advertise using the billboards.

2) Advertise in our own magazines the 3 sixty.

As the Air Asia already has their own in-flight magazines, we can use this advantage

by introducing our new customers benefit service in business segment. With that, we

can show the collecting points rates and the product that can be redeeming by using

the collected points. In addition, we can provide catalogues to show the product thatcan be redeem using collected points.

3) Advertise at the airport.

Air Asia not only advertises the new customer services in mass media but also with

their provided facilities. As an example, on the airport they can promote it at the

screens that show the travel destination. In addition, they also can use in seat in-flight

entertainment screen in the airplanes.

4) Advertise in digital marketing.

As we all know, digital media is one of the most favourable medium that preferred by

people today. So, one of the initiatives is advertise by using company websites. Other

than that, the company can use social application such as Facebook and Twitter to

promote the advantages that can be obtained by the passengers using the collected


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points. If there is any promotion regarding the redemption, it also can be announced

here.

6.2Launching Strategies

As the company already has the partnership with several hotels, so the launching ceremony

will be held in the selected hotel.

For launching ceremony in Malaysia, the company already chooses PARKROYAL Kuala

Lumpur, Kuala Lumpur.

For launching ceremony in Asian county, the company already Bangkok as there is numerous

number of flight to the county. So, with that Air Asia will have a lunching ceremony in JW

Marriott Bangkok Hotel, Bangkok.


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7.0Limitations

1.

There are stiff competitions between other airline companies and AirAsia inMalaysia.

In order to adjust with the stiff competition in the airlines business, airlines industries

tend to come up with various businesses models and business new strategies to be

competitive. Airlines adopt strategic model to expand their market reach as well give

better and satisfying service delivery to their target market. Besides, they also need to

come out with new attractive product.

2. There are limited destinations in launching Aspire Card.Even though AirAsia is one of the established companies, there is also limited

destination in launching the new card in other countries. It is because the number of

flight travelled in certain routes is not as much as any popular destination. With that,

the company has to decide for make a launching ceremony in popular destination

demand by the traveller.

Documents

Full Proposal New Elin