Portfolio & Case Study
A large number of commercial department of airline companies required to find out program that can generate revenue in low season in terms of maintain the cash flow to survive until high season.
In terms of increase cash flow, I was given the task to create a program that help company increase their cash flow in low season.
After brainstorming, we decide to plan the marketing program (Flash Sale) that aims to increase cash flow through cash in advance of the tickets sold. The idea behind this program is to sell Seat Rest Capacity for a certain amount as a gimmick. In simple terms, we are looking for the Average Seat Load Factor then calculate how many seats that didn’t sell (Seat Wasted Capacity.red) in the past of low season period and selling the certain amount of ticket based on average remaining wasted seats that we assume (based on time series of data) didn’t sell in the low season period July-November 2020. We created 2 times program: 1 Pilot project (Dec 2019) & 1 Main Project (Feb 2020). Learn from pilot project in 2019, then I ask my team to look at the insight and evaluate which part that we can improve in terms of media channel, pricing, target market, and trend. We redesign our marketing plan based on data we got in the past, such as 10 location that really impactful in terms of digital ads, then analyze copywriting and our content, did A/B testing to find out AHA Moment that can increase CTR.
This program achieve ROI 190x comparing with the same program in the past, we increase CTR from 0,9% to 8,15% when we use social media marketing with avoidance of loss strategy and eliminate the city that is not really impactful by use digital marketing approach.
In Q1 2020, companies are required to improve revenue performance. There are 3 revenue streams from an airline: revenue from passenger tickets, cargo, and ancillary. Ancillary income is the smallest income in the past 2 years.
I was given a task to increase revenue from the Ancillary (additional income outside the passenger ticket), which by nature does not burden the company’s cash flow. My team were given 2 weeks to develop the project until live with pilot project locations: Jakarta and Surakarta airports. Our goal is to find / develop ideas with zero cost marketing concept and go to Market Strategy that can provide revenue for companies from an ancillary side.
After brainstorming, we agreed to develop a design of our boarding pass by rearranging the layout to provide space for advertisements on our boarding passes. We collaborated with one of the food merchants at the airport. The idea of selecting a food merchant originated from a problem we found when consumers who were leaving by plane did not have time to eat because they were in a hurry or were afraid of being left behind by the plane, especially on flights in the morning. We also personalize content by mentioning the name of the consumer, and designing algorithms (such as customizing vouchers based on age, gender, departure location and time of departure) for developing boarding passes based on the merchant’s target market. In addition, we also redesigned the boarding pass by adding a quote about the trip. This design will be printed automatically when our cooperation has ended with a merchant.
We get an Average Conversion Rate of 15% per month from the total of all passengers departing from Jakarta. We also get positive responses on our social media, especially Instagram through inspiring quotes that we display on our boarding passes. Based on the results, we have attracted the attention of merchants and interested to advertising on our boarding passes, including one of the leading hotel chains in Indonesia.
In low season periods, airlines faced a decrease in passengers which causes a decrease in revenue for some routes. On the other hand, the booking rate and CR of the recently revamped NAM Air website was very low. Based on the incoming data, it shows that in some areas percentage of people who bought ticket return was 80% smaller than those who purchased one-way tickets . There are even some areas that are far below this average.
Increase the repurchase rate for some regions during the low-season period and introduce and increase the conversion rate on the NAM Air website
I then analyzed the area based on SLF (Seat Load Factor) during February-April (low season) by looking at data from the past few years and comparing it with the BLF (Booking Load Factor) level. Then do a trend analysis related to consumer behavior in buying tickets in the target area. On the other hand, we also look at the growth in the market size that exists in these areas before deciding which area this campaign will be implemented in. We then designed the BTL strategy by distributing voucher discount to consumers who fly on selected routes.
In the end of program, the percentage of customers who repurchased in the target area increase 25% compared to the low season period of the previous year.
Because of the high cost of installing Wi-Fi on-board, we are looking for other alternatives related to how we provide entertainment to passengers on board. Adding a TV to each seat cannot apply to the concept of medium-service airline with an average flight of under 2 hours.
Looking for an alternative to entertainment onboard for passengers but it doesn’t cost a lot of money and can be applied for the flight time under 2 hours.
We then design activities on board that can entertain passengers with the concept of providing quizzes with various attractive prizes for consumers who successfully answer questions quickly and accurately. This marketing activity is carried out on several routes that have a travel time of 1 hour and above, this is based on safety and security considerations and aviation authority regulations.
Based on our survey Q4 2019, we find out that NAM Quiz successfully increases passenger satisfaction in terms of Entertainment on board from 3,25/5 to 4/5.
– When we designing a marketing plan, there are 2 approaches: Top down Approach & Bottom Up Approach, in this case I am adjusting the budgeting using top down based on the consideration of the company’s condition by comparing the output by considering costs, average flight time, and NAM Air audience profile.
– Always seek or create alternative options if it conflicts with company strategy or local authority regulations.
Situation: Pontianak as one of the areas that NAM Air prioritizes to be strengthened in 2020, I was assigned to create an activity that could increase NAM Air’s aid brand awareness and visibility in Cap Go Meh activity in the city of Singkawang. Cap Go Meh is an annual activity that attracts tourists from West Kalimantan to International, management think that it will be effective if our company create an activity during Cap Go Meh. Task: Plan and carry out BTL activities with briefs: Minimal marketing costs but effective and without disrupting the course of events and government regulations & local committees. Action: The team and I then did a brainstorm by involving the local team in Pontianak to know more clearly about the conditions in the field and what made it possible to do it effectively based on the given task. The idea then comes based on a problem usually occour in the field. We found out that people often enjoy Cap Go Meh activities but felt hot because the weather. I then thought of designing marketing promotion tools have to solve the problem: by using a fan. In the company perspective I add an information about NAM Air routes from Pontianak to various regions. The Aims is to increase the knowledge about our route in Pontianak. Result: This activity then received a positive response from the public which was reflected in positive comment on Instagram Story that posts by netizen and got an appreciation from the board of directors of NAM Air. Lesson Learned: – In designing marketing activities, involve local teams where possible to gain insights and avoid biased in making decision from teams at headquarters. – Design an activity that is relevant based on the problems or conditions that occur in that place