Marketing elements and its elements (Part 7)

It is among the few airlines that has explored the frontier of introducing air services that can be run and operated on the basis of using technology that is renewable and ecological friendly. At present no other airline is offering such innovative price and packages to their consumers. With the help of all these distinctive features and characteristics AirAsia has ample opportunity to establish its strong and stable base in the region which can be effective for the organization and all other related stakeholders in the long run.

Q. Propose new positioning for a selected product/service

Positioning Strategy

The concept of positioning stems from the fact that consumers always have a certain perception of the products and brands on the market. Positioning the company to identify the product or brand in the consumer's mind, clearly indicating its difference over competitors. This is the place of the brand or outlet in the consumer's mind that he is clearly different from its competitors and meets the expectations of the target.

AirAsia has established its positioning strategy as cost differentiation policy and positioned the airline as a low cost airline which is very affordable to the middle class families. This positioning strategy provides a solid ground to AirAsia to fight against their customers in order to achieve the major market share.

Q. Explain how products are developed to sustain competitive advantage

How to sustain competitiveness?

Scholars are of the opinion that value and competitive advantage can be created either by reducing the cost of the product or differentiating the product from other similar products (Ceccagnoli, 2005). In order to sustain its competitiveness, AirAsia faces the constraint of presence in emerging markets, whose growth rate is high.

Homogenized in a market, AirAsia avails the benefits of high volume of customers. Such a configuration would allow a division of labor across the world to specialize areas of activities for which they offer comparative advantages and cross-flow generating assets and services in a liberalized world trade. This implies that the convergence of the request is made possible by the reduction of differences in development levels between countries, a relative homogenization of lifestyles (urbanization, highways) and shared cultural references. The heterogeneity of the world would be more than the specific resources.