Brand Audit PIA - GRP 3
Brand Audit PIA - GRP 3
SUBMITTED TO:
DEDICATION
This report is dedicated to our great mother land Pakistan, our beloved
time towards completing this report & to Greatest of all God Almightly
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Table of Contents
Dedication ………………………………………………………………………………………………………………………. 2
Table of Contents…………………………………………………………………………………………………………………………… 3
Executive Summary……………………………………………………………………………………………………………………….. 5
1 Introduction…………………………………………………………………………………………………………………………….. 6
1.1 Brand Audit……………………………………………………………………………………………………………………….. 6
1.2 Introduction To PIA……………………………………………………………………………………………………………. 7
1.3 Objective of Study……………………………………………………………………………………………………………… 8
1.4 Target Audience ………………………………………………………………………………………………………………… 8
2 Research Methodology…………………………………………………………………………………………………………….. 9
2.1 Introduction ……………………………………………………………………………………………………………………….. 9
2.2 Research Methodology……………………………………………………………………………………………………….. 9
2.2.1 Qualitative Element ……………………………………………………………………………………………….... 9
2.2.2 Quantitative Element ……………………………………………………………………………………………….. 9
2.5 Procedures………………………………………………………………………………………………………………………… 11
2.6 Summary…………………………………………………………………………………………………………………………… 11
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Executive Summary
PIA is the oldest airline and national flag carrier of Pakistan. It is a huge business
having high potentials for growth. The infrastructure is competitive and it has well-
maintained aircrafts. Due to its distinct image of national airline, PIA is able to
charge higher fares than other local airlines. It has several advantages over its local
competitors e.g. due to its business size it has more geographical coverage both
domestically and internationally, it operates in different classes thus able to target
different segments.
This Brand Audit & Service quality report serves an important objective of
evaluating the people`s perspective about PIA, Its brand, deeply held brand
perceptions, Its recall in its target Market, services. Simple research methods and use
of questionnaires have been employed as research tools for gathering the
opinionated people`s pole. It has been taken into importance that people all walks of
life shall be taken on board so that a macro version can be drawn.
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1 INTRODUCTION
We have chosen PIA for our brand audit report. It our national flag carrier and the
first connect of the Pakistan to the world. We will assess PIA on above mentioned
purpose. This will provide us with a comprehensive study of the deeply held
perceptions that are associated with PIA in its target market. We will also assess the
present condition of this brand and will recommend some solutions to the existing
problems with PIA as brand.
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When Pakistan was founded in 1947 it comprised two territories on either side of the
expanse of India. It was in this unusual circumstance that Pakistan International was
formed. Despite wars and economic trouble, the carrier survived to grow and
prosper. Today it maintains a sizeable international route network, in addition to its
services closer to home, with a modern and expanding fleet
Bahawalpur, Chitral, Dalbandin, Dera Ghazi Khan, Dera Ismail Khan, Faisalabad,
Gilgit, Gwadar, Hyderabad, Islamabad, Karachi, Lahore, Moenjodaro, Multan,
Nawabshah, Panjgur, Peshawar, Quetta, Rahim Yar Khan, Sialkot, Skardu, Sukkur
and Turbat.
An Asian and Pacific Rim element to destinations including Bangkok, Beijing, Delhi,
Dhaka, Hong Kong, Kabul, Kathmandu, Kuala Lumpur, Mumbai and Tokyo; a
European element to destinations such as Amsterdam, Barcelona, Birmingham,
Copenhagen, Istanbul, Leeds-Bradford, London, Manchester, Moscow, Oslo and
Paris; a Middle Eastern element to destinations such as Abu Dhabi, Al Ain, Bahrain,
Dammam, Doha, Dubai, Jeddah, Kuwait, Muscat, Riyadh, Sharjah and Zahedan; and
a North American element with destinations such as Chicago, New York and
Toronto.
The airline's secondary bases include Peshawar, Faisalabad, Quetta, Sialkot and
Multan, from which it connects the metropolitan cities with the main bases, the
Middle East and the Far East. The airline is owned by the Government of Pakistan
(87%) and other shareholders (13%).
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PIA has glorifying history; it remained in top 5 airlines of the world from several
decades. It was known for its expertise, hospitality and excellent service, still today
our pilots and engineers are famous for their technical expertise. PIA has also
credited for the development of today‟s most successful airlines of world like
Emirates and Singapore.
People feel privileged to be associated with PIA. Most importantly it is the national
flag carrier, it was nation‟s pride. But for the past two decades both its service level
and popularity has been declined a lot. Today, people do not feel in the same way as
they did in the past. The nations pride became nation‟s burden.
The objective of this research report is to evaluate the people`s perception about the
brand PIA and its alternatives working in the air travel services in Pakistan to
understand sources of brand equity for PIA.
The target audience for this study includes people from all walks of like. It includes
corporate personnel, businessman, students, housewives or even a person who has
never travelled by PIA.
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2 RESEARCH METHODOLOGY
2.1 Introduction
The research methodology employed in this study is in accordance with standard
research studies. And due care has been taken to come up with valid results that can
be used to help build the brand.
We had a focus group meeting with officials of PIA and had a brief conversation
about the branding of PIA.
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A blend of qualitative and quantitative questions has been used to fully gauge
the perception and attitude of the target respondents for the Brand PIA.
The instrument is reliable in that it contains specific questions for the required
objectives. The open ended questions do not lead the respondent to a
particular response and the closed-ended questions are provided with specific
categorical options. The validity of the questionnaire can be judged by the fact
that it is given to the potential respondents.
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2.5 Procedures
Data has been collected through research questionnaires. For this purpose 30
questionnaires, containing open-ended and closed ended questions, are
distributed among the target respondents.
SPSS 17 software has been used to enter data. The data was periodically
entered into the spread sheet parallel to the data collection procedure. After
entering whole of data we made a thorough check for systematic and logical
errors.
2.6 Summary
In order to achieve the study objectives, a painstaking effort has been made to
construct a questionnaire in which every question corresponds to the
objectives. To have a full insight the questionnaire contains open-ended as well
as closed-ended question. Reliability and validity has been taken care of by
employing relevant procedures. In the end data is entered in and analyzed
through SPSS 17 software tool.
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3 INDUSTRY PERSPECTIVE:
I) CORE PRODUCT:
The core product of the airlines industry is the service of transporting passengers and goods
to different destinations. This is supplemented by various other services mentioned ahead.
There are two main elements in Core services:
I. In Flight Services
II. Ground Services
The services provided inside the flight include the core service of travel, crew,
ambience and comfort, in-flight entertainment etc. This is highly variable across
competitors as per brand and different classes of travel.
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Information:
Up to date information regarding flight schedules, ticket fares, promotion schemes, new
policies and systems, etc are available to customers.
Consultation
Airlines are suggesting and designing products like packaged tours to the customer. Also,
providing the customer with various options regarding the route of flight, in-flight cuisine &
benefits asks them to play a role of consultant.
Order taking
The order taking procedure is essentially the booking procedure of the airlines. The
important aspect to be noted here is that the procedure should be smooth, easily understood
and fast. Also provision of instantly updated information about availability of seats and
fares is required.
Billing options available to the customer are plenty including credit card & travelers cheque.
Airlines use the open account system with their corporate clients. Frequent fliers are also
given special payment privileges.
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I. Air Travel
II. Cargo Services
III. Special Operations (Charter Services, Hajj & Umrah Operations, State Officials
Transportation)
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International Destinations:
International Destinations:
Local Destinations:
Local Destinations:
PIA Magzines
Vip Lounges
Vvip Lounges
Paid Protocol
Online Discounts
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Branding of airline industry has to be based on delivering on its promises, long term
customer engagement and continuous innovation in its services. For the airlines to
build a brand image consistent with these, the following brand model proposed:
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4.1 Introduction
Corporate or Family Brand Tracking: PIA is an air travel service provides. The
target market of PIA is corporate/premium customers, up and coming
professionals and VFR traffic (from children to grandparents). Therefore the
objective of the brand audit is decided to track the perception and attitude of
the target market.
Target Audience: The target audience for the Brand Audit of PIA is
mostly young and mid-level corporate professionals in the age
between 25-35 years. Students, who will soon join the job market, are
also a large part of target audience. Veteran professionals and
housewives are also included in the target audience. The selected
target audience is consistent with the target market of PIA.
Geographical Boundaries: Due to limited time and resources, the brand
audit is conducted within the Karachi city.
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Market Size
No study has been conducted ever to estimate the market size of
Pakistan airline industry. Secondly in order to evade taxes, the
local airlines and other small airline business don not show their
exact data, so the market size estimation is not possible at this
time.
Market Structure
The air travel market in Pakistan consist of three major players
namely PIA, Airblue and Shaheen Air which provides scheduled
air travel services besides regular flights, they also provide
transportation for cargo. Besides these key players there many
small businesses in the country which provides charter flight
services.
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With the advent of technological innovations like online booking, e-check in,
RFI baggage management, the trend is now shifting towards how easily and
at proper time the services are available and the consumer is now motivated
by the ease of availability and the safe and secure travelling, rewards program
is another motivational factor this because everyone wants to maximize
his/her benefits and needs some incentive, these programs also tend to
increase customer loyalty. PIA is on its way to streamline its processes in line
with IATA‟s standardized rules, now PIA is providing complete e-ticketing
and improved baggage tracking facility, reward programs of PIA are also well
known and PIA is far ahead in these terms from its local competitors.
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Airblue
Name: airblue
URL: www.airblue.com
Logo:
Color: Blue
Cargo: (e-Cargo
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Shaheen Air
Strength
Low Cost
Weakness
Small business
Less Geographical coverage
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The product that PIA offers is the transportation routes (both domestic and
international) for passengers (seats) and for cargo (space). PIA is basically an air
travel service provider therefore it fulfills the generic characteristics of services
(intangible, inseparable, variable, perishable and simultaneous) as well as it has
some tangible aspects in terms of newspaper/magazine, meals, in-flight
entertainment system.
4.4.2 Pricing
For the domestic routes cost-plus pricing method is applied whereas for
international routes IATA rules and regulations are applied. PIA considers the
following factors in determining the price for domestic flights; demand level, cost
incurred, competitor‟s price. IATA discourages any discounts on international
routes, tickets show full prices, the only way for an airline to offer discount is by
reducing its share of profit. PIA sets price on international routes by taking into
account competitors price, cost of operation and the type of aircraft used.
4.4.3 Distribution
PIA provides its services through online booking, designated booking office and
travel agents. The first two channels are zero level channels, because there is no
third party is involved between PIA and customer, it is also called direct
marketing channel. In one level channel PIA provides its services through travel
agent. 30 IATA approve agencies deals with PIA, these agencies can also sell
tickets of other airlines, and there commission is 9% for international and 5% for
domestic. There are also district sector agents who deal exclusively in PIA
services; there commission is 12% for international and 5% for domestic flights.
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4.4.4 Communication
PIA promotes its offers mainly through pamphlets, brochure, radio channels and
billboards; promotion through TV channel is minimal.
URL: www.piac.com.pk
Logo:
Slogan:
Great People to Fly With
Come Fly with Us
Ba-Kamal loog Lajawab Service
Color: Green
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Brand elements are those trademark devices that serve to identify and differentiate
the brand. The main ones are brand names, URLs, logos, symbols, characters, slogan,
jingles, packages and signage.
Meaningfulness: Brand elements can take all kind of meaning, with either
descriptive or persuasive content. A very important criteria is that the brand
elements should provide
Pakistan International Airline provides the general information about the product
category as well as some specific information i.e. country of origin, but it does not
provide information about specific benefit by brand name, slogan or logo.
Likability: Criteria for likability is that brand elements should be fun and
interesting, rich in visual and verbal imagery, and aesthetically pleasing.
PIA brand logo has a rich visual imagery that evokes a sense of national connect in
the mind of the customer. Also, the brand name style, and logo are aesthetically very
pleasing.
elements legally and competitively protectable. The fact that the brand is named after
the country‟s name, it is unlikely that the brand name will be copied internationally.
4.5.5 Signs, Slogans, Symbols, URL of PIA: Our research results how that
the signs, slogan, symbol and URL of PIA are highly memorable, and
people are well aware with these. A large majority of the respondents
were able to recognize the slogan and logo of PIA, and associated air
travel with PIA. A majority is aware of the online services PIA is
providing through its URL, and finds online reservation very
convenient. People perceived social and fun loving people as being
PIA‟s customers. It shows the likability of the brand.
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SERVQUAL is based on the proposition that service quality can be measured as the gap between
the service that customers expect and the performance they perceive to have received.
Respondents rate their expectations of service from an excellent organization, and then rate
the performance they perceive they received from a specific organization. Service quality is
calculated as the difference in the two scores where better service quality results in a smaller
gap. SERVQUAL employs a performance approach with five dimensions of customers‟
perceptions of service provider performance.
Reliability
Assurance
Tangibles
Empathy
Responsiveness
The airline industry is inherently unstable and highly competitive, where all
airlines have comparable fares and matching frequent flyer programs. In such a
scenario, service quality is a significant driver of passenger satisfaction, loyalty
and choice of airlines outlines airline service delivery mechanism.
Airlines need to have valid and reliable measures for a better understanding of
the variables likely to impact the perception of service quality being offered by
them. They need to measure not only customer perceptions but also expectations
of airline passengers. If significant variations are found in the perceptions of
airline passengers‟ vis-à-vis service quality on the different flights, changes in
the marketing mix need to be implemented to improve the perception of quality.
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The primary objective of the study was to examine the customer‟s perceptions
and expectations of service quality in domestic airline industry. Specifically the
study attempts to measure the:-
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To do the service quality analysis of air line industry of Pakistan we did a research
by keeping in view five factors. These factors included tangibility, reliability,
responsiveness, assurance and empathy. Under each heading we asked some
questions to the research participants. Firstly the participants were asked to give a
score within the scale of (1-5) to an ideal air travel industry on the basis of
expectations. Then the participants were asked to rate the Pakistan‟s air travel
industry on the basis of their perception within the scale of (1-5). The gap between
the rating in expectations from an excellent air travel industry and the customers‟
perception of Pakistan‟s air travel industry told us where Pakistan‟s air travel
industry is lying currently in the eyes of an air travel service user. Following are the
findings of the research.
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Tangibility -1.68
During the research we have found out that dressing aspect of Pakistan‟s air travel
industry has the lowest gap between the perception and expectations as you can see
in the above table. The score for dressing gap is -1.33. Similarly maximum gap
between the expectations and consumers‟ perception is seen at the area of usage of
latest technologies. Mostly consumers have the perception that Pakistan‟s air travel
industry isn‟t updated with the latest technologies. Visual appeal of facilities has a
gap of -1.83 between the score of expectations and perception of customers.
Promise/Fulfill - 2.00
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Reliability - 1.83
Problem solving of customers from air travel has found the highest gap of -2.05
which is followed by promise fulfillment which had a gap in the score of -2.00.
Responsiveness - 1.78
The gap in the score of helping attitude towards the customers has got the highest
gap of -1.98 followed by busy attitude employees having a gap of -1.88.
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Assurance - 1.53
Building of customer confidence saw the highest gap i.e. -2.13 followed by good
behavior of employees.
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Empathy - 1.52
Understanding specific needs of customers saw the highest gap of -1.85 followed by
employees‟ attitude of having customer interest at their heart all the time.
Advertising
Accountability
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4.7.1 What deeply held perceptions and benefits create the true meaning of
brands and products?
According to our research results, the following deeply held perceptions and benefits
create the true meaning of PIA brand and product.
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i. People only see PIA a best choice for domestic travel, peoples
associations can be strengthened to make them see PIA as one of the
best choice for foreign travel too
ii. The associations can be manipulated to take those in the „indifferent‟
category to „satisfied‟ category.
iii. It‟s very important to note that many people thought PIA is a high
priced low quality airline, and the reason they chose it for domestic
travel is that they feel other domestic airlines are of still lower
quality. PIA must be positioned and improved to increase its quality
image.
iv. Majority of people have association with PIA through word of
mouth, which cannot be directly controlled by the airline. Effective
advertising campaigns must be launched to strengthen a more
maneuverable connect with the customer.
v. PIA must communicate its services other than air travel, like SpeedEx
that many people don‟t associate with PIA
vi. Better image of PIA staff, quality, competence in international travel,
and as a good value for money must be built to increase loyalty.
i. No, rather, the brand has a very clear and sustainable uniqueness, i.e.
people‟s perception of it as the national brand. This uniqueness, along
with the image of competent crew must be further built.
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iii. Another opportunity is to hire young blood, and train them to provide
excellent service and care to break the image of unfriendly personnel.
iv. A great opportunity exists to build the customer base via effective ATL
programs.
V) What potential challenges exist for brand equity
i. Research shows that the major challenge for PIA is to improve its
quality image. People go for it for the domestic travel for the reason
that it is relatively better and safer than existing airline, any good
international airline, if it decides to cater Pakistani customers‟
domestic needs by entering the market, can seriously hurt PIA.
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BRAND EXPLORATORY
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1. When You Hear the word "Air Travel' Which Airline comes in your mind ?
Inference:
PIA has a strong recognition in air travel industry in Pakistan. 51 % people associate
air travel strongly with PIA. It can be inferred that to people of Pakistan PIA means
air travel. However, we see that People also associate other foreign airlines with air
travel industry specially Emirates (35.5 %).
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..
Frequency Percent Valid Percent Cumulative Percent
Inference:
54 % people think that PIA is the most expensive air line in Pakistan. First inference
that can be made from this question is same as the first question, PIA is widely
recognized in air travel market. It could be so because most of the people have never
traveled any other airline than PIA. 22.6 % have opted for Emirates as most
expensive airline in Pakistan. It can be because of the perception of Emirates as
world class airline. PIA has a strong brand recall.
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3. Which airline do you consider is the the most comfortable airline in Pakistan?
Inference:
In comfortable category, PIA also has the highest recognition. 41 % people have
opted for PIA as the most comfortable airline in Pakistan. The reason can same as of
the previous question that PIA has been the premier airline of Pakistan and people
strongly associate PIA with Air travel. Emirates airline the second best competitor
with 25 %.
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Inference:
In safety category PIA also has the strongest perception. It is primarily due to the
fact the PIA has one of the lowest Air accident incidents round the world and in
Pakistan. It is also due to the fact that people have not experienced an other
international airline to compare its safety standards with PIA.
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5. Do you know which airline has following tagline "Great People to Fly with" ?
Inference:
This question truly gauges the brand recognition of PIA and its penetration into the
minds of its target audience. 87 % people identify this tagline as of their national
carrier. PIA outstand its competitors in brand recognition.
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Inference:
As air travel is considered expensive service most of the people under survey sample
have travel 1-2 times a year. If we couple the previous question result with this one
than it is evident that PIA is first choice of almost 50 % people. This shows the brand
recognition of PIA.
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Inference:
In seat reservation category PIA is outstanding from others. This could primarily
because of the fact that till 1990‟s PIA had no competition. The only airline that
catered for national & International air travel. It had given PIA a chance to expand
its distribution network. PIA today has the largest network of Sales & distribution.
Coupled with previous experiences and today‟s online reservation and door to door
ticket delivery PIA has maintained it competitive edge.
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Inference:
PIA has strongly created its point of parity in National & International air travel
categories. Target Audience recognizes PIA strongly in the areas which PIA is
providing services. It may be because of the fact that PIA has not faced any
competition for almost 40 Years in air travel industry.
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Cumulative
Frequency Percent Valid Percent Percent
Inference:
58 % people have selected PIA as the best Airline in Pakistan. If we observe the
result of survey up till now it is evident PIA has above 50 % recognition in all
attributes in its respective category. It indicates the PIA‟s connect with Pakistani
market.
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Inference:
This question gives us very important insights about the brand Perception of PIA.
PIA may have the highest brand recall in its category but brand perception may not
be good. Here 32 % people think PIA as a caring organization. 25 % people think it
as a consistent airline but another 19 % consider it as a under achievers. It may be
because of the deteriorated image of PIA in recent decade as a bureaucratic
organization which must have done better but have failed due to their
mismanagement and lack of vision.
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Inference:
It indicates that half of the people consider it as for elite and half consider it as for everyone.
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Inference:
Majority indicates that most important aspect of PIA is its brand name, with some indicating
it to be qualified and experienced aircrew.
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Inference:
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Inference:
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Inference:
Most of the people are associated with PIA for more than 10 years.
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Inference
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Inference:
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18. If you could not get your seat with PIA, what would you do?
Valid Cumulative
Frequency Percent Percent Percent
Valid go to another 30 100.0 100.0 100.0
airline
Inference:
As indicated in earlier question that brand loyalty towards PIA is low, therefore people opted
to choose another airline, in case PIA’s seat is not available.
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Inference:
People mostly hear about PIA through print media or word of mouth.
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Inference:
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21. Do you know about the online services of PIA through its website
(Ticket Reservation, Cargo booking & Courier
Cumulative
Frequency Percent Valid Percent Percent
Inference
About 77 Percent of sample said that they know about the online services of PIA and the rest 23
percent said that they don’t know about the online services available.
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Cumulative
Frequency Percent Valid Percent Percent
Inference:
A large proportion of our sample is neither satisfied nor dissatisfied with the PIA but the second to
this is satisfied with PIA
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Cumulative
Frequency Percent Valid Percent Percent
Inference:
About 58 percent of the sample said that the PIA is giving low quality but charging high price. This is
the normal perception we got from our data.
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24. What is the perception about people flying with PIA? Tick all where applicable
Cumulative
Frequency Percent Valid Percent Percent
Inference:
A large proportion of our analyzed sample said that the people traveling through PIA are social and
friendly
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Cumulative
Frequency Percent Valid Percent Percent
Inference:
Normally there is a perception that the PIA staff is arrogant and inflexible. From our sample it is also
apparent that most of the people have given the same opinion.
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
26. If you have option to travel internationally through following airlines, which
airline would you prefer?
Cumulative
Frequency Percent Valid Percent Percent
Inference:
Huge portion of our survey sample have agreed upon to travel through Emirates Airline. Its
percentage is 81 percent in our survey.
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
27. Reason_to_travel
Cumulative
Frequency Percent Valid Percent Percent
Inference
In response to our question of option to travel, the people have responded that they prefer that
particular airline because of the Quality and service
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
Cumulative
Frequency Percent Valid Percent Percent
Inference:
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
Cumulative
Frequency Percent Valid Percent Percent
Inference:
84 percent of the sample in our survey is single and then about 10 percent of the sample has
preferred not to tell
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
Cumulative
Frequency Percent Valid Percent Percent
Inference:
Our large portion of survey sample has the education level of graduation.
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
Cumulative
Frequency Percent Valid Percent Percent
Inference:
29 percent of our sample has the monthly household income ranges from Rs.75, 000 – Rs. 100, 000
and then about 25 percent has the monthly household income above Rs. 150, 000.
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BRAND MANAGEMENT [BRAND AUDIT OF PAKISTAN INTERNATIONAL AIRLINES]
Bibliography
- www.google.com
- www.pica.com.pk/
- Previous Reports on PIA
- Service Quality Report for service Marketing
- Brand Research Reports
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