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Thursday, February 16, 2006

TEMPTATIONS CLINCHES HIGHLY.

TEMPTATIONS CLINCHES HIGHLY COMMENDED FRONTIER AWARD FOR SECOND.

Kuala Lumpur, 10 February 2006: Temptations, Malaysia Airlines' Inflight
Shopping arm, was awarded for the second year running the Highly Commended
Frontier Award for Innovation. This award marked the end of a highly
successful year where Temptations posted record profits in its inflight
sales in excess of RM5 million in the last nine months ending December 2005
against a turnover of RM32 million.

Highly regarded as the Oscars of the travel retail industry, the
presentation of the Frontier Award is given in recognition of Temptations'
overall business performance such as innovation, profitability, creative
execution, promotions and operations. The award was unveiled at a leading
hotel here by Malaysia Airlines Managing Director, Mr. Idris Jala and
Commercial Director, Dato' Rashid Khan in the presence of Assistant General
Manager Marketing Support, YM Raja Nordiana Zainal Shah, local media and
Temptations internal and external business partners.

Since undergoing an extensive rebranding exercise in 2003, Temptations by
Malaysia Airlines has made a name for itself as an inflight retailer and as
a trail blazer in inflight shopping.

In reviewing the year 2005, two key factors were attributed to its sterling
success. First, the focus to acquire the right mix including Temptations
branded items which appeals to a global customer profile. Second, the
multi-ethnic creative treatment of the catalogue design.

Out of 19 product categories, 13 categories showed double-digit growth in
sales from the previous year. With prices five to ten percent cheaper than
on-the-ground retail outlets, fragrances contributed the largest share of
revenue with cosmetics a close second. Cosmetics sales experienced a 32%
growth while fragrance sales saw a growth of 20% compared to the previous
year. Skin care products recorded an increase of 35%.

"Our business strategy incorporates an understanding of the behavioural,
cultural and spending patterns of our global passengers. We took bold steps
that were refreshing and different from what other airlines offer on board
the aircraft.

"Improved sales were also achieved by working closely with our business
partners ranging from suppliers to our cabin crew who are given cash
incentives and creating cross-selling opportunities among Malaysia
Airlines' auxiliary brands such as Enrich, Golden Holidays and GRADS. To
enhance passengers' inflight shopping experience for the very first time,
the World of Temptations contest was developed to thank them for their
wonderful support and to add an exciting element when shopping on board
Malaysia Airlines flights," explained Raja Nordiana.

Having made its mark in 2005 for its multi ethnic and cross cultural
inflight shopping catalogues, at the event, the new theme for 2006 entitled
Fantasy was also launched. From cover to cover, the new catalogue exuded a
contemporary lifestyle magazine appeal.

Temptations is the inflight shopping catalogue managed by Golden Boutique
Sdn Bhd, a subsidiary of Malaysia Airlines.

END

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