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Market segmentation for budget airlines
Differences in cultural
Differences in cultural
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Marketing:
It is managing profitable customers relationships and to create value for customers and to capture value from customers in return.
(Chapter 1, page 2, first paragraph)
Part B:
As the years pass, united airlines have to change some decisions that affect them to provide the best demands for the customers. The company used Market Segmentations which is the process of dividing a market into distinct groups of buyers with different needs or behaviors that might require separate products or marketing programs. These changes are in the demographic, cultural and economic environments.
First of all the demographic environment, it is one of the most important environments that united airlines has its regards because each different types of people has their demands, such as the age range for each group of people for example: the Adults (from 21 to 40) need entertainment on the airlines to enjoy their time spent and for their satisfaction till they arrive their destinations. Also, the Old parents (from 45 to 60) need to be comfortable and relaxed till they reach their destinations. This situation means that the united airlines have to develop their marketing strategy to the next level to ensure all their demands are applied.
Second
So to prevent this kind of weakness is by always try to help the customers with their needs and
Southwest Airlines is an Equal Opportunity Employer, therefore, has diversity in their employees from all over the world. They have employees from different cultures and experiences. Southwest Airlines invites military personell, active and retired veterans to apply. They also offer positions to qualified disabled individuals and disabled veterans. According to Forbes, “The icing on the cake is an elaborate recognition program for all employees who are recognized by customers. They are lauded in newsletter features, on the intranet, by the CEO in videos that are played at staff meetings, and dinners honoring them. Voluntary turnover is only two percent, and many of Southwest’s original employees are still there. The company receives 43,000 commendations a year, from both inside and outside the company.”
The code of conduct for United Airlines starts out with a brief purpose that is not unlike many other large companies. The document is clear that the purpose is to help everyone covered by the document
If the short haul passenger was the backbone of Southwest Airlines success, then their 737s were the lifelines that supported it. By choosing the 737 as the airplane for all of Southwest's flights, the company saved time and resources in training its employees. The crew could be easily substituted for one another due to the extensive training on the 737. Low costs and, therefore, low fares are an enormous competitive advantage, when combined with their high-quality and loyal workforce. A very unique culture was found at Southwest Airlines among all of its employees.
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
Determining the marketing strategy for a massive airline, like United Airlines, is fairly difficult and extremely complex. Why? Because each city, season, route, and time of day will have some minor to major difference in how the airline presents itself. The difficulty in marketing and advertising for an airline is harder than other industries because each airline is selling thousands of different products. At first glance, United is selling flights, and that seems to encompass one product. However, selling a flight from Denver to Tokyo on a Monday is extremely different than selling a flight from Cleveland to Cincinnati on a Saturday night. The people flying that route, the cost, the airplane flow, the services provided, and the frequency/length of the flights all vary greatly from route to route, and the marketing strategies will fall in line with those difference. Although it would be impossible to determine an exact strategies, we will attempt to determine what United attempts to focus on, where they attempt to focus, and what their goals, both long and short ...
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).
The airline industry has been full of competition for years. It takes determination, preparation, knowledge, and recourses to start an airline company, and that is just what happened forty-five years ago in Dallas Texas. Southwest airlines is an very successful airline company serving around 100 million customers annually (Southwest Corporate Fact Sheet). Many things stick out about Southwest such as their satellite-based WIFI and free luggage. These accommodations appeal to the customers. The company described its mission as “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit” (About Southwest). But from a business standpoint it is necessary to look into
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements to the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion. In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
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...
Your first decision when running your airline was to choose the sector it operated in — discount, normal or luxury. Therefore, you had to segment the market. How did you do this? As the simulation progressed, did you change your market segmentation? Why? In your judgement, did you segment the market successfully? Why? If not, why not?
On 28 April 1988, Aloha Airlines Flight 243, a Boeing 747 based out of Honolulu International Airport, Hawaii, began operations on what was scheduled for six inter-island flights. The First Officer checked in with Aloha Airlines Flight Operations about 5:00am followed by the Captain shortly after. The aircraft log was signed off and released for flight with no open write-ups. They both completed pre-departure duties and proceeded to the aircraft. All pre-flight preparations were performed in the crew compartment and a visual external aircraft inspection was performed. The first officer was pleased with the aircraft after the walk-around and deemed it "Ready for flight".
Flight fee is one of the biggest nightmares of the passenger. In this regard, such an initiative is a win-win situation for the Asiana airlines. The establishment of extensive cabin retrofits is also a great improvement to the customer service delivery. The airline also boosts customer experience in a bid to achieve the airline’s sustainability through the provision of lie-flat seats. The seats boost comfort for the passengers aboard; hence, reduction of exhaustion. According to Asian Development Bank (2009), the airline provides the passengers with a sizeable monitor, especially for the business class passengers. The practical productivity of team relies on upon its hypothetical planning, information of an aeronautical building, and tenets of its operation, including exceptional circumstances, and propensities for utilization of this learning, furthermore on order and determination of pilot-in-charge of aircraft and group individuals. The administration productivity air movement, the associations of flight action and a wide range of upkeep of aircraft in the greatest degree is controlled by the proficiency of the action association in the modern undertakings, cognizance of initiators, and the moral obligation of leaders of all positions for action concerning security control of
There are other ways in which airlines customers are segmented. The airline services are divid...
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Since 1972, when Singapore Airlines (SIA) operated separately from the former Malaysia Airlines Limited, SIA’s management had successfully differentiated the airline from its competitors due to its top quality service. Over the years, larger capacity aircrafts were introduced, offering faster and more comfortable flights with the extension of services to many destinations. Subsequently, Singapore Airlines commenced operations from the new Terminal 2 at Singapore Changi Airport on November 1990. Early 2004, Singapore Airlines set a record for the world’s longest non-stop commercial flight from Singapore to Los Angeles. Once again, Singapore Airlines created history by being the first carrier to operate an all-Business Class