National Air Services Group: Service Marketing

Introduction

NAS Airlines is a subsidiary of Saudi National Airline Services, located in Jeddah. It manages domestic and global programmed flights to more than 90 nations in the Middle East, Asia, America, and Africa. Local and global charter trips are frequently operated in two seasons, Ramadan and Haji. The major working base of this airline is located at a global airport by the name Jeddah-King Abdul-Aziz. Other working bases include Riyadh-King Khalid and Dammam-King Fahd landing fields. NAS Airlines is an affiliate of the Arab Air Transporters Association (Shaw, 2007, p. 324).

Historical Background of NAS

National Air Services Group also referred to as NAS was founded in 1999. Its establishment came when Net Jets-Middle East Program was initiated in collaboration with Net Jets-USA. In the year 2001, Air Craft Management Services was established to offer tailored management solutions for aircraft firms. In the same year, NAS also launched Operation Support Project Management services. The Aircraft Management Services has signed contracts with over 66 states, corporate, and aircraft owners. NAS began its commercial operations in 2007 by launching Nasair the smart choice and the first economic airline.

By the beginning of 2010 NAS commercial fleets reached 13 aircraft and this number is expected to reach 19 aircraft by 2012 (National Airline Services, 2011, p.2).

Nasair is one of the leading budget airlines in Saudi Arabia which operates both locally and internationally. This particular company was first launched in the year 2007 and by the year 2009, it was serving more than 20 destinations and offering 300 flights per week. In the year 2008, Nasair introduced brand new Airbus A320 and Embraer E190 which gave it a competitive high ground in the Saudi Arabian airline industry. NASJET is the brand new NAS subsidiary, incorporating the unique NetJets-Middle East program and Operation Support Project Management services (National Airline Services, 2011, p.2).

NASJET gives Middle East customers all the benefits of aircraft ownership at a very reasonable cost. NASJET service is available 24 hours a day 7 days a week and provides accessibility to over 850 NetJets operating worldwide. To add on, NAS also owns an aircraft maintenance subsidiary known as NAS tech. NAS tech has a license the government through the Saudi Civil Aviation Authority and Cayman Island Aviation Authority. They are also aiming to acquire licenses from Federal American Authority and European Aviation Safety Agency. NAS Tech ensures that all the NAS aircraft maintain renowned world-class safety standards (National Airline Services, 2011, p.4).

Discussion

Strategy Selection

The Airlines industry in Saudi Arabia started separating itself into strategic commercial units in the year 2006. In this view, the catering section of this airline was the first to be considered during this strategy selection. In the year 2007, the strategic units in this airline were converted into companies with NAS Airline being one of the formed companies. Ground, technological, air cargo and catering services were to be strategically selected. The strategy of Saudi Airlines has been to constantly invent and improvise on the product blend. The other strategy is to offer an eminent service to its aboard, on-ground and internet clients at extremely competitive charges. The product mix in this industry is renewed after every four months thereby observing modern market patterns and popular demand (Oxford Business Group, 2008).

Technological know-how

NAS Airlines identifies technological savings as vital in supporting the airline’s status as the top travel center. This airline has realized the significance of technology investments to sustain and expand its business based on the travel impetus in the nation. It has also publicized the victorious execution of the SAP venture Resource design. This is commercial software for making sure that best practices are carried out in this industry. NAS Airlines applies this technology to gain a competitive advantage over its rivals and adjust to rising trends. The SAP venture Resource design software enables this airline to modernize its back-office procedures and offer the required support to front-line issues. This improves client goods and services, augments profits, reduces expenses, and increases sufficiency and output. SAP also plays a significant part in transforming the airline’s IT section to public services IT supplier form. This assists this airline in its attempts to excel and allows its’ take-off plan in becoming the leading world airline. It also supports the indispensable roles of the airline’s procedures and undertakings effectively. The execution of this new technology is part of a general strategic program aimed at enhancing the progress of the airline’s privatization tactics and responding to market situations (Rust, 1996).

Promotion

NAS Airlines offers up to 30% selling charges, which are selected in a manner that fits every age, flavor occasion, and pouch. Besides the conformist in-flight merchandise array of international prominent designer fragrances and award items, NAS Airlines is also overconfident to provide goods that are travel retail and unavailable in the regional markets. The combination of products in NAS Airlines company colors is particularly fashionable with a collector’s enjoyment and ideal mementos for children and grownups. This has led to the airline’s substantial growth, making enormous steps, prevailing in many global awards, and growing into a reliable and firm business. The Airlines service is now expanded to its clients via the mail order service and internet shopping. There are exceptional seasonal promotion movements planned for travelers and crewmembers. Other continuing promotions have also been invented that are advantageous to travelers and the sales workforce. A product is chosen from the entire product range and both customers and top suppliers of these products are given gifts at no cost. This is done every month. This type of promotion is greatly victorious and increases product sales (Vollmer, 2008 p.243).

7P’s in Marketing

The 7P’s in marketing is a concept of the marketing mix that is used by NAS Airlines to draw and retain clients. These 7p’s include product, price, Place, Promotion, People, Process, and Physical Evidence. The product must offer value to the client though it does not have to be touchable. It entails bringing in new products or inventing the already existing ones. Pricing must be aggressive and must involve good returns. Place refers to where the clients can purchase the goods and the means of distribution. This can be online or through intermediaries. Promotion involves conversing with the consumers about the products offered by a company. It communicates the characteristics of a certain product as well as the gains associated with its use. People refer to the consumers, staff, board, and everyone who contributes to the progress of the company. Everyone needs to recognize that the characteristics of the products dealt with in a company lie in the hands of the people. The process is the techniques and practices of offering a service. It is crucial to have meticulous knowledge on whether the services offered are useful to the clients. Physical evidence is the experience associated with the use of a product or service (Vollmer, 2008 p.243).

Managing service encounters

To be an efficient service director in NAS Airlines one needs to behave more than nonstop service management deals. It should be noted that the role and script theory are two distinct approaches to managing service encounters in NAS Airlines. The role theory involves an educated set of actions that direct how a person works in a given environment. Duties and responsibilities are passed down from the staff through training. By comprehending the structures of duties of each worker, the managers can apply indirect management of the service encounter. Customer satisfaction in this case depends on how the clients and service providers execute their tasks relative to anticipations. This is known as role congruence. Script theory, on the other hand, is an expansion of the role theory. It deals with the use of major words and axioms, which both partakers are familiar with, and as a result, can be used by staff members to direct customers in a transaction. Many companies including NAS Airlines make scripts for urgent conditions. It is thus a tool for dealing with problems. A fundamental difference between these two theories is that role theory is founded on the cohesion of behavior across persons with the interpersonal service encounter being its center of attention while script theory is founded on personal differences resulting from the social and artistic experience. An example of good management of service encounters in NAS Airlines is through how staff members respond to phone calls while attending clients (Vollmer, 2008 p.243).

Customer involvement in service processes.

A Service process is an association of technology and organizational systems designed to offer services that meet the needs of consumers. Customer involvement refers to the degree of relation the client has with an organization’s service system and the degree to which the client can influence the service conveyance process. The degree of customer involvement in the generation of service is an aspect used to categorize services in NAS Airlines. Customer fulfillment is the most fundamental context underlying customer involvement in service processes. It is therefore of vital significance that the service process and the services it is intended to offer to meet the needs of the corporation’s customers. There is a need to focus on relations between the marketing and processes functions and to incorporate these tasks for the betterment of this organization (Rust, 1996).

Pricing services

Attaching a just and precise price tag to a company’s products might be a problematic act. The victory of any products and services depends upon the corporation’s capacity to set a good pricing strategy. While pricing services, NAS Airlines assesses what its rival companies are charging for identical services. The company also focuses on the prevailing market and the influence of its geographical position on its pricing strategy. The law of demand and supply is also put into consideration especially if there are other companies in the locality offering the same services. The last thing this airline puts into consideration is reputation. In a company with an astral reputation, clients are likely to give more for services since they have the acuity of getting more (Rust, 1996).

Localization

NAS Airlines is capable of offering services to all nations of the world. Consistency, security, suitable connections, and flight programs are features of this airline. Since this airline bridges different parts of the globe, then it has an exclusive competitive advantage and increased mobility enabling the clients to transport their cargo with no difficulties.

Logistics and Distribution

The management of the supply of goods and services between the source and the place of utilization to satisfy the needs of clients is highly developed in NAS Airlines. This adds to both time and place utility (Rust, 1996).

NAS Airlines Accomplishments

In the year 2009, the airline made a profit and this grew twice as much in the following year. The profits were in the range of one billion of the local currency the riyal. In 2010, this airline transported over 15 million travelers and documented a 14% increase in earnings (Oxford Business Group, 2008).

Challenges of NAS Airlines

Impulsive challenges and transformations are the norms in an organization that is very susceptible to financial, regulatory, security, ecological, and other external pressures beyond the management’s total control. Challenges for the airline industry are found in fields such as logistics, company intelligence, Human resources, and lifecycle management. The global depression and the deteriorating demand for air tours in major economies, particularly in Saudi Arabia, are among the challenges facing this airline industry (National Airline Services, 2011. p.1-2).

Conclusion

NAS Airlines has suffered from chaotic times. It should concentrate on convenient constituents when processing its marketing plans. It should also sustain its marketing spending. This airline should not allow destruction from financial, regulatory, security, ecological, and other external pressures beyond the management’s total control. A crucial emphasis on customer associations and brand organization should be maintained. Marketers must comprehend every step of the clients’ journey and make sure that consumers are engaged all through.

References

National Airline Services, (2011). History of NAS airline. Web.

Oxford Business Group (2008). The Report: Saudi Arabia. London: Oxford Business Group.

Rust, T. (1996). Service marketing. New York: Harper Collins College.

Shaw, S. (2007). Airline Marketing and Management. New York: Ashgate Publishing.

Vollmer, C. (2008). Always On: Advertising, Marketing, and Media in an Era of Consumer Control, New York: McGraw-Hill.

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