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Overview of the airline industry
Market research segmentation case study
Airline entrepreneurs
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Part B
Task 2
Outcome 2 – Apply market segmentation processes
2. Identify and apply the segmentation bases both markets according to the segmentation variables for each of the following:
a) Geographic
b) Demographic
c) Psychographic
d) Behavioural usage
Segmentation of the markets:
Geographic:-. Geographic segmentation play very important role for the company and people as well because Air New Zealand provides an indication according to different geographic regions like states cities and according to population also. Air New Zealand using their geographic segmentation then targeting which countries customer most using their airlines.
Demographic That is the statistical characteristics of a population as the prices of Air New
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so mostly people would be choose Air New Zealand but according to the differentiated market, they decides to target several market segments and design separate to the customers.
e)Attitudes :- Air New Zealand should provide a quicker check in because this issue is very important because it’s getting more time so Air New Zealand should provide a self-check in but according to the differentiated marketing, to allows airlines to differentiate are the network, and the service on board.
f) Organizational goal: - Air New Zealand take feedback from the customer because it’s most important factor because if customer give bad feedback so company can improve where customers are not satisfied for the service.
6) Establish the following six positioning variables for at least any three of your market segments:
Family market:-
Product attributes: - Air New Zealand should provide special facilities to the family because they travel with kids and Air New Zealand should provide a special games and foods to the kids because they don’t cry during the
After baseline studies indicated that Frontier Airlines was unrecognizable in its own core business area, they decided a new image was in order. Frontier released their new ad campaign “A Whole New Animal,” that built on their solid old brand, but conveyed their new goal – that they are affordable, flexible, accommodating, and comfortable. Frontier Airlines launched their new rebranding campaign calling itself "a whole different animal." The campaign uses the animals that are featured on the tails of the airline's airplanes, such as rabbits and foxes. By catching customer’s attention with talking animals and their tag line, Frontier Airlines is now a very recognizable airline.
The recent economic downturn has served to demonstrate the vulnerability of Westjet global economy and in particular, the tenuous financial thread by which a considerable number of airlines around the world operate. In Canada, there continues to be an uneven playing field that serves to give Canadian operators a disadvantage. This has resulted in a considerable increase in the number of Canadian passengers who cross the Canada/U.S. border to travel from the U.S. to their destination. This will continue to have a detrimental impact not only on Canadian airlines, but on the economy as a whole through the loss of jobs as passengers take their business out of the country. Westjet continue to call on and work with the federal government to remove these impediments to competition so that Canadians have a competitive choice and Canadian airlines can continue to thrive.
This is a representation that shows competitive markets of airlines. They differ in many different ways and they have been placed on the framework to contrast and compare each of the companies 4P’s : Product by Price by Promotion by Place as compared to Delta
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Vivid, bold words and images draw in the curious readers who are searching for a company to take them on their next adventure. But is this the only thing that draws them in? When searching for an airline, people like to research the best deal. They want to know if there is a special membership they could obtain if they have flown with the company multiple times, or if the airline offers them a discount fare. They also might be curious if the airline flies internationally to exotic locales. These are the things that draw in flyers, that persuade them to choose one company over another, and which companies like Southwest and United are specifically aware of resulting in effective campaigns that convince potential flyers to purchase with them.
Their attitudes are changing according to their preferences as they are able to compare different model of transport more easily. They are more easily able to choose between airlines as their preferences inform their choices, leading passengers to demand low cost from airlines. Competition in the market has given customers choices. This factor does not have negative impact on Ryanair’s as their dominance in the market has been boosted by been keenly aware of their customers’ attitudes amidst the increasing competition and recovering EU economy. Ryanair has made a decision to instil in customers the confidence that despite the economic performance over recent years it can continue to provide low cost fares reinforcing their commitment to provide the cheapest
" http://www.bea.aero.com/. BEA, 16 Jan. 2002. Web. The Web. The Web.
Jetstar Airlines offers a number of domestic flights to travel inside New Zealand with very cheap fares. All the tickets are to be booked online. Jetstar is providing very low cost air tickets compared to Air New Zealand. Air New Zealand is a full cost airline having domestic and international flights throughout New Zealand and so many other countries in the world. When comparing the ticket rates Jetstar is offering a domestic air ticket with almost half of the price of ticket offered by Air New Zealand. The cost of air tickets vary according to season, weekdays and weekends. In weekends and some seasons the domestic and international airfares of both airlines becomes too high. Air New Zealand is having at least eight domestic services each day. The Jetstar Airlines may have at most four domestic services.
We will be analysing Jet Airways business internationally looking its external environment analysis, market strategies in Australia. Qantas has a two brand strategy, Qantas is the premium airline targeting the time-conscious business market while Jetstar is low fares airline which targets most cost conscious holiday market.
In order to fulfil the customers’ needs, the ultimate concern for Airlines Corporation is the service provided. The contributing factor for the latter is...
The Interest given by Singapore airlines to its Customer is mostly emphasizes by the ‘Singapore Girl’ which has earned the airline many industry and travel awards which includes the Conde Naste Travelers’ ‘Best Global Airline’ award for 21 consecutive years, Travel and Le...
Market segmentation hopes to answer the question of which customers we as Audi will serve by dividing and analysing large heterogeneous markets into smaller segments that each have distinct needs, characteristics or behaviours which can be reached more efficiently with products and services that match those unique needs. We will take a look at the major geographic, demographic, psychographic and behavioural variables to help answer this question.
As the airplane levels off at it’s optimal cruising altitude of 38,000 feet, you pull out the in-flight magazine, whose cover is filled with images of fame and happiness, from the seat-back pocket. Through all airlines providing the same service (flights), branding is the key to achieving a competitive advantage. The in-flight magazine becomes a vital product through which airlines can promote their brand, sell products and build relationships with their passengers. The magazine offers advertisers a highly desirable and attentive audience given that both on-board matters and airport transfer information require reference to the magazine. The reach of these magazines is also broad, which makes them very appealing for advertisers. For example, Qantas carries more than 13 million passengers annually, and each month 65,000 magazines are printed (Geels). In-flight magazines, however ideologically benign or innocent they may seem, prove to be powerful by illustrating the values to which a traveler should adhere. Advertisements mirror society and the people they advertise to, therefore, they convey meanings and messages about what is normal social behavior. Flying, although less expensive now than in the past, is reserved for the better off in society; those who have the freedom and means to travel by plane. Airline magazine advertisements are subtle ways of sorting passengers into those who are socially and culturally acceptable airline travelers and those who are not.
Diana Coza (2014) also outlined a number of challenges facing the airline industry in her article posted on Travel Technology and Solutions (tts.com). Some of these include: