Tiger at war on the Australian market

Tiger Airways today announced $9.95 one-way flights from Adelaide to Melbourne as part of their market-penetration strategy.

There has been much speculation of Tiger Airways’ introduction strategies into the Australian market but price-wars are nothing new in the aviation industry.

If I recall correctly Virgin Blue did it. Jetstar did it. What has been the product of this serious undercutting? Fierce competition!

To clarify for those spectators that sit there and wonder how this sort of behaviour is sustainable, I shall go over penetration-pricing.

Penetration-pricing means setting a low entry price to gain market-share and then increasing to a level that is realistic and within what the market is willing to pay. I see this as what Tiger Airways is doing.

I see them as wanting to gain market-share by creating an irresistible buzz which will ultimately lead to brand-loyalty.

They’re making their product accessible so people can see ‘what they’ve got’ and will hopefully choose them again when it comes to booking low-cost airfares.

H’s Place

 Last night I went to my good friend Holly’s 21st party. Here are a couple of pics taken at her place.

1st: The view from my tent this morning.

2nd: The view from the back of their house.

My views on the Pride March

I shall clarify my reasons as to not being interested in the Pride March over the following paragraphs.

People (not just you Luke, a few) imply that I come across as somewhat closed-minded for not attending the Pride March, having never been. I have concluded that it is not my ‘thing’ and have reached this decision without experiencing it first-hand: yes.

However, I put this down to their (Feast’s) communication tools. These tools are used to attract consumers to their product – in this instance, attendees to their event. The way the attempts have affected me is to see the march as being a small-town Mardi Gras. The Mardi Gras comes across as a festival of sex; sexual innuendoes; bears in leather; twinks in hot-pants; dykes on bikes: stereotypes.

I’m not particularly closed to these types of people. They can do as they please. That’s entirely their right. I just feel that when used to create awareness of the gay community it’s entirely counter-productive. The whole spectacle puts the community in the light of being about the aforementioned stereotypes.

I understand the meaning of the march and Feast as a whole. We’ve come far: yes. We deserve to be treated as equals: yes.

Overall, I think my views here reflect the power of promotion. Here is an example:

If a restaurant presents itself a certain way (serving Italian food), one sets expectations (to consume Italian food) and will only be satisfied if those expectations are met or exceeded (they actually get Italian food). After being effected by the communications tools that Feast have used for the march I expect it to be about the stereotype I have explained. And sure, we shouldn’t judge a book by its cover but a lot of my decision-making-process has become moot as my mind has been made up for me, so to speak.

Cibo on Pirie

Cibo Espresso have opened a new branch, number 97 Pirie Street I believe. I attempted to go there at my lunch break but there weren’t open. They are spreading even more. Would they just open up in Sydney/Melbourne already.

The Adelaide tram extension: Very good

Initially I was a critic but now my views have changed of the Adelaide tram extension. At first, I wondered (1) would it be feasible or just a waste of space and public money; and (2) do we really need an extended tram service when the buses are doing just fine?

Well, after catching the tram from the Rundle Mall stop to Greenhill Road to meet mum after work tonight, my views have changed.

Firstly, the disruption to traffic is absolutely minimal. Cars stick to their lane and the tram its own. If uninitiated drivers are confused by the roads and rules, well they shouldn’t be behind the wheel. It’s all fairly simple on the roads.

Secondly, the carriages are quite ample I feel. Apparently, there has been a lot of whinging in the media about the trams getting chock-a-block and reduced to standing room only. So? Passengers are there to commute not sit back and relax. It’s not the Ghan and shouldn’t be positioned to be. When I got on it today it was reasonably full: I stood but was comfortable.

Lastly, just think of transport like this: how quickly can a bus load 20 passengers? How quickly can a tram or train load 20 passengers? Which is more efficient and effective in a speed/load sense? The latter two, exactly. The old BeeLine bus would go from stop-to-stop; take 1-3 minutes to load its passengers through its two entry-points; would need to pull back out into the traffic… The tram (and trains) pulls up at a stop; passengers board autonomously; it’s loaded and off again in less than a minute. The tram does have to stop at lights but big deal.

Overall, I enjoyed the experience. I got from Rundle Street to my destination within 5-7 minutes and didn’t mind standing up in the well air conditioned carriage.

As much as this will ultimately be one of Rann’s trophies I think he’s done something that’s useful and sustainable. It does connect the beach ‘burbs and CBD with the West, education district of the city which is important considering the impending growth of that sector in Adelaide.