Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Target corporation market strategies
Positive and negative effects of competition
Review of literature on brand image
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Target corporation market strategies
Consumers are all quite demanding when it comes to products. We all want the biggest, best, newest items and services at the cheapest possible price. Hoping the products and services we are purchasing are at a high quality standard. Consumers have high standards for all companies that offer a vast variety of services and goods. But we all know that not every company can have it all. For this Marketing Management Framework, the companies being compared are: Delta Airlines, Southwest Airlines, JetBlue, United Airlines, and American Airlines (Iacobucci, 2013). Companies start by segmenting their customers by demographics, geographics, behaviors, and attitudes (Iacobucci, 2013). Once the company decides who their segment group is, they can target …show more content…
They can tell if they are distributed wide or exclusively. Wide distribution is a larger, broader market and exclusive is a smaller, particular market (Iacobucci, 2013). JetBlue and Southwest Airlines have an exclusive market, as they do not fly internationally (JetBlue, 2015 & SouthWest, 2015). Compared with Delta Airlines, American Airlines, and United Airlines, which all fly to many different countries internationally (Delta, 2015, American, 2015, &United, 2015). JetBlue is not only exclusive in travel or destinations, but in multiple ways from standard airlines. They are a newer airline becoming a company in 2002. They offer first checked in baggage free of charge, shut-eye services, Sirius XM radio, Birchbox amenity kit, and much more (JetBlue, 2015). Delta is JetBlue’s number one competitor because their most popular routes conflict with one another. Many of Delta’s recent changes in their marketing and aircraft in 2015 were mimicking JetBlue’s company (Delta, 2015 & JetBlue, 2015). JetBlue also stands out in pricing. They also do trip packages at discounts for travelers. Giving travelers a round trip plane ticket and hotel stay for a trip all in the same ticket and transaction for the same price as competitors plane tickets alone (JetBlue, …show more content…
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
The first step is to (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way (Consumer Psychologist, n.d.). •
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
Superheroes and villains are not commonly associated with airlines, but in the article “A Tale of Two Airlines” by Christopher Elliot, it is put into a different perspective. The two airlines in question are Spirit and Southwest. Although both have some similarities, they both have considerably different views on how to treat customers. Southwest practices treating customers with respect, while fares may be a little higher. Spirit’s beliefs are to treat customers “like cargo” with lower fares. With their friendly attendants and better overall customer interaction, this appoints Southwest as the hero, making Spirit our villain. Elliot makes his point by exclaiming the “heroes” should be rewarded with a higher multitude of passengers and the “villains” should not be granted this satisfaction.
of price versus service in the airline industry as a whole, as well as, the
The airline industry not only transports passengers across the country and world but it also moves cargo from location to location. The largest segment for the airlines is general commercial passengers and business travelers. In 2004, there were 15 major airlines with 12 of those being mainly passenger carriers, the remaining three being cargo carriers. In addition to the large airlines (Delta, United, American, Southwest, Northwest), there are numerous low-cost regional carriers that have tapped into the larger carriers’ customer base. These smaller companies generally fly from smaller airports and serve a smaller amount of destination cities. Calling them a no-frills air carrier would not be far from the truth. Their goal is to move customers f...
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
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).
Features that draw customers in include assigned seating (contrary to its competitor, Southwest Airlines), leather seats, more leg room, and superior on-board service. Furthermore, JetBlue is one of only a few airlines that offers each passenger free Direct TV and XM satellite radio entertainment. Finally, with regard to customer service, JetBlue focuses intently on attracting and motivating a talented workforce. The company gives each employee a sense of ownership in the operations. This value and respect bestowed on each employee translates into a motivated, productive workforce that focuses on customer satisfaction and exceeds consumer expectations.
The low cost and no frills strategy is make travel affordable at low cost. The company only operates one type of aircraft which is Boeing 737 to help maintenance cost low. Southwest was the first airline to use E-ticketing in this way customer can reserve spot and buy ticket on their web and allow less expense in printing tickets. Medium measured airports which allowed them to produce better time performance and less fuel costs so plane do not have to wait in the line at the runway. The core value of the company of “LUV and fun” makes the company great place to work that gives customer with a great experience.
Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
Other airlines approached the economic crisis by limiting their service or letting go of employees, whereas Southwest tackled the problem by offering workers secured positions for lower wages. Though the circumstances were not ideal, overall employees responded positively to the option of keeping their jobs. They also promote internal marketing strategies within the workplace. Southwest has a clear vision which employees strive to be a part of. In fact, part of their vision is in the best interest of their employees, as a common mantra within the company is, “customers come second… and still get great service.” They offer a casual work environment. This approach not only benefits the employees comfort, but also coincides with the company’s easy-going brand image it wishes to portray. Employees are at ease in at their job and overall enjoy what they do. Southwest also makes a point to attract the desirable candidates for their positions. They emphasize teamwork. Employees are encouraged to help each other out to strive toward a common goal. Employees are often rewarded for their achievements as well. As seen in exhibit 1, these strategies to keep employee satisfaction high, are factors that keep loyal employees within the company.5 Southwest makes every attempt to keep employees content as they believe happy employees lead to happy customers. Southwest has
When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable ...
Tom, Y. (2009). The perennial crisis of the airline industry: Deregulation and innovation. (Order No. 3351230, The Claremont Graduate University). ProQuest Dissertations and Theses, , 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364. (304861508).
Once a business has successfully completed segmentation based on the market into various groups the targets will be chosen. As we all know no one unique strategy will be able to appeal to all consumer segments therefore being able to come up with different strategies for specific targets are a vital aspect of marketing.