The Malaysian Airlines Strategic Communications - Case Study Example

THE MALAYSIAN AIRLINES STRATEGIC COMMUNICATIONS PLAN Executive Summary The Malaysian Airlines is dedicated to restoring customer and investor confidence by reclaiming its financial position in the airline business. Last year presented a score of challenges to the enterprise that threatened its reputation and image in the industry. In response, the company is engaging methods to develop a working communications strategy that would urgently address the situation. After a series of investigations into the macabre plane crashes, the airline’s commitment to putting quality into all its systems. There will be radical surgery in the company that will include restructuring and hiring of a new team that will champion better procurement services (Kelly, 2015). A systematic upgrade of the fleet will ensure to retire old and inefficient machines in the system. The all-inclusive plan intends to renew the business standpoint of the company by implementing state-of-the-art tactics that will yield spontaneous benefits to the threatened business. Safety and security have become a primary concern for the business, after the grisly accidents that occurred in last business year. The ultimate goal of the new system will help in improving relations between the airline, its clients, and its shareholder base to steer a clear path to former glory in the enterprise. Situation Analysis Currently, the company is involved in the commercial airline business both locally and in several other destinations across the world. The company’s largest customer base is concentrated on international carriers, which constitute up to 83 percent of its revenue. The enterprise is famous for offering affordable flight tickets to the standard class that contributes 66 percent of the annual income (Quirke, 2012). The attractive travel charges have been the leading motivation for the increasing number of customer loyalty to the enterprise that is affected by the two unexpected events that culminated the progress. The business controls about 47 percent of the market share, down from 49 percent in 2013. The current team is dedicated to redressing the initial market space beyond previous digits. The services offered by the multinational will always remain beyond the customer’s expectation so that they can get the value for their money as they enjoy the incomparable quality of service. The rejuvenated team will remain undeterred by the dark past, and focus on ways that will add value to the services currently offered. A rigorous process engaging procurement will be established to ensure that only the best components and machinery are used. An open tendering process will be used during procurement processes, and only the most reliable suppliers will be awarded tenders. Other sourcing options will be considered to eliminate the possibility of purchasing substandard materials in the company’s assets. More technologically advanced vehicles shall be introduced in the fleet to retire some of the aeroplanes in the fleet, as well as increasing flight destinations in Europe and America (Phillips, 2014). SWOT Analysis Strength The company has the most significant advantage in the present market space: customer loyalty. The concept has been sustained through continuous improvement of service delivery by the most professional team in the market (Coombs, 2011). The enterprise has been known for purchasing the most reliable aeroplanes in The Malaysian business space. The other advantage is timely service delivery, laced with professionalism both on board and at the airport. Very few complaints relating to passenger luggage issues have been handled in the past, proving customer confidence in the venture. The proofs by figures indicate that despite losing two aeroplanes in 2014, the company’s market share still stands at 47 percent. The unique selling proposition is concealed in the pool of professionals that the company has been known for. Weaknesses The major events that reduced customer confidence in the business were the unfortunate plane crashes that occurred in 2014 (Gillis, 2011). However, this has slightly reduced the preference for the airline to other competitors in the market, a situation that is expected to normalize after the current restructuring of the system. In future, the new team will embrace the efficacy of technology in all its operations to avert similar situations in the previous years. Opportunities The future of the business remains bright and intact as it continues to engage with its customers and shareholders in ways to increase efficiency in service delivery. The strongpoint remains cemented on the current high investor confidence that has slowly increased the venture’s stock market share value. The change in technology will provide a more potent infrastructure that will increase the market value of the enterprise, beyond previous levels. The current changes in the government policy will instil professionalism and stringent safety measures in the industry that will boost the business (Paul, 2011). Threats The most impending obstacle the venture presently faces is the bureaucracy that has crippled efficient operations and service delivery in the system (Mobley, 2005). There has been widespread restructuring in the industry, and, as a result, more professionals have been outsourced from other countries to reinforce service delivery in the profession. PEST Analysis Political factors The government has been instrumental in formulating policies that have ensured international safety standards have been adhered to (Thaeler, 2009). The government has also facilitated competence and professionalism in the industry by formulating guidelines for practice in the field. Lastly, the government has formed a professional body that will evaluate competence and integrity of professionals, and then approve their registration. Economic factors The business has been on a gradual recovery process after the global financial meltdown. Currently, the economy has managed to get back to its feet; hence more people can use the flight services (Kelly, 2015). Social factors Due to the current economic gains in the country, the living standards have gradually improved, and that’s a good sign for the venture. With the present population decrease due to changing lifestyles and globalization, the enterprise will be expected to concentrate its resources towards giving the best quality of service to the current customer base (Vos, 2005). More people have preferred using flights contrary to the conventional road method, because of the economic improvements. Technological factors Technological aspect plays a critical role in the flight industry both locally and abroad. Manufacturers have developed more sophisticated air security systems that are capable of detecting mishaps in the plane, hence averting crashes. Communications Strategy The business seeks to use channels that will facilitate productivity and customer satisfaction in all its system. Target Audience The plan intends to reach all its customer and stakeholder base, to boost investor confidence. The Customer The most important entity in the business is the customer. The communications aim at ensuring the customer that despite the previous incidents, their service remains a top priority of the venture (Holtz, 2005). Higher standards will be observed at all steps in customer management to give them the value for their money. The customer includes domestic and international clients who have chosen to use the Malaysian Airlines services. The company will continue to uphold transparency and non-discriminatory operations that will cater for the needs of all customers from all the spheres of life. The media has been fundamental in disseminating information regarding the activities of the enterprise, least to mention, the coverage of the tragic plane crashes (Phillips, 2014). The business is committed to using both local and international media to reach all the customers around the world, informing them of the business’s renewed reliability and safety standards. Online advertising will be targeted as well; social media will be the most preferred online advertising avenue. The Investors and Shareholders The plan seeks to bolster investor confidence in the venture, by implementing fiscal policies in its systems that will increase the share value in the stock market. The company has high expectations that the new Airbuses introduced in its fleet will propel new financial prospects in the new destinations currently in the list of international flights (Gillis, 2011). Communications Objectives (SMART) Aim of the Plan The plan aims at increasing business growth in both local and international market. An effective communications media used by the program will significantly boost trade and growth expected in 2015. SMART Objectives Specific The primary objective of the communications strategy is to elevate business prospects in the industry to be a one-stop shop for all the client’s needs. It is possible by adopting latest technology that will fasten service delivery (Waller, 2015). Latest airplane safety and inspection systems will be installed to ensure all the Airbuses are in perfect working condition before takeoff. Measurable The current technology will reduce the occurrence of an accident by over 95 percent, by evaluating the performance of every component in the plane before, during and after the flight. The high precision devices will provide hourly feeds about engine performance, onboard computer performance and rectify any problem before it causes disaster (Haddow, 2008). Agreed/Achievable The set objectives have a high probability of success, given the capital investment put in them, and the tests that they have been subjected to. The only obstacle might arise from the human side, which is currently under thorough scrutiny to minimize room for errors. Responsible/Realistic The new C.E.O. has a wealth of experience in the business that will enable change in the system in the stipulated timelines. His experienced team will channel new ideas that will leverage on the current competitive trade dynamics. Time Limited/Target Date The objective shall be achieved in the next six months, by October, 31st. Communications Message ‘We all love flights, we all have wishes and secrets in the skies, let’s explore how we can make every travel a real adventure and memorable encounter with our inner selves – travel The Malaysia, go globally. The Malaysian Airlines’ Communications Media Television: international TV channels will be used to reach both local and global customers. Internet: Online marketing will be harnessed in the social media to target the younger audience. Magazines: Business magazines will be used to reach future investors and shareholders Newspapers: Special newsprints will be reserved for the trade’s ads to notify the public about the new attractive travel rates and other packages. Radio: Short audio ads will be targeted to inform the customers about new packages and the services offered by the venture. Message Schedule Task Message Apr May Jun Jul Aug Sept Oct Prepare Budget Television Public relations and sales promotion Internet Direct marketing Magazines Sales promotion Newspapers Direct marketing Radio Advertising Performance Evaluation Summary At the end of the campaign, a performance evaluation analysis shall be conducted to point the achievements. The first indicator will be a yearly comparison of sales with the previous year; the profitability will be measured by the net current value of the campaigns. The outcome will level the effectiveness of the communications media selected, and the customer response to the new business methods implemented over the six months (Cambie, 2009). Customer satisfaction shall be examined from the various feedback collection tools in the system. The company’s website traffic shall also be analysed to monitored online response to the business’ communications strategy. The stock market trends shall be interpreted with respect to last year’s performance, and the results will help understand the level of investor confidence in the company. The media response shall be analysed based on the depth and breadth of coverage. The number of times the key messages shall be conveyed on the media platform will be analysed to evaluate the effectiveness of the method. Ultimately, the company desires to achieve increased sales and profitability that will enable financial sustainability of the trade (Holts, 2005). The Malaysian Airlines Press Release By The Managing Director April 2, 2015-04-03 The Malaysian airline announced today that it will be introducing new flights in its fleet to bolster its current market position. The board of directors will be expected to meet with the board of shareholders to discuss present and business prospects of the venture. The team will also evaluate the current market performance of the business to shape it towards emerging as a market leader by diversifying its operations. The Malaysian Airlines expect the convention to bolster investor assurance and enlarge its customer base, both locally and abroad. The introduction of new flight destinations will be fundamental to achieving the set objectives, and will help in exploiting new markets for its services. In addition, The Malaysian Airlines will cast more investment in the business class flights to increase current revenue from 43 percent to 50 percent in the next six months. The airline will recruit more competent and experienced staff to improve customer service and meet current market standards. The new government policies will permit The Malaysian Airlines to use the best technologies in the industry to help reduce failure of machine parts and eventual loss of revenue to the company. In response to this, the company embarked on a rigorous restructuring process that will enable it improves performance in its current system. The company’s website has been redesigned to incorporate the current systems that have been implemented. The airline wants to assure customers that their information remains private, and they can continue relying on the online booking system of the company. Again, the carrier wishes to ensure the clients that the current restructuring will not affect the services provided, so they should not postpone their bookings. Most importantly, The Malaysian Airlines would wish to express the deepest condolences to the bereaved families affected by the two incidences. The company is working overtime to ensure only the most mechanically sound planes are allowed in the skies, and the most competent and experienced crew are allowed on board. After years of success, the company remains undeterred by the previous accidents, which put its reputation on the line. This year, the airline will expand its global infrastructure by reaching different ethnic diversities that will be targeted in the new flight routes. The objective of multicultural promotion and creating a strong positive image remains fundamental to the future of the company. The national carrier is committed to continuing with the excellent relationship with its investors, stakeholders, press, and all its customers. The fully reenergized staff and a fresh new management team are dedicated to making this year’s business events one that goes down in history. Lastly, the company will be adopting the new Goods and Service Tax (GST) on relevant services and goods supplied, to enable its clients claim GST with input tax credits, where qualified. More information will be expected to be released following next stakeholder meeting that will be held on September 3, 2015. Bibliography Cambie, S. and Ooi, Y.-M. 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