Overview of Lufthansa Marketing

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In his book, Air Transportation, Wensveen explains each of the four Ps of marketing—Price, Promote, Product and Place—and how they are used to make up what is known as the marketing mix, which “consists of the types and amounts of controllable marketing-decision variables that a company uses over a particular time period” (Wensveen, 2011). In 2012, Lufthansa implemented a marketing strategy called SCORE (an acronym for synergies, costs, organization, revenue and execution) with a goal of increasing Lufthansa Group’s operating result up to €1.5 billion by 2015 (Lufthansa Group, 2013). This paper will explore how Lufthansa applies each of the four Ps in its own business practice, SCORE being its main instrument of success.

With the first of the Ps, price, it is commonly known in the airline industry that ticket prices are volatile primarily because of the fluctuating fuel prices. Fuel costs make up a large portion of Lufthansa’s overall operating expense at 23% (Lufthansa Group, 2013). Another factor to consider for determining the price of a ticket is the time of year in which the available seats are to be sold, namely during the holidays when the demand for travel is high. To take advantage of simple supply and demand effects on the market around the holidays, Lufthansa specifically caters to the higher holiday demands by advertising for holiday customers.

One way Lufthansa makes use of the next P, promote, is through the use of Lufthansaholidays.com, a one-stop shop for anyone wishing to put together a vacation plan (Lufthansa, 2013). The website offers deals that include air fare, hotels, and rental cars when arriving at your vacation destination. Lufthansa even has promotions that are specific to the prospective pas...

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Lufthansa Group. (2013, November 16). Christmas Market Special. Retrieved from Lufthansa: http://www.lufthansa.com/ca/en/christmas-market-special

Lufthansa Group. (2013, November 15). Investor Relations. Retrieved from Lufthansa Group: http://investor-relations.lufthansagroup.com/fileadmin/downloads/en/financial-reports/annual-reports/LH-AR-2012-e.pdf

Lufthansa Group. (2013, November 16). The four-liter aircraft. Retrieved from Lufthansa Group: http://www.lufthansagroup.com/en/press/news-releases/singleview/archive/2013/january/14/article/2293.html

Netessine, S., & Shumsky , R. (2013, November 15). Informs Transactions on Education. Retrieved from Introduction to the Theory and Practice of Yield Management: http://archive.ite.journal.informs.org/Vol3No1/NetessineShumsky/

Wensveen, J. G. (2011). Air Transportation. Surrey: Ashgate Publishing Limited.

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