Jetstar Pacific Airlines
Jetstar Pacific Airlines
BTEC HND in Business
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TABLE OF CONTENTS
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INTRODUCTION
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BUSINESS STRATEGY
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trends will be driven by the low-cost airlines, as they continue to increase their passenger loads. Low cost
airline have revitalized many regional airports, leading to competition between airports and the need for
airports to be competitive in their fees. This presents a challenge to airports to find new sources of revenue,
with the clear understanding that they cannot continue to operate with a more of the same attitude. Airports
recognize that they must adopt new approaches in order to actively support this growth of air travel and be
competitive. Those airports that successfully rise to the challenge will become airports of the future and will
exhibit three key characteristics that distinguish the successful from all others:
-p Lower-cost operating costs
-p Faster and more efficient passenger flows
-p New revenue streams, driven by increased retail and services opportunities
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Pacific accounted for 40% market share for passenger transportation on their main routes between Ho
Chi Minh City and Hanoi and captured 5% of total domestic air market. Airline Jetstar Pacific is Vietnam's
only unused tickets, provides 100% electronic ticketing and payment by credit card online through their
website and reservation services over the phone.
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too high. It will affect the buying behavior of customers and the price which is set by Jetstar a lot. Those
factors of the political and legal terms make the stabilities for Jetstar to open new air-line from Hanoi to
Kunmin in China and somehow encourage the current business and the developments of the company in
the future.
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GDP of Vietnam from 2005 to 2010 (ource: HSBC)
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All data above show that Vietnam is in a developing economy and being a potential market where
consumers are always ready to travel abroad and book flight ticket with inexpensive price and good
quality of flight. These things will provide them values which can bring prosperities to Jetstar¶s business
in a long period.
£.p ocio - cultural factors
Vietnam is a densely populated country with over 86 million people - the 15th country in
population level, which is a potential market for Jetstar to invest new air-line in Vietnam, especially
the capital - Hanoi. Besides, Vietnam population has been increasing gradually with the population
growth rate was estimated by 0.977 in 2009 (CIA, 2009). Additionally, the population distribution is
continually moving from countryside to cities. In 2005 and 2006, the volume of urban citizens was
22.13 million (occupying 26.8% the total Vietnam population), and 22.82 millions (occupying 27.1%
the total Vietnam population) respectively. In 2008, the urban population occupied 28% of total
population. It means that it is more and more people leaving the countryside to cities to live and cities
are going to be more crowded.
Instructors: Nguyen Thi Thu Trang
Trinh Thi Thu Giang
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In fact, as the research result recorded, the travel tour or business tour from Hanoi to Kunmin in
China is very attractive to customers in the North of Vietnam. They often travel by train or bus in
order to save money although the duration of the journey is not short and the way of transporting is so
complicated. For example, customers can go to Lao Cai Province by train or bus, then they will
continue the journey to Kunmin by train and bus or take a flight of Chinese Airline. Besides, the
Hanoi ± Kunmin air-line of Vietnam Airline is also a choice for them to save time. However, the
price is not cheap. Accordingly, this is an advantage for Jetstar if the company competes with other
competitors and commits to supply customers a cheap flight with good quality.p
Furthermore, the lifestyle of Vietnamese is changing towards to foreign style, especially the young
generation. They are now preferring to travel abroad, especially cheap flight. This also affects the
buying behavior of the consumers. That is the reason why Jetstar should use the cheap-price
advantage of the company to attract them.
Therefore, it seems to be said that Vietnam is a potential market for Jetstar to expand the business.
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technologies to catch up with the developments of Vietnamese and Vietnamese new demands will
require the company much spending.
MARKETING PLAN
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1.p Product
We plan to launch new Jetstar air-line from Hanoi to Kunmin in China in 2012. This airline is sold
mainly for two types of customers in the North of Vietnam:
p Customers who book ticket online in http://www.jetstar.com/vn/en/index.aspx or in Jetstar ticket
agency.
p Customers who book a group of ticket such as tour agents and so on.
In order to set the suitable time for the flight, we made references to Vietnam Airline and the difference
between time zone of Hanoi and Kunmin. In fact, the time zone in Hanoi does not differ much from the
time zone in Kunmin with just only one hour. Besides, after analyzing the customers¶ behavior in the North
of Vietnam, we recognize that most of customers go to Kunmin for travel and a small number of them go
for business and they often travel by train or bus in order to save money although the duration of the
journey is not short and the way of transporting is so complicated. Accordingly, it will be beneficial for
customers if Jetstar can save them more time.
Compared to the most favorite time of customers travelling a long-distance journey by train is between
00:00am and 9:00am (Figure 1); we decided to set the time for flight is from 7:00am to 8:20am. It means
that customers will arrive to Kunmin in 9:20am followed the time zone there.
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Indeed, it just takes customers around one hour to fly to Kunmin from Hanoi. Customers will come to
the airport at about 5:00am and make a check-in routine there from 5:00am to 7:00am. We suggest Jetstar
to set about three flights per week in Monday, Wednesday and Friday. With this time of flights, we ensure
that customers can minimize wasted time for transporting while they absolutely can fly with Jetstar to
Kunmin in 9:20am then spend about one more hour to go to the hotel and take a rest. In the rest of the day
and days after, it is time for travelling or doing business.
Although air-line from Hanoi to is not a new product in Vietnam, it is still not popular because only
Vietnam Airline exploits it. Jetstar should commit to supple customers cheapest price as the company¶s
strategy and improve the quality of flights, to compete with its major competitors mainly based on price
differentiation.
In term of plane, Jetstar can use Airbus A320 for this air-line because of the lower-fares than Boeing 737
and the economics (Airbus A320 can transport 180 customers while Boeing 737¶s transportation is lower
with 167 people).
2.p Price
3.p Place
Instructors: Nguyen Thi Thu Trang
Trinh Thi Thu Giang
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4.p Promotion
5.p People
For any service, the provision of people is a very important ingredient. Especially for Jetstar, who
provides aviation service, recruiting the right staff and training them appropriately in the delivery of their
service is essential if Jetstar wants to satisfy the customers. People do not mean solely the fight attendants;
there are pilots, officers, guards and a lot of positions to be concerned. Consumers make judgments and
deliver perceptions of the service based on the employees they interact with. That is the reason why
Jetstar¶s staff should have the adequate interpersonal skills, attitude, and service knowledge to provide the
service that consumers are paying for. Firstly, it is very important for Jetstar to have good pilots. Even
though pilots do not interact much with people, they are responsible for passenger¶s lives, moreover, the
way they control the airplane affects customers directly on how they feel about the safety level of the flight.
That is one of the factors which customers consider the most when choosing airlines. Secondly, the ones
need to be trained very well are flight attendants. They are who interact directly with customers and leave a
lot of impression in customers¶ mind. The way they dress, communicate, serve customers as well as deal
with problems on board must be perfect in order to satisfy the customers. For Jetstar, besides recruiting the
flight attendants from flight academy, they have to provide them with an extra training course to improve
their knowledge about the company, their job, emergency handling as well as their interpersonal skills. Last
but not least, it is the ground staff, they do not flying with passengers, but also play a very important roles
in creating the image of the airline. Overall, for an airline like Jetstar, they need to have a standardized
system and regulation about how the staff behave in order to retain a good image of the whole company.
6.p Processes
7.p Physical evidence
Physical evidence refers to the Jetstar Company¶s environment in which the service is assembled and in
which the airline company and customer interact, combined with tangible commodities that facilitate
performance or communication of the service. The physical evidence of service includes all the tangible
representations of service such as brochures, letterhead, reports, e-tickets, internet presence (Jetstar
Pacific¶s website) and equipment in the airplanes. For example, in the Jetstar Pacific, the interior
decorations, furnishing, lighting, viewing-door, and safety life-jackets as well as the appearance and
attitudes of its employees will influence customer perceptions of the service quality and experiences.
Because of the simultaneous production and consumption of most services, the physical facility i.e. its
Instructors: Nguyen Thi Thu Trang
Trinh Thi Thu Giang
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CONCLUSION
REFERENCES