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MKT 2024 Marketing Management

Assignment 3 (30%)
Deadline: 27 June 2016
th

Title : Marketing Audit


(KLIA Airport)

Lecturer's Name : Miss Juliana


Group Members :
Cheong Wen Jun (15004617)
Nygel Raveen Segaran (13057625)
Faisal Nizam B. Quaza Nizamuddin (12025987)
Darryl (14029268)

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Table of Content

No Title Pages
1. Executive Summary 3-4

2. Company Background 5

3. Porters Five Forces 6-7

4. PEST Analysis 8-9

5. Internal Environment 10 - 15

6. Current Strategies
Consumer Evaluation 16
17
Competitor Analysis 18 - 20
Marketing Mix Strategies

7. Marketing Objectives 21

8. Criteria for Success 22 - 23

9. Conclusion 23

10. References 24 -

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Executive Summary

This report is commissioned to analysis how well KLIA is doing at the present and
evaluate the possibility of KLIA growth in future.

The research draws attention to the fact that the airport industry is stable to say the least
according to the Porters Five Model and PEST analysis. The reason of airport industrys
dominance power is due to the fact of monopoly nature and uniqueness of the industry. The
ongoing trend, events and development are also a contributing factor.

In the last financial year, KLIA has an improvement in the performance, with the increase
of year-to-date passenger traffic compared to the previous year. The landing charge of KLIA is
also among the lowest in the region. Conclusions drawn from SWOT analysis are as followed:
KLIAs importance in the transportation sector is its main strength, but the weak management is
a let-down for the KLIA. The way the world change to service sector-heavy provides opportunity
for KLIA growth, however fierce competition from other airports in the region posed a threat to
it.

For the current strategies, the report looked from three aspects. From the view of
consumer evaluation, major airport consumers are the middle-upper class with higher disposable
income. Consumer with travelling lifestyle is also a main consumer. Observation from KLIA
competitors draws some conclusions. Changi Airport benefits from the strategical geographic
location at the middle of the crossroad, but its highly automated facilities might be difficult to
older generation. Suvarnabhumi Airport has more connecting flights which cause to higher
usage, but it suffers from slow and limited expansion. Research in marketing mix gives another
insight for KLIA. KLIA uses price incentive like discounted user charges and provision of
market support. KLIA provides lounges as its product to the consumers. The place of KLIA is
Sepang which is geographically suitable. Promotion that KLIA provides is mainly for the goods
in the shop lots of KLIA. People of KLIA was awarded for its quality but it seems to struggle
from keeping it consistent. The process of KLIA is done through reservation and well handling
on baggage. Physical evidence of KLIA are flexibility to expand, automated system and direct

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routes with clear directions. Marketing objective for KLIA are establish itself in target market,
brand management and attempt to build customer loyalty.

The evaluation on criteria of success is also being done. The ongoing KLIA Aeropolis
plan has the chance to attract travellers to KLIA for leisure or business purposes that can be done
by accessing areas around it. Managing the brand image is also a criteria of success for KLIA
and it intend to do so by providing more varied choices for consumers and raising the service
quality of the staff. Becoming a regional hub is a criteria of success for KLIA as well. KLIA can
achieve it by providing high quality handling service and increase efficiency of the ground
handling service.

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Company Background

In 2015 the Kuala Lumper Airport was listed number 24 in the the World's Top 100
Airports this was an award that was given the Skytrax World Airport Award. This award
represents how prestigious accolades for the airport industry voted by customers in the largest
But what separates them from the other airports is the uniqueness in terms of having a duty free
that normal retail prices are slashed down to a cheaper price for travelers to buy, another
uniqueness it has is the Express Rail Link Sdn. Bhd in short its ERL it operates in the KLIA
express and also the KLIA Transit lines it is also known as the company that introduced high-
speed rail services to Malaysia.it connects to the airport and the city centre and it stops at the KL
City Air Terminal in KL central. So for a traveler its means of travel can be beneficial for them it
terms of convenience. In the 10th year of its operations in 2012, the ERL has successfully
transported 40 million passengers. In the year 2012 the ERL was named the Air Rail Link of the
year at the Global AirRail Awards. By the year 2014 it had received the Best Operator Award in
the Intercity and Urban Rail category and at the land Public Transport Symposium.(Skytrax,
2016 )

Besides, how KLIA differentiated from the other airports is by how it caters to the clients
in terms of business and the facilities that is being used, not only that but how KLIA plays a
significant role in the realization of Multimedia Super Corridor, this is beneficially technology
that is being used by the travellers to its maximum potential. Not only that but KLIA uniqueness
comes with the surroundings and the environment this is because KLIA is surrounded by a
rainforest that is all green, so this makes the environment relaxing for the travellers. Something
that is not common in an airport is the facilities that is able to accommodate to the interest of the
traveller such as the Formula One track that is located near KLIA that ensures entertainment for
the travellers. With that being said it is not common for an airport to have such a means of
entertainment, thus this makes KLIA unique to any other Airports.(Unknown, 2008 )

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External Environment

Porters Five Forces

The threat of new entrant in airport industry is very low. This is because the start-up cost
for an airport is extremely high. According to National Audit Academy (2012), the construction
cost for KLIA is RM 8.5 billion. With such cost it is highly doubted that there can be new
entrant. Technology requirement for a new entrant of industry is also unreachable. Fields such as
runway design, navigation aid, air traffic control and many more require a very high minimum
technology requirement to operate (Ashford, 2015). The posing threat of terrorism requires an
airport to use a very advanced security system, which also needs complex technology as well.
Legalisation is also an enter barrier into the industry. According to Malaysian Civil Aviation Act
1969 [Act 3], under part III, section 5A (1), the Minister of Transport may authorize any
company under a licence to establish, maintain and operate an aerodrome subject to such terms
and conditions as may be prescribed. That means without a license for building an airport, one
company cannot build an airport, as shown in part III, section 5A (2) (Civil Aviation Act, S.5A).

In terms of threat of substitute, airport industry faces low threat on that. Substitutes of
airport industry are those with the ability of transportation such as port, train, etc. One reason of
low threat is because of relative price and performance. Travelling via air costs more than its
substitute, but the time and speed of air transportation is incomparable. This might affect
travellers propensity to switch to the substitute. The building of Kuala Lumpur Singapore
High Speed Rail might provide an alternative method for people to travel between these two
places, but if one wants to travel to other places such as East Malaysia, airplane is still the top
proximity for them. This means the usage of airport will remain high.

The bargain power of airport suppliers is high. Supplies that an airport need includes the
airport equipment and the crew. These types of inputs have low differentiation as the requirement
is universal. However, the key factor here is the comparison of suppliers concentration and
industrys concentration. Industry concentration is low due to high enter barrier, while low
supplier concentration is because of technology requirement and government license. In
Malaysia, only a few companies are eligible of getting operating license from Ministry of

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Transport such as AgriQuip (airport equipment) and KLAS (ground crew and training). The lack
of suppliers might boost the power of suppliers (AgriQuip, 2013; KLAS, 2016).

The bargain power of airport buyers is low. Buyers from airport perspective include
travellers and airlines. The differentiation of airports output is homogenous, as every airport
provides same kind of services. Their number is also large. However, they possessed only small
bargain power. Reason of this is the substitute available. In present, air transportation is the only
method that can ignore the limitation of geography while being able to be fast and travel far.
Airport as the only gateway to access it naturally has the bargain power in hand. Besides, there
are limited airport in the area, with only two airports in Kuala Lumpur (the other one is Sultan
Abdul Aziz Shah Airport, which serves only domestic flight) (The Airport Authority, 2016).
Therefore, buyers bargain power is lower.

The industry rivalry of airport industry is intense. The number of competitors within area
is fairly high. For example, competitors of KLIA include Changi Airport (Singapore), Jakarta
Soekarno-Hatta Airport (Indonesia), Suvarnabhumi Airport (Thailand) and so on. As the
differentiation of product is homogenous, the only things that distinguish each airport are
hardware facilities and service quality of the staff. Intermittent over capacity is also a factor to
fierce rivalry. During some universal holidays and events (Christmas, Chinese New Year, World
Cup, etc.) the amount of travellers will raise sharply. Statistics from Ministry of Tourism &
Culture of Malaysia (2015) shows that December is the month with most tourist arrival in 2015.
The airports will compete fiercely to attract most travelers possible.

PEST Analysis

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From political-legal factor, airport industry looks dim in near future. Although the
building and operation of new airport is protected by the law (Malaysian Civil Aviation Act
1969), however the raise in price resulted by government actions might negatively impact local
air industry. Introduction of GST in 2015 drives up the price of domestic flight (AirAsia, no
date). This will discourage casual travellers to travel within country and as result, reduce usage
of KLIA. Tax aside, the incompetence of Department of Civil Aviation (DCA) doesnt help to
attract new airlines to use KLIA as a hub too. Recent news tells that European Aviation Safety
Agency (EASA) concern the lack of skill on Malaysias civil aviation authorities to monitor their
own airlines might jeopardise the safety of air travelling (Dubios, 2016). Surely this will hinder
the possibility for local air industry to become regional main aviation hub because of inability to
attract the airline to use KLIA. DCA also introduced new fees that sharply raise the operating
fees for the airlines using KLIA. For example, the new airline navigation flight charges (ANFC)
is 10 times the previous one (Sidhu, 2016). The sudden hike might chase away the airlines to
other airports, negatively affect local airport industrys advantage as a cheap and reliable aviation
hub in South East Asia. This means airport industry growth becomes even more slower due to
reduced usage of airports.

From economical factor, airport industry doesnt being too well at the moment. Currently
world economy isnt in a good shape. In one of his recent speech, IMF First Deputy Managing
Director David Lipsky said that global economy might soon be headed for economic derailment
(Matthew, 2016). People might become pessimistic and start to reduce expenditure as precaution,
including flight expenditure, which in turn will reduce airport usage. However, there are some
bright sides for the industry. Firstly, Malaysia currency rate keeps depreciating. Lower exchange
rate attracts foreign travellers into Malaysia and they enter via air, meaning they will pass
through KLIA and use its service. Also, it can make the passenger service charge looks relatively
cheaper than other airport in region. Data provided by DCA shows that the charge in Malaysia is
lower than most of the airports in the area (Sidhu, 2016). Relative cheapness might attract
airlines to use local airports. Secondly, the globalisation causes worldwide communication to
become more and more important. The needs for people to travel somewhere around the globe is
rising. This will increase the demand for air transportation and as result, increase the usage of
airports, including KLIA.

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Airport industry growth potential seems moderate from the view of social factor. This is
because of the rapid growing tourism industry. By 2015, contribution of tourism sector is 9.8%
of global economy, and it has been growing for last six years (World Travel and Tourism
Council, 2016). Aviation plays important role in this sector as 54% of international tourist travel
via air (Aviation Benefits Beyond Border, 2016). This leads to high usage of the international
airport around the world. The experts effort on soothing fears on air transportation is also a
reason. They have provided various statistics to prove the safety of a commercial flight
(Anxieties.com, no date). Their actions have increased socials acceptance on aviation. However,
socials fear on terrorism plays a big factor here. Threats on airport security includes easy access
on airport layouts, human fallibility, complacency and variable levels of airport security
(Southeast Asia Regional Centre for Counter-Terrorism. 2016). A bomb threat can disrupt
operation of airport, which happened in Shanghai recently (BBC News, 2016). The feeling of
unsafe keeps people away from air transportation and by this, the usage of airport including
KLIA reduces.

Technology factors gives a lift to airport industry. Equipment used by the airport is
consistently in top quality. For example, the introduction of Malaysia first fully automated self-
service bag drop system (Airport Business, 2015). There is also an ACI Airport Exchange
Conference which constantly introduce various new airport services and equipment (Airport
Business, 2015). The leading technology level make airport industry maintain its growth.
Development of aircrafts also increase the efficiency and capacity of one flight. One of biggest
player, Airbus, vows to keep developing to meet its eco-efficiency goals, and ensure that air
travel continues to be one of the safest, and most eco-efficient, means of transportation (Airbus,
2016). Its competitor, Boeing, is also want to offer airplanes and services that deliver superior
design, efficiency and value to the customers (Boeing, 2016). An increase in flight efficiency will
help airport like KLIA as the usage of it has increase.

Internal Environment

Statistics

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(Malaysia Airports Holdings Berhad, 2016)

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(Malaysia Airports Holdings Berhad, 2016)

In 2015, Malaysian Airport Holdings Berhad (MAHB) recorded a total of 112.0 million
passenger movements which was a 4.7% increase over the year 2014. Besides, International
traffic registered 49.7 million travelers, an increase by 1.9%, while domestic traffic registered
62.3million traveler movements with a growth of 7% in comparison to year of 2014. However,
KLIA has recorded a decrease of international travelers by 0.1% and an increase of domestic

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passengers by 0.3% for the year of 2015. Furthermore, the movements of aircraft for KLIA has
increased by 4% with domestic and international aircraft movements growth of 2.5% and 4.8%
respectively.

Domestically, airports in Malaysia registered a total of 83.7million traveler movements


with a growth of 0.5% in 2015. Internationally, a record of 40million traveler movements was
registered however it was a decrease of 0.4% in 2015. On the other hand, domestic traffic
registered 43.7million traveler movements which is an increase of 1.2% in the year 2014. In
December 2015, it hasthe highest number of passengers for the year of 8million. The traffic
performance in November and December was better than usual despite the negative growth.

KLIA travelers recorded 48.9million travelers, which was similar to the year of 2014.
KLIA Main handled 22.6million travelers which was 9.2% lower than year 2014. KLIA Main
decline was subject to route cuts by Malaysia Airlines and the shift of various airline operations
such as Jetstar Asia, Malindo and Lion Airs to KLIA 2.

Based on the table above, there is a 4.0% increase in KLIA aircraft movement with
domestic and international movements recording a growth of 2.5 and 4.8 respectively. According
to Graham (2013), in 2015, there are more than 60 airlines operated from KLIA to 133
destinations. Domestic and international sectors grew by 23.7% and 12.8% respectively. Overall
aircraft movements registered 19.3% in 2015.

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Based on the graph above, in 2015, to land a plane at KLIA, the landing charges in KLIA
cost around RM 3,075 which is considered the cheapest among the rest of the airports. Bangkok
airport comes in the second cheapest with the landing charge of RM 4,404. the third airport that
has the cheapest landing charge is Indonesia where is cost RM 5,140. the forth is Manila where
the landing charge cost about RM 5,770. the fifth is Singapore where the landing charges cost
RM 7,875. Lastly the airport that has the most expensive landing charges is Hong Kong where
the landing charges cost RM 8,372, Hong Kong and Singapore airport is considered the
expensive due to its country being the financial center in the whole of the Asia. However, this
might have a change due to new DCA charges.

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SWOT Analysis

Strengths

Being an international transportation hub, Kuala Lumpur International Airport holds a


vital position in the sector of air transportation. With the apparent worldwide economic
environment, and the development of various international across Asia, there is an increased
scope for improving the Kuala Lumpur International Airport.

Annually, an estimate of twenty million passengers go through the gates of Kuala


Lumpur International Airport. This particular airport has flights that operate to and from more
than sixty domestic and international airports. The vastly large structure of the terminal area of
Kuala Lumpur International Airport is equipped with a various facilities and services. KLIA
provides convenient parking areas through 2 multi-level parking lots that are located adjacent to
the main terminal. The terminal building of the airport consist of more than 20 restaurants which
serves a wide range of Malaysian and International food. Moreover, there are a number of coffee
shops and several stores that provide extensive shopping opportunities.

Weaknesses

Weak management is one of the weaknesses that KLIA is facing. It can increase business
risks and reduces profits for Kuala Lumpur International Airport, because they are responsible
for the health of the business. Managers role in KLIA is to provide useful service to the
consumers, but seeing that if they are unable to provide good service, naturally consumer will
gravitate to other airports that give better service but seeing that KLIA threat of entry is low
because there is no competition so consumer will still use KLIA as a means of travel.

Opportunities

The dynamic changes occurring around the worldwide economic environment has
impacted the air transport sector crucially. A vital aspect is that the service sectors such as
insurance and banking is expanding relentlessly. Due to the absolute changes in the human
resource planning around the globe, this results in a consequent change in the trend of labor force

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as well. With the help of information technology, economic forces around the globe have easy
access towards the work force from every part of the world. However, sectors such as the
tourism industry are most favorable for the air transport sector. Due to the liberalized rules and
norms in the international market, competition is certain in all fields. In the sector of air
transportation, the favorable environment for competition will consequently result in the entry of
new operators in this particular industry which increases the proportion of air transportation in
this industry. This increases the level of business in major airports. There will be more people
who rather air travel at a cheaper fare.

Threats

In Asia pacific region, there are many strong competitors that KLIA needs to face such as
Changi airport Singapore, Seoul Incheon South Korea and Hong Kong airport. Hong Kong
airport is often used as a regional hub in Southeast Asia because of its geographically advantages
position. In this situation Hong Kong enjoys sufficient demand for low cost airline operation.
With well-planned infrastructure and with a capacity to handle 35 million passengers annually
the Hong Kong airport is the finest one in the world. Analytical study of a wide range of socio
cultural factors is important for locating the factors which can cause potential threats and
opportunities. In this context, demographic movements and attitude towards quality of life are
important socio cultural factors. In the aviation industry the role of advanced technologies is felt
in general and especially in the areas such as in the case of distribution system and entertainment
improvement. As a firm with global operations, the business of KLIA is influenced by more
complex environmental situations which are affected by macroeconomic factors.

Another threat is bad economy which affect KLIAs business by decreasing the number of
potential customers. Bad economy has a significant impact which will lead to an increase in
costs. An economic crisis will result in a significant fall in the demand for the services provided
by the airline companies. As a complement industry, KLIA will be affected as well.

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Current Strategies - Consumer evaluation

For the customers travelling is based on the consumers income. There is are different
levels of income ranging from low, middle and high. A survey was undertaken by the Malaysian
airports on the low-cost travelers, and it is said that 67% of travelers are between the ages of 22
to 44 and they travel an average of once every two months. Furthermore, 43% of travelers are the
white collar with the high disposable income so the average amount of time they spend at the
airport is typically two hours.(Berhad, 2016) When purchasing from the airline business travelers
and high-end travelers bring substantial revenue and additional service this is by using frequent-
flier programs and other incentive programs. To those travelers who have high-income they
typically consume higher. This is because their disposable income is high enough to spend on
broad range of goods and services. In KLIA case, its strategy is to gather the data of the
consumer spending for the use of developing a marketing strategy and product that caters to the
travelers.(Investopedia, 2015 )According to Lim Khoong Chiu, those with middle and low level
income are typically young traveler with relatively low disposable income but with a high level
of interest in terms of travelling. So with that being said, lifestyle is another factor that can be
acknowledged for the travelers because they would want to go on a holiday, exploring and would
pick the cheapest flight to travel.

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Competitor Analysis

Changi Airport

Changi Airport is the biggest international airport in Singapore. The Singaporean


government approved its building in 1975 and the construction was done in 1981. The reason
Changi Airport is chosen as location is that the expansion can be done by land reclamation. Since
its opening, Changi Airport is famed for its high service quality. In the year of 2015, Changi
Airport around RM 6.5 billion of revenue. One of the Changi Airportstrength is its location of
Singapore which is one of the most important crossroad of the world. As compared to other
South-East Asian economies, this tiny nation's success lies in its strong trading links that it has
developed in the world economy. However, one of its weakness is that its airport is too highly
automated which causes difficulties to the older generation as they are often slower in adapting
to technological advances.

Suvarnabhumi Airport

Bangkok International airport or better known as Suvarnabhumi Airport has achieved the
highest international standards. The name Suvarnabhumi means the Golden land, it is located in
the Bang Phli District, SamutPrakan Province, the plot of the land occupies the area to
approximately 8,000 acres. After a series of ups and downs the New Bangkok International
Airport company was eventually formed in the year 1996. In the year 1997 there was an
economic instability that was noted in the Asian Financial Crises and the civil construction began
six years later in January 2002 by the Thaksin Shinawatra government. Bangkok International
airport has earned a total revenue of RM 4.49 billion in the year of 2015. One of the strength of
Bangkok International Airport is that it has more connecting flights in a week than its competitor
Kuala Lumpur International Airport whereby they have 123 more connecting flights in a week
compared to KLIA. However,one of the weakness of Bangkok International Airport is that its
expansion plan is slow and the size of its terminal is not enough to accommodate the large
amount of travelers that come through the gates of the airport.

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Marketing Mix Strategies

Price

According to Francis (2004), KLIA price offers incentive that has become an important
role of the airport that attracts low cost carries. Incentives are greatly used between airports but
have a traditional factor that offers reduction or discounts that the airport user charges or the
provision of the marketing support.

Furthermore, KLIA price incentive such as discounted airport user charges, KLIA
traditionally has been offered by airports as a one off payment, discounts or a scale that
diminishes over time. However, Graham (2003) states that the start-up risks is only shared until
the route becomes established and commercially viable but airlines often complain that discounts
should always be attainable. This has been a major source of friction between airports and their
airline in the past (Graham, 2003).

Besides, the provision of marketing support is another factor that an airport can offer
price incentive. KLIA is recognised as a fact that airports are resulted demand and that it does not
only conduct their own advertisement and promotional campaigns but it provides more effective
for them to support the campaigns via the intermediaries such as the airlines or even tour
operator. As mentioned before the intermediaries have a greater level of brand recognition among
the passengers with are the end users, they are able to penetrate the markets more effectively than
the airports, through aggressive marketing campaigns.

Product

KLIA is one of the major commercial airports in Southeast Asia and it is understood that
airport-related companies have the business dynamics. KLIA provide different kinds of product
to suit the needs of the customers. One of the products that provides by KLIA is lounges. KLIA
provides roughly around 120,000 square feet of premium lounges for airlines and ground
handlers for consumers. These lounges are solely offered to first class or business class
consumers. In order to satisfy their needs, consumers have to pay more to use this services.

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Place

The place in marketing mix for KLIA is Sepang. An important thing when considering
airport site is that the site must be relatively large, flat and free of tall building. It must also be
sufficiently close to populated area (Ashford, 2015). Sepang fulfill the requirement as the area is
relatively flat without elevation in large area. It is also surrounded by Kuala Lumpur, Shah Alam,
Seremban and Malacca while being reasonably close to these main cities (KLIA, no date).

Promotion

Promotion of KLIA is circumstantial, but the method is the same. The shop lots in it will
occasionally provide discount on their goods to attract customer for buying them. They will also
provide offers whenever there is festival nearby. KLIA also introduces Fly Deal which allows
travellers to get coupons and use it immediately while waiting for the flight. As airport, KLIA
also allows duty free purchases within airports shop lots (Malaysia Airports, no date). The
details of promotions can be get from airport website and will be updated constantly.

People

The people of KLIA is one of its strongest part. KLIA was thrice voted as the World's
Best Airport in the 2005 AETRA awards, 2006 ACI-ASQ awards and 2007 ACI-ASQ awards
(KLIA, no date). In 2015 World Airport Award, KLIA was rated 8th in best airport staff in Asia
(Skytrax, 2016). However, the customer review from Skytrax varies a lot. Majority of customers
rate the staff of KLIA poorly while some rate the staff highly. This might be due to inconsistency
of service quality. Overall, there is still room for improvement in people.

Process

In an airport a process is followed so that the consumer that travels using KLIA will feel
a sense of organisation and comfort. So the process mix starts off with reservation where
consumers are categories in terms of low, middle, and high class travelers, so that KLIA will
know how to service their consumers based on a systematic reservation. Next is the flight
information where KLIA provides the necessary information about the flight schedules. Baggage

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handling is a process that KLIA takes into consideration, when the travelers hand in their
baggage KLIA handles the luggage and place it in the plane before the travellers entry. With all
that said, KLIA finds it important to implement good quality of service in order to maintain their
reputation.

Physical Evidence

The airport was designed in a way where it would have flexibility to accommodate any
changes in the future. KLIA was built at a location whereby it has vast land spread nearby in
cases of new developments in the future. Now, it is evident that this concept is true with the
development of KLIA2 to accommodate more passengers that travel to Kuala Lumpur.
Moreover, there are quite a number of modern automated systems around the terminal of KLIA
to minimize operating costs. A few examples would include the conveyer belt for transferring
baggage from the aircraft into the airport and the travellator to provide ease for passengers who
have to hand carry heavy baggage. The terminal building also provides simple passenger routes
and signs such as exit signs, toilet sign, departure hall signs and many more.

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Marketing Objectives

When dealing with clients it is good to set a marketing objective to be able to follow by
it, so that goals can be reached. Every organization has to have a goal and to be able to push the
organization forward to achieve great heights. Even an organization like KLIA has their business
objective so that their business will be able to attract their respective target markets. For instance,
KLIA approach to improve product awareness, an approach to help spread KLIA name is to
develop a website that provides all its necessary information for the consumers to view.
Furthermore, traditional advertising such as newspapers and magazines helps grab the attention
of the consumer by the advertisement that is prominently displays KLIA product and services so
that it expands its value.

Another objective closely looked at is brand management, KLIA has obtained the title of
recognised brand without any further explanations. There are areas where KLIA can improve and
make their brand management better. An approach that a KLIA can do is run advertisements that
has simply images that can illustrate what KLIAs product and service is about. So by this
approach this will remind consumers about the brands rather than promote a particular product
and service. KLIA can also achieve this by improving the service quality.

Besides, customer loyalty is a key objective seeing how passengers who are frequently
travel using your airport rather than alternating with other airports. So to be able to increase
customer loyalty is being able to provide the ideal objective. But in order to obtain information
about the customers, airport marketing departments should commission surveys to better identify
the key variables influencing customers and their airport preference.

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Criteria for Success

KLIA have a masterplan of developing phases. A project name KLIA Aeropolis has been
launched based on the concept of airports building cities. From being a major transportation
interchange, KLIA has evolved into a becoming a blossoming centre of economic activities by
providing services not only to travelers but also to shippers and businesses alike. At present,
KLIA Aeropolis serves as a multimodal business nexus that provides for the aviation, air cargo,
aerospace and logistic industry which results in further economic growth domestically on the
international business stage (Malaysia Airports, no date). For example, Mitsui outlet park located
at Sepang is part of Aeropoliss plan. It provides leisure such as food eateries, shopping outlets
and many more for luxury travelers. If this plan is successful it can attract a lot of travelers
across the globe. So this will serve as a means of success cause of the outlets that will provide
and advantage for the travelers to utilizes.

KLIA also emphasizes on brand management. The image of the company is important as
it will enhance the KLIA reputation if they provide excellent goods and service, for instance staff
that handle the baggage claim should handle passengers baggage or items with care especially
the fragile items. Furthermore, KLIA can improve their business level by inviting more outlets.
As a suggestion, having a food court for the moderate class to consume. Moreover, the duty free
outlets should provide more duty free items such as more variety of perfumes, chocolates,
alcohol, and many more. This will provide many variations to the luxury travelers that tend to
have loyalty towards a specific brand. Besides that, variety of restaurants such as Starbucks,
coffee bean, McDonalds and other outlets in KLIA is also welcomed. Besides, KLIA should
improve the staff service in term of ethic, punctuality, and language so that the travelers will not
have any complaints about the staff.The customer review states that it is generally negative due
to the many complaints and dissatisfaction based on the poor handling of baggage, and rude staff.

KLIA also strives to become the regional hub. At present, it faces competition from
airports like Changi International Airport and Don Meung International Airport. Besides it also
faces some disadvantages such as geographical location and a hike on Department of Civil
Aviation so a few recommendations that KLIA can do would include providing good service
base on lower price or giving discounts on items. Since KLIA charges among the lowest

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handling fees in the South East Asia Region, if they can maintain their ability to provide high
quality service they are more likely be able to convince more airlines to use KLIA as a hub in
South East Asia. The efficiency of aircraft ground handling must improve as well to attract more
airlines to use KLIA. An airline only make revenue when they are for flying. Therefore, if KLIA
reduce the ground handling time the airlines might be more satisfied with the service. The
criteria of success for KLIA is to defeat Changi Airport or at least to keep ahead of its regional
competitors such as Bangkok or the Indonesia airports. This is to gain a competitive advantage in
order to meet these criteria to be able to beat the respective airports.

Conclusion

The prediction on how KLIA will its seems that it is not possible for Changi Airport to be
overtaken by KLIA yet. There are some negative factors that also effect KLIA effort on
achieving this however, it still has the potential of overtaking Changi Airport and others. At this
stage it is able to keep ahead of airports in the region like Bangkok international airports. In
short KLIA is worth the investment for the time being.

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Company back

http://www.everything-kuala-lumpur.com/Kuala-Lumpur-Airport.html

Consumer evaluat

http://www.klia.com.my/index.php/international-arrival/59.html?
m=media_centre&c=news&id=96

http://www.investopedia.com/ask/answers/041315/how-much-revenue-airline-
industry-comes-business-travelers-compared-leisure-travelers.asp

Competitor Analysis

http://businesscasestudies.co.uk/singapore-airlines/developing-a-competitive-
edge/swot-analysis.html#ixzz4CfISBoML

26
http://www.airportsuvarnabhumi.com/about-suvarnabhumi-airport

7p's

http://tourismintelligence.ca/2005/11/15/adopting-a-leisure-orientated-marketing-
mix-some-challenges-and-opportunities-for-airports/

http://www.klia.com.my/index.php?m=airport&c=info&id=1&aid=1

http://www.malaysiaairports.com.my/?m=promotions

http://www.malaysiaairports.com.my/?m=airport&c=info&id=1

http://www.worldairportawards.com/Awards/best_airport_staff.html

http://www.airlinequality.com/airport-reviews/klia-kuala-lumpur-airport/

Marketing objectives

http://smallbusiness.chron.com/increase-brand-awareness-product-41158.html

http://conversionchamp.com/sales-techniques-increase-sales/

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