About Air Arabia Maroc

A Moroccan LC airline, setup as a Joint

Venture between various Moroccan

investors and Air Arabia.
Main 2nd hub of AA in North Africa set up
in 2009 (M V International Airport).
Reaches out to 25 different destinations
(mainly in Western Europe).
Has 4 airports in Morocco.
Current Market share 13.3%.

Market Share Air Line Industry Morocco 2010

4% 7%

AirArabia
Jet4you
RAM
Others

36%

53%

SWOT

Action Plans

Dimension
s to be
studied

Roles &
Responsibilit
ies

What
customers
Value

Porters 5
Forces

What Customers Value

Price
Destinations & Direct flights
Luggage (quantity and safety)
Punctuality
Check-in process
Secure engines
Customer service
Reliable on-line system

Methodology

Analysis of secondary data

Customer satisfaction questionnaires
Focus groups for employees
Direct observation
Involve different departments in the
different decision making process

Results

Porters 5 Forces Model

>>> HIGH <<<
- Emergence of low-cost
airlines
-E-commerce > global
competition
>>> MEDIUM <<<
-Growing market

Bargaining
power of
suppliers
>>> HIGH <<<
- Few suppliers (mainly
Boeing and Airbus)
>>> LOW <<<
- Other transportation
means are not as quick as
airplanes / cannot reach all

Barriers
to entry

Rivalty
in the
industr
y
Threats
of
subsidiar
ies

>>> HIGH <<<

-Capital intensive industry
- Need a very high level of
expertise and skilled
workforce
- la RAM has exclusive
advantages in the Market

Bargaini
ng Power
of Buyers
>>> HIGH <<<
- E-commerce enlarged
customers choice
- Information is accessible
>>> LOW <<<
- RAM has exclusivity on
direct long flights

SWOT Analysis

First mover low cost from MENA region

Strong final performance of the mother

company increasing net profit over 200%

since 2005
Advantages in their main hub Sharjah
Airport (landing and parking fees)
25 destinations (mostly in west Europe)
Steady growth compared to neighbouring
countries

mistakes
Luggage loss
Bad customer service
Personnel difficult to
contact
Present in only 4
airports in Morocco
Low brand awareness

Recurrent billing

Cost structure (fuel

constitutes 38% of
total operating costs)
Limited destination
(Africa)
Air Arabia Morocco
does not have full
control over its
operations
Less flexibility and
responsiveness

SWOT (CONT)

Fuel prices
Competition
Weather
disasters
Epidemics
Moroccan
regulations

Expansion in other

countries
Join venture with
FlyYet.com
Strengthening brand
name
Economic and
touristic growth
La RAM loosing its
exclusive advantages

Overall Goal of the

Intervention: How to
Increase Air Arabia
Morocco Market Share
by 5% towards 2020?

Recommendations to increase
market share

Marketing campaign branding

Promotions and customer loyalty

programs
Adding African destinations
Adding new airports in Morocco
Improving the on-line platform
Improving the luggage management
software

Intervention Areas

Destinations
Customer satisfaction
Reliable on-line system
Brand awareness
Finance department will overview all
operations

Parties Involved

Marketing Department
Operations Department
IT Department

With finance department overseeing all

operations

Roles and Responsibilities

Brand
Awareness
Marketing
Consultant
Manager

Provide critical

data about the

companys
marketing strategy.
Jointly brainstorm
with consultants
about MKT
interventions.
Evaluate and
validate the MKT
strategy.
Implement it.

Team

Explain the importance o

increasing customers
awareness about the
brand.
Discuss the problems the
current strategy has.
Discussing the brand
values and image we
want to promote.
Draft a MKT strategy for
the company.
Implement it.

Customer Satisfaction
Customer
Relation
Manager

Provide data

about customer
satisfaction,
complaints
Provide KPIs used
to measure
customer
satisfaction.

Consultant
Team

Gather data

evaluation
customer
satisfaction (run
customer
satisfaction
questionnaires)
Relate customer
satisfaction to
factors from other
departments.

On-line Platform
Operations & IT
Managers
Provide data about
how online website
is run and what
operations can be
done through the
system.
Evaluate the
efficiency of the
online transactions.
Increment the

Consultant
Team

Evaluate the

efficiency of the
online
transactions.

Destinations
Operations
Manager

Data about their

current logistics.
Explore new
destinations and
their feasibility.
Negotiate with
airports.

Consultant
Team

Explore new

destinations and
their feasibility.
Evaluate the
contracts/partners
hips that will
emerge.

Action Plans for each

Recommendation

Objectives

Reliable Online
Platform

Increasing Brand
Awareness

Tasks

Success
Criteria

Time Frame

Resources

IT must spot the

dysfunctions of the
system and correct
them.
Alternatively, ask
the software
developer to
customize the
current software if
applicable.
Use business
intelligence
reporting
dashboards to
evaluate
effectiveness and
efficiency of the
corrective action in
the other
departments.

Important
decrease in
the number
of
complaints
related to
online
reservation
payment.
Increased
customer
satisfaction
and
retention.

Immediate action
could be taken:
correcting
payment
dysfunctions of
the online
platform can be
achieved this
month with
existing resources.

Time : IT will
have to
dedicate his/her
time exclusively
to the solving of
this problem.
Customization:
around 720 DH
per hour for a
small class
development
company.

Collect data about

current brand
recognition in
Morocco.
Evaluate cost of the
campaign and the
expected ROI
Offer promotions
and deals on the
website.

Higher
number of
customers.
Increased
sales and
profit.
ROI

6 months for
drafting a new
strategy (can be
implemented
the same year. )
immediate
action could be
taken with
existing
resources.

time: drafting
and executing a
strategy is time
consuming.
The mother
company should
allocate 6 to
20% of its
revenues to its
marketing

Objectives

Offering more
Destinations

Increasing
Customer
Satisfaction

Tasks

Success Criteria

Time Frame

Resources

Collect data about the

African destination
highly demanded in the
market.
Study the feasibility of
the trajectory to these
countries.
Conduct a cost/benefit
analysis.
Assess the feasibility of
agreements with the
countries set (PESTEL)

Launching of
at least 3 new
destination in
Africa.
Partnerships
for new
destinations
within Africa.

By 2017
By 2019

Human
Resources
Financial
Resources
Marketing
Logistics

Improve customer
service through online
platform.
Gathering data about
current customer
satisfaction
Analyzing the major
themes that affect
satisfaction
Improving the service
quality
distributing satisfaction
surveys on a regular
basis.

KPI 1: Customer
satisfaction
KPI 2: Customer
retention

Periodicall
y
Semi
Annually

Time
Human
Resources
Financial
resources