The NEWCO: Established a Low-fare Airline in Asia

The marketing mix is composed of four elements: product, place (distribution), price and promotion. The integrated communication program determines the audience, campaign and corporate identity based on this marketing mix, which includes the proposition and brand awareness on which the rest of the campaign will be based.
The product that NEWCO is developing is a low fare airline serving secondary airports in Asia. This is a relatively new concept for the Asian market, which has been dominated by protected domestic carriers. The low fare airline can also take advantage of new developments in aircraft technology that is emphasizing point-to-point service over the traditional hub and spoke system. The hub and spoke system is common in many parts of the world, including Asia, in part because of geography. For many years, Japan was the only country in Asia that was within reach of the western coast of the United States by aircraft, so it was in Japan that the first hub developed. Passengers flying to Asia flew first to Japan and then onward to their final destinations. As the range of aircraft increased, however, the advantages of point-to-point flying became obvious, particularly for flights into and out of Asia. This can be a long trip for passengers from the United States.
For these reasons, it is critical that the company is able to test its marketing communications to determine its effectiveness. There are many different ways that this can be accomplished, but the survey technique can be particularly effective with passengers who purchase tickets. These passengers can be given a survey on the plane to determine how they learned about NEWCO and their overall experience with the airline given the expectations raised by the communications program. Similar surveys can be posted on the company's Web site to determine whether the company is building brand awareness at the rate that it considers appropriate, and whether it is successful at attracting new customers from the existing pool of travelers. These surveys can also identify which types of customers--leisure or business, Asian or outside the region--are using the airline most frequently.
Television is likely to offer the greatest advantage to NEWCO, but has the disadvantage of being expensive both in terms of design, production and media purchases. Because of this, a print campaign should be developed in tandem with the television campaign so that images used in the television campaign can be reinforced through print media, primarily through business and popular periodicals that have a wide readership of business professionals and wealthy individuals. This will help reduce some of the costs associated with the print campaign since images and copy from the television campaign can be used in the print campaign. This will also serve to reinforce the message that is delivered in the television campaign and should help establish a high level of brand awareness (Angrisani 14).

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