Marketing Mix of Malaysia Airlines and 7Ps (Updated 2024)

The Marketing mix of Malaysia Airlines analyses the 7Ps of Malaysia Airlines, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Malaysia Airlines. Malaysia Airlines is associated with the aviation industry as it deals in passenger aircraft. The Airline was founded in 1947 and is the flag carrier of its country of origin, Malaysia. It is an integral part of the Oneworld airline alliance.

Malaysia Airlines is a subsidiary of its parent company, Khazanah Nasional Berhad, Malaysia Aviation Group. Malaysia Airlines is known for its graciousness and Hospitality and has become one of the most frequent airlines in the world. It faces competition from the following:

• Air India
• Jet Airways
• United Airlines
• Virgin Atlantic
• Air France
• British Airways
• Qantas Airways
• Qatar Airways
• Etihad Airways
• Singapore Airlines

About Malaysia Airlines

• Type: Airline
• Industry: Aviation
• Founded: 1 May 1947
• Founder: Malayan Airways Limited
• Headquarters: Kuala Lumpur, Selangor, and Malaysia
• Area served: Worldwide
• Key people: Izham Ismail – CEO
• Number of employees: Over 20,000

Malaysia Airlines Product Strategy

By the end of May 2018, Malaysia Airlines operates via a fleet comprising eighty aircraft, out of which thirty-two are Airbus and forty-eight are Boeing. It handles nearly two hundred and fifty departures every day.

Malaysia Airlines has diversified to handle tour operator operations, other air transportation services, catering, aviation engineering, aircraft leasing, and aircraft ground handling. By 2013, it worked with the help of twenty-eight subsidiaries, twenty-five of which were wholly owned by the company.

The product mix of Malaysia Airlines in 2024 is as follows (Source).

1. Passenger Flights: Malaysia Airlines provides scheduled passenger flights to various domestic and international destinations. This includes economy, business, and first-class cabins with varying comfort levels and amenities.
2. Freight Services: Alongside passenger flights, they offer cargo services for transporting goods. This is a crucial aspect for businesses needing logistics solutions.
3. In-Flight Services: The Airline is known for its in-flight entertainment systems and services, including meals and in-flight shopping. The quality and range of these services often vary depending on the class of travel.
4. Loyalty Programs: Malaysia Airlines has a frequent flyer program, Enrich, which rewards regular passengers with points that can be redeemed for flights, upgrades, and other services.
5. Charter Services: The Airline may also provide charter flight services for large groups, corporations, or specific events.
6. Alliance and Partnerships: As an Oneworld alliance member, Malaysia Airlines offers passengers access to a global network of flights and services in cooperation with other member airlines.
7. Travel Packages: They often offer holiday packages, including flights, accommodation, and sometimes additional services like tours or car rentals.
8. Airport Services: These include lounge access, expedited check-in, and other exclusive services at airports, particularly beneficial for business class and first-class passengers.
9. Ancillary Services: Additional services such as travel insurance, extra baggage allowance, seat selection, and special meal requests are also available, usually for an additional fee.

Each product plays a role in Malaysia Airlines’ marketing strategy to provide comprehensive travel solutions and enhance customer experience.

Malaysia Airlines Pricing Strategy

At the end of the fiscal year 2017, Malaysia Airlines posted its profit and net income at MYR 18 million and MYR 60 million, respectively. It targets business people, corporate houses, individuals, and families from the middle and upper classes who prefer reliability and comfort in their travels. Malaysia Airlines is a trusted carrier serving global destinations with excellent products and impeccable services.

Malaysia Airlines’ pricing strategy is designed with a focus on airline competitiveness, value perception, and revenue optimization, reflecting the dynamic nature of the airline industry.

1. Dynamic Pricing: The Airline employs a dynamic pricing model, adjusting fares based on demand, seasonality, competition, and booking patterns. This approach allows them to remain competitive while maximizing revenue.
2. Segmented Pricing: Understanding different customer segments, Malaysia Airlines offers varied pricing for economy, business class, and first-class cabins. This segmentation caters to diverse customer needs, from budget-conscious travelers to those seeking luxury and comfort.
3. Promotional Offers and Discounts: Regular promotions, discounts, and special fares stimulate demand, particularly during off-peak seasons. These offers are also a tool to compete with other full-service and low-cost carriers.
4. Loyalty Program Incentives: The pricing strategy is closely linked with their Enrich loyalty program, offering rewards that encourage repeat business. Frequent flyers can access exclusive fares, upgrades, and other value-added services.
5. Ancillary Revenue: A significant aspect of their pricing strategy includes ancillary services such as extra baggage, seat selection, in-flight meals, and travel insurance. This approach not only enhances customer experience but also provides additional revenue streams.

Malaysia Airlines’ pricing strategy is a blend of flexibility and innovation to balance profitability with airline satisfaction and loyalty in a highly- competitive airline market.

Malaysia Airlines Place Strategy

Malaysia Airlines handles its operations to sixty destinations spread to service flights to over thirty countries across North America, Europe, the Middle East, Australasia, Asia, and Oneworld hubs at Tokyo Narita, Sydney, Los Angeles, London Heathrow, and Hong Kong. It handles flights in both domestic and international circuits with its subsidiaries and alliances.

Malaysia Airlines operates flights from its primary hub at Kuala Lumpur International Airport and secondary hubs at Kuching and Kota Kinabalu. The registered office and headquarters of Malaysia Airlines is at Kuala Lumpur International Airport in Sepang, Malaysia. Malaysia Airlines is the owner of two subsidiary airlines, MASwings and Firefly. The first focuses on inter-Borneo flights, and the second handles scheduled flights from home base at Subang International Airport and Penang International Airport.

Malaysia Airlines has entered into Codeshare agreements with American Airlines, Korean Air, Qatar Airways, Myanmar Airways International, Jet Airways, Japan Airlines, Etihad Airways, China Airlines, Cathay Pacific, Bangkok Airways, and Air Mauritius. The airlines have opened The Golden Lounge at Penang, Melbourne, London, Kuching, Kota Kinabalu, and Kuala Lumpur International Airport.

Staff and employees are an integral part of any organization, and the airlines have recruited people and given them special training to develop aviation professionals before they start working. In 1994, Malaysia Airlines began the Malaysia Airlines Academy to train its employees and develop the skills of aviation professionals.

Airlines’ tickets can easily be purchased via its counters at airports, its official website, other e-commerce portals, and travel agents.

Malaysia Airlines’ place strategy is as follows:

1. Global Route Network: The Airline operates an extensive network of routes, connecting major cities worldwide, focusing strongly on Asia-Pacific and the Middle East, serving as a bridge between East and West.
2. Strategic Hubs: Kuala Lumpur International Airport is its primary hub, leveraging Malaysia’s geographical location to optimize flight connections and transit times for Southeast Asian passengers.
3. Codesharing and Alliances: Malaysia Airlines extends its reach through codesharing agreements and membership in the Oneworld alliance, allowing passengers to book flights to a broader range of destinations under its flight code.
4. Online and Mobile Presence: A robust online platform and mobile app provide easy access to booking, check-in, flight status, and customer service, catering to the modern traveler’s preference for digital solutions.
5. Travel Agency and Partner Networks: The Airline maintains a strong presence in travel agencies and partners with tour operators globally, ensuring accessibility to its flights and packages in various markets and customer segments.

Malaysia Airlines Promotion Strategy

Malaysia Airlines has developed a tagline: MH is Malaysian Hospitality, as it believes in serving to the best of its ability. It is one of the most recognized airlines and has a strong brand recall because of its excellent marketing strategy and advertisement.

The ad campaigns are shown via newspapers, travel magazines, billboards, and social media platforms like the official website, Instagram, Facebook page, and Twitter account.

In 1987, a frequent flyer program, Esteemed Traveller, was launched by Malaysia Airlines, which was replaced later on. The Airline launched Enrich, its current frequent flyer program, to maintain passenger loyalty in 2006. It is connected with several suppliers, hotels, credit card issuers, banks, and airlines. Members can accrue miles, which can be redeemed later on.

Malaysia Airlines has received several awards and recognition. It was awarded The World’s 5-Star Airline in 2013, 2012, and 2009 and Asia’s Leading Airline in 2013, 2011, and 2010. From 2001 to 2012, IWorld received the World’s Best CAsia’s Rew Award eight times.

Malaysia Airlines has entered into several sponsorship deals. World’s year 2016, it signed a three-year contract with Liverpool FC, a Premier League football club, and has become an Official Global Airline Partner. The airlines will broadcast an ad video of six minutes during the club’s home games played at Anfield till the 2018-19 season.

Malaysia Airlines’ complete marketing mix promotion strategy is as follows:

1. Club’s Marketing Campaigns: The Airline utilizes traditional and digital marketing channels, including social media, online advertising, and email marketing, to reach a broad audience and promote its services and special offers.
2. Partnership and Sponsorships: By partnering with tourism boards, hotels, and other airlines, along with sponsoring events, they enhance brand visibility and appeal to a broader range of customers.
3. Loyalty Program Engagement: Leveraging its Enrich loyalty program, Malaysia Airlines encourages repeat business and word-of-mouth promotion through exclusive deals, points-earning opportunities, and personalized marketing.

Some Recent Video ads and Print ads of Malaysia Airlines are:

Malaysia Airlines People Strategy

The “People” component of the Service Marketing Mix for Malaysia Airlines would focus on the employees and the service they provide, which is crucial in the airline industry due to its direct impact on customer satisfaction and loyalty. Here are some key points regarding the “People” aspect of Malaysia Airlines:

1. Highly Trained Staff: Malaysia Airlines invests in comprehensive training programs for its staff, including pilots, cabin crew, and ground staff, ensuring they are well equipped to provide excellent service.
2. Customer Service Orientation: Employees are trained to be customer-centric, focusing on meeting and exceeding passenger expectations with a friendly and helpful attitude.
3. Multilingual Crew: Recognizing the diverse backgrounds of its international passengers, Malaysia Airlines ensures that its cabin crew can communicate in multiple languages, including English, Malay, and other languages relevant to its major routes.
4. Uniforms Reflecting Malaysian Culture: The staff uniforms are designed to reflect Malaysian culture, enhancing the brand identity and providing passengers with a sense of the Airline’s heritage.
5. Employee Engagement and Satisfaction: Malaysia Airlines emphasizes employee satisfaction and engagement, understanding that happy employees are more likely to provide better service. This includes initiatives for career development and recognition programs.
6. Safety and Service Training: Safety is a top priority, with rigorous training programs on safety procedures and emergency response for all crew members, alongside customer service training.
7. Innovative Service Initiatives: Malaysia Airlines introduces innovative service initiatives, such as the “Chef-on-Call” service for Business class and First Class passengers, highlighting the Airline’s commitment to a superior service experience.
8. Dedicated Team for Special Needs: The Airline has a dedicated team to assist passengers with special needs, ensuring they receive the necessary support and accommodations for a comfortable journey.
9. Feedback and Improvement: Malaysia Airlines actively seeks feedback from passengers to continually improve service delivery, demonstrating a commitment to refining and enhancing the passenger experience based on customer input.
10. Cultural Sensitivity Training: Understanding the importance of cultural sensitivity in the global airline industry, staff are trained to respect and accommodate passengers’ cultural preferences and practices worldwide.

Malaysia Airlines Process Strategy

The “Process” component of the Service Marketing Mix for Malaysia Airlines encompasses the procedures, mechanisms, and flow of activities consumed by services. This is critical in ensuring efficient service delivery, meeting customer expectations, and enhancing customer experience. Here are some key points regarding the “Process” aspect of Malaysia Airlines:

1. Online Booking System: Malaysia Airlines offers a user-friendly online booking system, enabling customers to easily search for flights, compare prices, and book tickets. This system also allows for the management of bookings, such as seat selection, meal preferences, and special requests.
2. Check-in Procedures: The Airline provides multiple check-in options, including online check-in, mobile check-in, and self-service kiosks at airports, aimed at reducing wait times and enhancing passenger convenience.
3. Baggage Handling System: Malaysia Airlines employs an efficient baggage handling system to ensure luggage is processed quickly and accurately, minimizing the chances of loss or delay.
4. Flight Operations: The Airline follows rigorous procedures for flight operations to ensure safety and punctuality. This includes everything from flight planning and crew scheduling to real-time weather monitoring and air traffic control coordination.
5. In-Flight Services: Malaysia Airlines has standardized processes for in-flight services, including meals, entertainment, and assistance, ensuring a consistent and high-quality experience for passengers across all classes.
6. Customer Service and Support: The Airline has established processes for handling customer inquiries, complaints, and feedback, including a dedicated customer service hotline, email support, and social media channels.
7. Safety and Security Measures: Stringent safety and security measures are in place, following international aviation standards. This includes security screenings, in-flight safety procedures, and regular maintenance checks of aircraft.
8. Loyalty Program Management: The Enrich loyalty program is managed through a systematic process that rewards frequent flyers with points, tier upgrades, and other benefits, encouraging customer loyalty and repeat business.
9. Health and Hygiene Protocols: In response to health concerns, Malaysia Airlines has implemented enhanced cleaning procedures, health screenings, and in-flight protocols to ensure passenger safety and confidence.
10. Feedback Loop: There is a structured process for collecting and analyzing customer feedback to identify areas of improvement and implement changes in service delivery.
11. Employee Training and Development: Continuous training and development programs for employees ensure that service delivery processes are performed efficiently and evolve with industry standards and customer expectations.
12. Crisis Management and Communication: The airline has crisis management and communication processes that ensure quick and effective responses to emergencies or disruptions affecting service.

Malaysia Airlines Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered, alongside any tangible elements that facilitate the service or help consumers evaluate it before purchasing it. For Malaysia Airlines, physical evidence shapes perceptions, enhances customer experience, and reinforces the brand’s image. Here are key points regarding the “Physical Evidence” aspect of Malaysia Airlines:

1. Branding Elements: The distinctive logo and traditional wau bulan (moon kite) design, along with the company’s color scheme of red and blue, are consistently applied across various touchpoints, including aircraft livery, staff uniforms, and marketing materials, helping to reinforce brand identity.
2. Aircraft Interiors: The design and comfort of the aircraft interiors, including seating, lighting, and cleanliness, offer direct physical evidence of the Airline’s quality and attention to passenger comfort. In particular, business and first-class sections showcase luxury and comfort with lie-flat seats and high-quality amenities.
3. Airport Lounges: Malaysia Airlines operates exclusive lounges for its passengers, particularly at its Kuala Lumpur International Airport hub. These lounges offer services and amenities, such as comfortable seating, food and beverage options, showers, and business facilities, reflecting the Airline’s commitment to passenger comfort and convenience.
4. Check-In Counters and Facilities: The appearance and efficiency of check-in counters and related airport facilities, including signage, provide passengers with their initial in-person experience of the Airline, setting expectations for the journey ahead.
5. In-Flight Amenities and Meals: The quality of in-flight amenities, including meals, entertainment options, and comfort items like blankets and headphones, serve as tangible evidence of the Airline’s service standards and attention to passenger needs.
6. Website and Mobile App: The design, usability, and functionality of the Airline’s website and mobile app are crucial forms of physical evidence influencing customer perceptions and decisions. Easy navigation, informative content, and smooth booking processes are essential.
7. Boarding Passes and Travel Documents: The design and quality of boarding passes, luggage tags, and other travel documents contribute to the overall brand experience and can influence passenger perceptions of the Airline.
8. Safety and Hygiene Measures: Visible safety and hygiene measures, especially in response to health concerns, such as aircraft cleanliness and availability of hand sanitizers, reassure passengers and are a critical form of physical evidence.
9. Marketing and Promotional Materials: High-quality brochures, advertisements, and promotional materials that accurately reflect the services and experiences offered by Malaysia Airlines help to build expectations and trust.
10. Customer Testimonials and Reviews: While not physical in the traditional sense, positive reviews and testimonials from satisfied customers serve as evidence of service quality and can significantly influence potential passengers’ perceptions and decisions.
11. Uniforms of Staff: The uniforms worn by flight attendants and ground staff, which blend traditional Malaysian elements with modern design, serve as a branding tool and enhance the Airline’s image of professionalism and quality service.
12. Fleet Appearance: The external appearance of the aircraft fleet, including cleanliness and maintenance, reflects the Airline’s standards for quality and reliability.

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