PRICING STRATEGY
Hafiz Fitradiansyah
Arini Falahiyah
Akbar Maulana Firmansyah
Salsabila Hana Haninda
Erryx Setiawan
- 042014353009
- 042014353012
- 042014353017
- 042014353021
- 042014353028
TRULY
LOW COST
THE AIRASIA LOW-COST MODEL
RESTS ON THREE PILLARS
LOW COST CARRIER
is an airlines that offer lower fares
and fewer amenities
than traditional full service airlines.
TARGETS
The low to middle
income group
The cost conscious
travellers
Point-to-Point
Network
High Aircraft
Utilisation
No Frills Equals
Low Fares
All short-haul AirAsia flights
(for-hour flight radius or less) &
medium-to-long haul AirAsia X
flights are non-stop
AirAsia is known for its
relentless focus on high
turnaround of flights
Frequent flyer miles and
airport lounges are a strict nono. Passengers have the choice
of paying for in-flight meals,
snacks and drinks
RESULT
No need for human
resources & infrastructure
at transit locations
BENEFIT
Huge cost savings
25
Turnaround time in minutes,
among the fastest in Asia
RESULT
More frequencies,
more routes
BENEFIT
Customer convenience,
Greater cost efficiencies
RESULT
Lower fares
BENEFIT
Ancillary revenues
UNDERSTANDING PRICING
PRICING IN DIGITAL WORLD
BUYERS CAN
SELLERS CAN
Get instant price comparisons from thousands of
vendors
Monitor customer behavior and tailor offers to
individuals
Check prices at the point of purchase
Give certain customers access to special prices
Name their price and have it met
Get products free
BOTH BUYERS AND SELLERS CAN
Negotiable prices in online auctions and exchanges or even in person
SETTING THE PRICE
What to consider to set our price? (Strategy)
COMPANY
OBJECTIVE COMPANY
COST PRODUCTION or OPERATION
CUSTOMER
PREFERENTIAL
MARKET PRICE
DEMAND
COMPETITOR
TARGET MARKET
PRODUCT
POSITIONING
PRICE
ADAPTING THE PRICE
Geographical Pricing
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Barter
Compensation
Buy back arrangement
Offset
Promotional Pricing
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Long leader pricing
Special pricing
Special customer pricing
Cash rebates
Low interest financing
Longer payment terms
Warranties and service
Psychological discounting
Price Discounts and Allowances
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Discount
Quantity discount
Functional discount
Seasonal discount
Allowance
Differentiated Pricing
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Customer segment
Product-form
Image
Channel
Location
Time
INITIATING AND RESPONDING TO PRICE CHANGE
Initiating Price
Cuts
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Low-quality trap
Fragile-market-share trap
Shallow-pockets trap
Price-war trap
Initiating Price
Increases
Price Changes
How to Anticipate?
How to Respond?
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Delayed quotation pricing
Escalator clauses
Unbundling
Reduction of discounts
THANK YOU
Now Everyone Can Ask