1.

Executive Summary

In 1955 Pakistan international Airline formed. It is 16th largest airline in Asia, operating scheduled
services to 62 destinations throughout Asia. Pakistan International Airlines is the first Pakistani
airline a state-owned enterprise of the Government of Pakistan. Headquartered at Jinnah
International Airport in Karachi it operates scheduled services to 24 domestic destinations and 38
international destinations in 27 countries across Asia, Europe, and North America. There are 13000
employees working in PIA at different designations.

In this report we did SWOT and we understand the opportunities which will be beneficial for the
success and also are aware of threats. There are four segments Religious Travel, Business Travel,
Leisure Travel & Tourist Travel.

PIA facing these issues like corruption held in every field like buying new aircrafts, and cargo.
Fleets are very old, included 39 aircrafts. Increase in fuel prices and devaluation of local
currency. Lack of technical coaching programs and high overhead cost and expenses
We do the competitors analysis, study their strengths and weaknesses than select marketing
strategies, and give our recommendations.
 2. Introduction of PIA:

In 1955 Pakistan international Airline formed. It is 16th largest airline in Asia, operating scheduled
services to 62 destinations throughout Asia.

Pakistan International Airlines is the first state-owned enterprise of the Government of Pakistan.

Headquartered at Jinnah International Airport in Karachi it operates scheduled services to 24

domestic destinations and 38 international destinations in 27 countries across Asia, Europe, and
North America. Its main bases are at Karachi, Lahore, and Islamabad/Rawalpindi.

Vision

“Our vision is to become a well-known organization in providing airline service by providing

good quality and safety of the customers.”

Mission
“Employee groups can contribute towards creating PIA a worldwide airline of alternative through
many milestones.”

• Taking part in world alliances

• Mistreatment progressive technologies

• Guaranteeing cost-efficient measures in procurable and operations

3. Current Marketing Situation

1. Segments Of the Market

i. Religious Travel

ii. Business Travel

iii. Leisure Travel

iv. Tourist Travel

2. Competitors Analysis

i. Shaheen Airlines:

Strengths
 Sales network and high distribution networks.
 It operates internationally including Qatar, UAE.
 It serves business class
 They has a very goodwill in flights schedule so people prefer it most.

Weaknesses
 Most of managerial staff is not well trained
 This airline has not developed proper promotional international markets
 Strategy
Shaheen is promoting by giving Ad’s with UBL. “UBL” strategy business alliance adv.
Use any UBL card on Shaheen airline to enjoy an amazing discount @9% and avail a
chance to win a weekly return ticket to Dubai.

ii. Serene airline:

Strengths
 It’s a private domestic airline of Pakistan and it has 6 domestic destinations. It’s a 4th
airline which operates domestically.
 It has avant-garde technology.
 It provides top- notch services.
 The staff and crew are very professional and skilled.

Weaknesses
 It offers low fares.
 It has few aircrafts( only Boeing 737)

Strategies
 It plans to initially grow its network to 8 destinations including Multan and Skardu
 It plans to expand domestically and internationally as well
 It’s seeking to differentiate from its competitors by focusing on customer services and
reliability through its operations.
 It provides discount for families and infant travel free.
3. Pakistan International Airlines fleet includes the following
 4. SWOT Analysis
SWOT Analysis

STRENGHTS

 Brand advantage.
 Leading air carrier.
 Government airline.
 Regular flights available.
 E-ticketing.
 Monopoly of long routes.

WEAKNESS

 Increase financial crisis.

 Low motivation in employees.
 Weak governance / controlling structure.
 Overstaffing.
 Nepotism.
 Market share declining.
 Lack of technology.

OPPORTUNITIES

 Travelling will expand.

 Increase the tourism

THREATS

 Threats of new entrance of low cost airlines.

 Terrorist activities.
 Fluctuation in oil prices.
 Competitive airlines.
 Political interference.
 Instable economics condition.
5. Objectives and Issues

Objectives

 To acquire, own, or participate within the running management of any hotel or business
connected thereupon.
 Provide customers better value and tried to satisfied their needs
 Introduced new technology for the follow up like android app
 To provide training to the employees for betterment of the company
 To provide augmented service to the employees and customers

Issues
 PIA is affected by severe monetary shortcoming, and discrimination
 Corruption held in every field like buying new aircrafts, and cargo.
 PIA’s fleets are very old, included 39 aircrafts
 Increase in fuel prices and devaluation of local currency.
 Lack of implementation of vision and mission
 Lack of technical coaching programs
 High overhead cost and expenses
 6. Marketing Strategy

Segmentation

We can make segments on the basis of response of people as well. In case of PIA we can’t make
segments through demographic, psychographic, and geographic factors. On the basis of these
factors there are four main segments of PIA.

i. Religious Travel

ii. Business Travel

iii. Leisure Travel

iv. Tourist Travel

i. Religious Travel

As PIA is an international airline. Mostly the reason of survival of PIA is due to flights of hajj and
Umrah passengers. PIA has a monopoly to take them to their destination. There are also some
people who travel through PIA to go to Iran and Iraq fir their religious activities. So PIA makes
segment on according to the responses of those people who go for religious activities. Another
reasons of making this segment is there are many religious sight of Sikh groups and Hindu groups
so PIA should definitely cater these groups and put them in one segment as their preferences
choices and behavior are same. PIA takes flight from international destinations and also takes
people away to their own destination. The Sikh and Hindu groups want to come in Pakistan for
their religious sights so there is a need gap and opportunity for PIA. These people don’t come to
Pakistan due to its terrorist activities but now many activities have been controlled so PIA should
avail this opportunity according to the response and pick these religious people to raise its revenue.
ii. Business Travel

PIA makes a segment on responses of people. Usually a business class or executive class demand
good facilities during flights. Usually these classes don’t pay by their pockets the companies bear
the expenses so they want luxurious facility. Their frequency of travel is same. PIA as a
government airline hires to provide best services to customers. It tries to remove all security issues
and technological issues regarding to the organization and planes some of people from business
class like to travel through PIA as they are brand loyal and are very self-expressive as PIA is an
international government airline so all of them who afford the expenses or from business class or
are executive so PIA has this segment because they can’t afford the expenses.

iii. Leisure Travel

PIA has third segment of leisure travel. People who go abroad for spending vacations. PIA takes
them to different countries. They choose PIA is the only one which operates internationally.
Moreover there are some people who use to travel for spending their vacation in different cities of
Pakistan. For example from Karachi to Lahore so the people who are in this segment have same
choices and reasons of travelling their behavior is same. They all like the brand name, time factor
in PIA. It is most convenient that is why people choose it. PIA increases its domestic flights as
well as international flights to cater this class.

iv. Tourist Travel

People are fond of travelling and tourism. According to the responses of people PIA should make
a segment. There are a lot of tourists who come to Pakistan for visiting hilly areas. There is a need
gap that PIA should identify. It should cater local tourists and foreign tourists. PIA should
collaborate with PTDC (Pakistan Tourism Development Cooperation) which manages and gives
an information to tourists to visit Pakistan’s hilly areas. When PIA will collaborate with PTDC,
the tourists who go to PTDC for taking information regarding the tourism in Pakistan , this
authority refer PIA to people for traveling, so this is how, PIA will expand and earn more. PIA due
to this opportunity will cater these local tourist and foreign tourists (UK, japan, china, etc.) who
come to Pakistan for tour. So as a result of this response given by people so PIA makes a segments
for targeting.
 Positioning

 Positioning by safety

 Positioning by giving discount or lowering prices and high customer service.

 Positioning by giving gifts to passengers

1. PIA positions itself by providing safety and security to customers so that they feel safe during
travelling. Most of the reasons why people leave PIA are due to safety and security issues. PIA
analysis it’s all competitors (domestic) and after that divided this.

2. Another position strategy PIA is to capture the mind of customer after analyzing competitors,
it offers many gifts to newly married couples and infants also. This is a good positioning
strategy. It delights the customer as well as good for the airline too.

Targeting

PIA has most attractive segment as an airline. PIA will choose these four segments. It cannot leave
any segment because otherwise it will travel with empty plane there will be no passengers so these
4 segments are important for PIA to target. While choosing one segment we see many filters. The
company see the size of segment, growth rate, 5 porter’s factors but in case of PIA, if will choose
or target these 4 segments though these factors exists really.

Religious Business Leisure Tourist

Travel Travel Travel Travel

Targeting
 4Ps

These tools are called 4p's product, price, placement, and promotion. These 4p's are discussed on
PIA.

1) Product
A product is anything that can be offered to a market for its consumption that might satisfy a
need or a want. We think most products are physical but it also includes services. PIA is
providing services to nation which can be categorized as follows:

 PIA cargo services

First PIA start its cargo services in 1974 and start its initial flights to USA, Europe and Hong
Kong and with a very short time period build a great reputation by providing the great
services such that timely deliveries, operational excellence and high standard of customer
service

2) Pricing

PIA set the price on their services. Price that the customer has to pay for the services. Now
how are prices set? PIA can set the prices by

 Pricing of passenger tickets

 Pricing of cargo airways bill

PIA uses different pricing policies for two routes

 Domestic routes

Prices of domestic routes are fixed by the government of Pakistan. Management estimates the
price by using the following methods like analysis competitor’s prices and offers, estimating
cost, determining demand and finally the approval is set by the government.
 International routes

The price of international routes is set by international airline travel association. The
international airline travel association ticket show the full price for the routes. PIA established
different pricing strategy on different like cost of operation, competitor’s prices, types of
aircraft used, and demand for seat.

3) Placement

PIA has partially owned distribution network.

 PIA has involved agents and in selling tickets to consumers. Many travel and reservation
tickets to consumers.

 Many travel agents provides auto ticketing and reservation system. For example IATA
agencies which deal with PIA.

 PIA has flights connecting Pakistan with major cities and business headquarters across the
world.

 Tickets for PIA are available in their websites. This is the distribution strategy of PIA.

4) Promotion

PIA is not investing in promotion. Agents play role in promotion as they convince traveler to travel
through PIA.

i. Advertising
PIA gives advertisement relating to its current operations in newspapers and magazines. E.g.
Brochures, time magazines, Spider and aurora and in newspapers Jung, Dawn and business
recorder.

ii. Sale Promotion

PIA is giving different benefits and incentives to consumers and agents.

a) Consumer Promotion

It's giving benefits of purchasing one ticket and play 50% for your friend or family member
 b) Trade Promotion

PIA provides commission to sales agents on selling international tickets 12% whereas 5% on
domestic tickets

iii. Personal Selling:

PIA has many agents for selling its tickets. So when those agents directly sell tickets to
consumers or when they communicate one to one for selling and purchasing tickets is personal
selling.

iv. Public Relations

PIA has very weak potential in this. It hasn't strong relationship with media or it's an unpaid
promotional activity. People themselves admire your company. So PIA is not a safe and good
airline for people as there happened a lot of accidents. PIA has many negative publicity as well
(propaganda). Many talk shows talk about the poor services and poor system of PIA. But
whereas, whenever PIA purchases any aircraft which comes on air.
7. Action Program
 8. Budget

Operating performance (Millions)

Years Revenues Profit or(Loss)

2019 1000 20,000

2018 (235000) (48,000)

2017 (100000) (44,110)

2016 (88997) (45,381)

2015 (104545) (34,995)

PIA Financial Data

PIA Pakistan

Stock exchange Karachi Major Industry: Transportation

Sub Industry: Airlines

2018 SALES 90,843,729 Employees: 13000

(Year Ending Jan
2019).

CURRENCY: Pakistan Rupees Market Cap: 24,022,963.53

 9. Control
Challenges for PIA
High Amount of debt
Rules and regulations
Inefficient use of resources
Overstaffing
Reward system
Salary discrimination
Strategies
PIA reduces debts and tries
to increase profits
The high authorities keep
control of rules and
regulations to improve the
image of the company
The strategy is that if
someone is not utilizing the
resources properly he
should be fired
Reduces the number of
employees and retired old
citizens
Rewards are associated
with a hit and win plan.
If a person achieve the
target he/she will be able to
get the reward
Introduce a competitive
environment in the
organization and eliminate
salary discrimination.
10. Recommendations:

 Improve technical coaching programs

 Improve communication skills
 Overcome late flights and shipment issues
 Decrease the overhead cost and expenses
 Decentralization
 Employee authorization