Needs are things that are essential to human survival, or uncompromisable items (such as shelter, food, water).

Wants are things that are not essential to survival, or things that could be passed up on, but are still fulfilling some desire (such as luxury products). These are usually shaped by culture or individual preferences.

Demands are when people are willing and able to buy a product at a given price.

Example: Grab Holdings Inc. identified that customers needed convenient transport so they launched an app that provides transport services to maximise satisfaction of customer needs and wants. Now, they also provide grocery services, food services, and an e-wallet. All these were launched because the founders had a good understanding of customer needs and wants within the marketplace.

Stage 2: Design a customer value driven marketing strategy

We need to know the target market and also the value proposition

Target market (grab)- Grab's target segment is the price-conscious mass market that includes middle- and lower-income consumers. To meet the needs of this segment, Grab positioned itself as an affordable and convenient transport service provider offering a range of options for specific transport needs via its mobile application

All age ranges of people, people who does not have a car license, people who are lazy and tired to drive due to traffic jam, people who have faced some of their personal issues like their car was in repairing and etc. 

Value proposition - meaning how can we give the best serve to our customers.  For examples- Grab aims to challenge customers' economic challenges by aiming for Everyday Everything App for the people in SEA.

It offers rides conducted on time and booked online without any hassle. furthermore , it also serves for deliveries for parcels, food, and daily grocery needs are all done at the customer's preferred time intervals.

Stage 3: Construct an integrated marketing program that delivers superior value.

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers based on researches done on consumer needs and wants.

Grab uses the 4Ps of Marketing—Product, Price, Place, and Promotion. Product is represented on Grab Car's strategy of maintaining sanitation, safety, and sobriety among its drivers; Price is denoted by the different price schemes offered by Grab; Place is shown through the various areas where people can book Grab Car; and Promotion is represented by the different means of promoting the services of Grab.

Stage 4: Engage customers, build profitable relationships, and create customer delight.

Customer relationship management (CRM)—the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

One of Grab’s largest differentiators is that they have worked hard to earn consumers’ trust — which can be seen in a few important factors.

Stage 5: Capture value from customers to create profits and customer equity.

Capturing value in return in the form of sales, market share, advocacy and profits.

Creating customer loyalty and retention.

Example: Grab get customer feedback by having a help centre. If customer having a problem on thee services, they can do a feedback to grab. As a form of solutions, they will provide a voucher for customer to redeem on their next Grab purchase.

Stage 1

The marketplace of Apple is a convenient destination to discover, buy and sell items with people in your community.

Apple, the creators of the iPhone, came to the conclusion that the need for mobility, flexibility, and reliability are key to satisfying everyone involved in the marketing process. The customer has to be able to use the iPhone everywhere and always have a connection, it needs to be possible to use it the way you want it to use. Apple followed a few of these motivations as its best. An iPhone increases one's self-confidence, status, and reassurance.

Stage 2

The client has always been Apple's first priority. Because of this, it discourages its technologists from driving product innovation and instead orders its designers to produce something that they would want to use. Apple keeps its messaging and images simple and lets its goods speak for themselves, which enables this. For instance, the iPhone's home button was removed years ago. While other brands claim to do the same, Apple is the master of customer-centric marketing.

Stage 3

The products of Apple are iPhone, Mac, iPad,Apple watch, Apple tv, and some services. Next, Apple built itself as a premium brand which is a premium pricing strategy. The promotion of Apple uses are advertising such as online advertisement and TV, sales promotions. The places where Apple to sell their products are Apple store, telecommunications companies, authorized resellers and others.

Stage 4

Building Customer Relationships

Apple is known for providing excellent customer service. Apple has a more engaged and loyal customer base that focuses on the customer's needs rather than the product itself. During Covid-19, to protect the people, Apple and Google announced a joint effort to enable the use of Bluetooth technology to help the governments and the health authorities to reduce the spread of the virus. 

Stage 5

Apple has established its value through voluntary exchange with its customers; it has persuaded them that its products are more valuable than those of its rivals, and undeniably, those customers agree.

Stage 1

The needs, people buyings Mercedez benz cars is a good decisions this is because you not only buying a car, in fact you are buying a luxury cars that provides the performance that you demanded and the sportiness design. Mecedez is a well-known cars manifactors. As a formular 1 champions, the company will provide the power of the engine to the manifactured cars for people. People are buying this cars because of the peformance that they wants so they can feel satisfied. Mercedes also provides many types of vechicle like sedan, suv and hatchbacks so people can choose what they demand

stage 2

mercedes benz target markets are middle-aged upper class and young people. throughout the brand history,uts target audience had always focused on upper class individuals aged above 40

Stage 3

Product: 

The product is the tangible offering that the company provides to the customers. Mercedes-Benz should focus on developing high-quality luxury cars, SUVs, and electric vehicles that meet the needs and preferences of their target audience. This includes offering a variety of models with unique features and customizations to cater to their customer's demands.

Stage 4

Mercedes-Benz – one of the most highly respected car manufacturers in the world – used to have a reputation for dismal customer service.

A special training program was developed called “LEAD” (Listen, Empathize, Add value and Delight; see Michelli “Driven to Delight”, 2016, s. 31). A special website was created where positive customer experiences explained the entire organization, and where LEAD was shown how to be implemented towards the customers. All employees in the organization were trained in LEAD at different levels.

All programs were investigated and renewed to build value for the customers, and all customer journeys were mapped and defined in a new streamlined process for pre-sales, sales and after sales using colored wheels for ease of understanding. So-called “customer pain points” (like rigid payment process) were removed and digital booking and payment processes were implemented to make the service experience more convenient for the customer. Training programs based on the Sales-and-Service process wheels and customer touch points were implemented.

stage 5

Mercedes-Benz supports its drivers with personalization, even after they've made a purchase.

2. Malaysia Airlines has extensive operations in South Asia, Middle East, Australia and other global destinations

3. One of the most popular airlines across the world

4. Strong brand recall and visibility of Malaysia Airlines due to excellent advertising and marketing

5. The company has a strong workforce of over 14,000 employees

6. Malaysia Airlines covers over 50 international and 35 domestic destinations with a fleet size of over 100

7. Excellent customer service and in-flight entertainment services offered by the airline

Weakness
1. Limited domestic traffic of the airline

2. Malaysia Airlines has intense competition which means limited market share

Opportunities
1. Increasing global presence of Malaysia Airlines by tie-ups and partnerships

2. More routes internationally to popular destinations can increase business

3. More services and choices to customers at airport facilities

Threats
1. Rising fuel costs can reduce margins of Malaysia Airlines
2. Changing govt policies and regulations of regulatory bodies
2. Increasing competition in South East Asian market


Market Development: Malaysia Airlines can introduce its existing products to new markets by expanding its network and targeting new customer segments. To attract new customers, it can consider launching flights to new destinations, particularly in high-growth regions.

Promotion
Malaysia Airlines made several efforts to rebrand itself as a premium safe carrier after 2014. It takes its public relations very seriously as it sponsors English premier league team Liverpool FC giving it the rights to be its official global airline partner. Also, Malaysia Airlines advertises its services through traditional media such as TV adverts, newspaper adverts and digital media through Google ads. Further it also undertakes sales promotion activities offering discounts on certain travel routes during the year. As a part of customer retention strategy, Malaysia Airlines also offers a frequent flyer program to its regular customers. It also maintains a dedicated website for its airlines for making bookings and other information.

3. Extensive Network: Air Asia has a strong network across the Asia-Pacific region, with more than 100 destinations in 22 countries, providing passengers with greater accessibility and convenience.

4. Operational Efficiency: The airline's efficient operations and lean cost structure enable it to maintain low fares and high profitability.

WEAKNESSES:
1. Limited Services: Air Asia operates as a low-cost airline, which means that it does not offer some of the services and amenities that other full-service carriers do, such as in-flight meals or entertainment systems.

2. Narrow Profit Margins: As a low-cost airline, Air Asia operates on narrow profit margins, which makes it susceptible to economic downturns and price wars in the industry.

3. Overreliance on One Market: Air Asia has a significant presence in the Southeast Asian market, and is heavily reliant on it for revenue generation. This exposes the airline to geopolitical and economic risks in the region.

4. Limited Fleet: Air Asia operates a limited fleet of Airbus aircraft, which could impact its ability to expand its services and destinations.

OPPORTUNITIES:
1. Emerging Markets: Air Asia could expand its operations into emerging markets in Asia, such as India, China, and Vietnam, where there is growing demand for air travel.

2. Ancillary Services: The airline could increase revenue by offering more ancillary services such as baggage allowance, priority boarding and lounge access.

3. Strategic Alliances: Air Asia could form strategic alliances with other airlines or travel companies to expand its network and offer more services to customers.

4. Digital Transformation: The airline could leverage technology to improve its operations, enhance customer experience, and offer new products and services.

THREATS:
1. Intense Competition: Air Asia faces intense competition from other low-cost airlines as well as full-service carriers in the aviation industry, which could impact its market share and profitability.

2. Volatility in Fuel Prices: Fluctuations in fuel prices could impact Air Asia's profitability, as fuel costs account for a significant portion of its operating expenses.

3. Geopolitical Risks: Air Asia operates in various countries, which exposes it to geopolitical risks such as political instability, regulatory changes, and currency fluctuations.

4. Natural Disasters: Air Asia operates in regions that are prone to natural disasters such as typhoons and earthquakes, which could disrupt its operations and affect revenue generation.

2. Product/market expansion grid strategies suggested.
Develop a new healthy menu item: Based on the market research, KFC can develop a new healthy menu item that meets the needs and preferences of its target audience. This could be a low-calorie grilled chicken sandwich, a vegetarian or vegan option, or a gluten-free fried chicken.(Product development)

Promote the new product: Use targeted marketing campaigns to promote the new healthy menu item. This could include social media campaigns, influencer marketing, and in-store promotions.(Market development)

3. Appropriate marketing mix to implement the strategy.
 Promotion: KFC can promote the new healthy menu items through various channels such as social media, email marketing, and influencer marketing.
They can also use traditional advertising methods such as TV and print advertisements to reach a wider audience. Additionally, KFC can use customer feedback to improve the marketing message and promote the aspects of the new menu that are most appealing to customers.

Strengths

WEAKNESS

Opportunity

Surge in overseas travel-In Asia where Air Asia is based out of there has been a surge in business travel. Destinations like Singapore, Malaysia, and Bangkok are popular in the world tourist map and vacation seasons also see a surge in pleasure travel.

Low-cost position-Asia has established a reputation as a low-cost carrier airline in the Asian and global market. It would be a strong competitive edge to AirAsia after the pandemic of covid-19 because the purchasing power of the people has dropped significantly.

Accelerated technological innovations and advances-The innovations and advances of technology are improving industrial productivity, allowing suppliers to manufacture a vast array of products and services. This can help Airasia to significantly venture into adjacent products.

Threats

PRODUCT MARKET EXPANSION GRID - Market Penetration

MARKETING MIX – Promotion

AirAsia is a low-cost multinational Malaysian airline. DRB-HICOM, a government conglomerate laid the foundation of AirAsia in 1993 and it became operational on Nov 18, 1996. Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor, Malaysia. 

AirAsia has a large fleet size comprising 300 aircraft. The airline offers 400 destinations both local and international in 25 countries across the world. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market.

2. LOW COST

According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the world’s lowest airline fare. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market.

Many airline companies have entered the airline industry and they have made the market very competitive. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable.

2. LIMITATION DESTINATIONS 

AirAsia is an experienced brand in the airline industry. But the company is only operating its business only in 25 countries. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. The company is over depending on the Asian market as its main source of earning and it’s a very risky business strategy.

Opportunities Available To AirAsia
1. LLC POSITION

As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. It would be a strong competitive edge to AirAsia after the pandemic of covid-19 because the purchasing power of the people has dropped significantly. The airline brand should exploit these circumstances.

2. INDIAN MARKET

The Indian market is highly price-conscious. The airline company has already got a subsidiary AirAsia India for the local market. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. Since AirAsia is a low-cost airline and the Indian market is price-conscious, it would be a win-win situation for both

Threats AirAsia has to face
1. OTHER LCCS IN THE MARKET

Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia.

2. INCREASING COST

The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. The increasing cost has made it impossible for the company to offer low prices and remain profitable.

Marketing mix
Price strategy - AirAsia also has an attractive point which is the price is always cheaper than Grab. For example, when in a high fare session , when you use Grab from home to Taylor’s University, you need to pay RM38 while if you use AirAsia ride it just RM22. In this situation, AirAsia rides have a lower price than Grab while they provide the same services.

Domino's

Product Attribute

Pizza Hut

Desirable Benefits

Domino's

Desirable Benefits

Pizza Hut

Beliefs and Values

Domino's

Beliefs and Values

Reference: Aman, A. (2022). AirAsia X net loss widens to RM652.52mil in Q4. New Straits Times. 24 August. Retrieved from: https://www.nst.com.my/business/2022/08/825209/airasia-x-net-loss-widens-rm65252mil-q4#:~:text=KUALA%20LUMPUR%3A%20AirAsia%20X%20Bhd,year%20ended%20June%2030%2C%202022.