Topic - Marketing Principles &Practice
This is an opportunity to examine how an organisation applies a variety of marketing concepts on how they inform the organisation's marketing strategies. Also, students will be able to examine relationships of the marketing functions to other functional areas in an organisation.
Task: Report and a Poster (3,000 words)
Read the given case study and analyse how the overall marketing strategy enables British Airways to achieve its goals effectively.
Write a report, follow the structure and guidance outlined below:
Successful Marketing For Survival: The Airline Industry
During instability in 1970s and the early part of the 1980s, marketing was less important among airline companies across the globe due to imposition of heavy regulations and the industry operating in a sellers' market around the world. In particular, safeguard provided by the government ownership and regulation, airlines were safe from the serious competitive effects of the marketplace. For example, price competition was non-existent, promotional efforts were limited, product service quality was uneven and less effort has been made to develop efficient distribution system through “hub and spoke” networks”. In a market which was dominated by the airline themselves, the objective was to offer flight service from one destination to another, people will take them. In this approach, consumer-oriented market was not in existence and they were using the sell – oriented approach.
British Airways was almost recognised as the “Bloody Awful”. In recent years, there have been many changes in the international airline's industry, which have been profound effects on the growth of this sector of the economy in various countries of the world. Due to technological, demographic and socio-economic changes have led the way to some philosophical transformations of the industry and the way perform business nationally as well as internationally. In this process of restructuring, both national as well as private airlines, had to change their policies and plans accordingly. The main essence of marketing is to give prior importance to the need and expectation of the consumer and establishing brand value in the competitive market.
The airline industry is continuously making changes in their business environment. The airline industry is in a stage of rapid transform and geared changes towards the improvement of both airport and inflight service.
Structure of The Report
- Introduction (approx. 200 words)
Introduce the airline industry, the airline and growing significance of marketing in the British Airways industry.
- Main Body (approx. 2000 words)
a) Examine key marketing concepts and terminology applicable to British Airways (e.g.: Product strategy, Branding, Promotional strategy)
b) Analyse the marketing strategies and programs that helped British Airways to achieve their objectives. How such objectives can be achieved in ethical manner?
c) Identify two of the following marketing concepts and principles of British airways: 7Ps, STP and marketing research.
- Provide a poster to examine the relationship of the marketing functions to other functional areas in organisation (approx. 550 words)
In this poster, identify and discuss the cross functional relationship of marketing and other department in British Airways.
- Conclusions and suggestions (approx. 200 words)
a) Summarise what you have covered about the organisation.
b) In your suggestions, recommend how your selected organisation can improve its effectiveness in the application of the marketing concept, strategies, and programmes.
- Reference List
Airline industry provides air transport service by helicopter or air planes to the paying passenger and freight through regular route. UK Group is the largest airline on the basis of revenue, passenger’s carried and fleet size. Air operating certificate or licence is issued by government body to recognised airline companies. These companies form partnerships or alliance to provide aircraft services to its customer. As the airline industry is growing at rapid pace so the marketing strategies of airline industries should be innovative in order to buzz and attract customers. As the competition is increasing the company are using various marketing tools such as social media, non-traditional advertising, and loyalty program. It increases the brand image of the company thus indirectly increase the loyalty of customer. In order to be profitable and to achieve objective of organisation the company has to take various decision and action to implement marketing successfully. On the basis of passenger carried and fleet size British Airway is the second largest airline in United Kingdom. This report discuss about British Airways marketing concept, strategies and principles that help in achievement of business objectives. Also, this report discusses about cross functional relationship of marketing and other department in British Airways.
A) Marketing Concept and Terminology Applicable For British Airlines
The Marketing concept is a strategy that implement by a company to maximize the profit, fulfil the customer need, enhance the level of sales to survive the competition. There are some marketing concepts that British Airways apply in their organization. These concepts are Product strategy, Branding and Promotional strategy.
Product and services is very important factors in an organization. This is the vision of the company to make a product a success in the industry. Product strategy helps to mapping up the right design to build a product with innovation at low cost by maintain the quality of that product\service (Ramli, 2016). Basically the product strategy refers that customer preferring the product with good quality, performance, affordable price, innovation feature.
British Airways includes in their product strategy numerous destinations across the world, work speedily, support customers, and satisfy customers need services, quality of flight. British Airways apply this strategy they focus on market demand and plan. They provide quality services to their customers in reasonable price, with including entertainment screen, beds, cabin, extra space, meal course etc. that makes it more luxurious, to make the customer's journey happy. They work for customer's better flight experience.
Branding is a marketing concept used by the company to create an image for company or product and services in customer's mind. Effective brand strategy differentiate the company from competitors, the company's brand define about the company (Shinnar, 2016). The brand includes company's Logo, website, packaging, and promotional material. Branding is important for business to increase the value of company. It increases the investment opportunity because the company is firmly established in market, create trust in customers, supports advertising. Branding demonstrated by the consumers experience that the company attempts to create.
British Airways create an image of being popular, reliable, luxurious and better flights experience for the customers. British Airways has been voted as number one British brand, in consumer and business super brand list for their world-class services. British Airlines get number one position in travel – airlines in consumer survey which has enhanced it branding. They provide better services comparable to competitive company. It attracts investors for investment. Super brand consist quality, reliability and distinction, British Airways brand's current profile leads marketing activities and new service development, provide comfortable journey to their customers and surpass the expectation of their consumers, it makes them popular in their customers. In consumer super brand British airways holds fifth position.
Promotion is an attempt by the company to inform, reminds and influences the customers with their product and services. Company has wide goals, so they need to apply the promotional strategy. The Promotional Strategy is a marketing concept to grow the business. It is the mode to influencing the consumer, there are various methods to promoting the company for the marketing purpose, regarding the company's product and services. Strong promotional strategy helps the company to grow in positive manner (Rakib, 2018). This strategy is an idea to promote company's brand, logo, also create awareness, make customers to try company's product, provides information about product and services, helps to find the customer. Company promote with the traditional advertising, sales promotion, social media, e-commerce, websites.
British Airways uses promotional strategy to promote and create awareness in customers. British airways examine the market and determine their competitors, British airways launch a social media campaign to integrate and promote their website, provides promotional updates and customer services they create entertaining flight system as play current TV shows, music, games or film that can give a company customer advantage, as well as they advertise their airport sights, increase their existing customers experience of flights they work with brand ambassadors to increase their brand awareness in consumer, innovate and improve ideas to providing service, also provides discount on occasions to increase sales of tickets. They provide more luxurious and comfortable services in less cost to its customers. Therefore, British Airways is popular in their customer across UK and the world.
B) Marketing Strategies and Programs That Helped British Airways Achieve Objectives
British Airways is always known for its different marketing strategies and unique campaigns to market its products and services, attracting new customers. It connects people all over the world, people with different background, stories. Some of most appreciated advertisement and marketing programs of British Airways are described below.
- Reinventing British Airways Digital Experience: This is the marketing strategy, where objective was to eliminate customer pain-points before, during and after journey smoothly. This has helped in better problem identification and speedy resolution of it.
- Fuelled by Love: In this marketing campaign, British Airways came up with a story to target Indian market where a UK based cabin crew member develops a bond with one of her customers during her trip to India (COUASME and GURGEY, 2016). This video acclaimed positive response, which shows how one can find love and affection in India.
- Technology: In this marketing strategy, British Airways aircrafts to be fitted with full streaming, high speed Wi-Fi, using the latest technology customer would be able to use internet after 10 minutes of take-off. It is also using biometric technology to speed-up the boarding and arrival processes in few cities with long-haul flights boarded in half the usual time (Taneja, 2016). During the journey, passengers can make changes in bookings, can do business work which adds productivity advantage to passengers.
- Lookup Campaign: Many a times people look up and see planes and think where it is going so British Airways came up with an idea to combine this curiosity with the technology by creating amazing digital billboard which gives live time info about the flight that flew above. It is mostly targeting people which are at growing stage of life like adults and which want to experience and know about everything. This is an effort to support kid’s curiosity and questioning mind.
- British Airways Safety Video: This film was designed to help customers absorb safety messages while fund-raising for 'flying start' global charity partnership with comic relief. This story sends message to donate. This video is being revolving and being appreciated, which is raising the consumer awareness and brand value for the company.
- The Unforgettable Sale: It focuses in the concept of 'What if?’ memories and unforgettable trips. In this, airline will offer holiday advice to its customers with emoji’s and holiday destination based in personality and mood (Iordanova, 2018). It offers numerous offers to its customers which makes journey more memorable. In this way it is grabbing customers and enhancing experience which is one of its objective.
- Championing Animal Welfare and Conservation: It is most unique marketing strategy of British Airlines has developed, by partnering with the Born Free Foundation to support animal welfare. It is helping customers make an informed decision where hotels which are known for keeping captive wild animals by indicating it in its product description.
- Helping Communities at The Time of Crisis: British Airways often work with Disaster Emergency Committee at the time of crisis in order to ensure vital relief reaches the needed ones as quickly as possible (Opreana and Vinerean, 2015). This shows how the company is taking an active part in crisis, which contributes to its CSR activity and enhances and publishes a positive image of itself.
British Airways have achieved its objectives ethical as it is the first UK airline to offset carbon emission on all its flights from next year by investing in carbon reduction projects. Airline is trying to connect to with people emotionally by valuing people's emotions. British Airways have worked ethically in order to attain its objectives. It has putted customer well-being on the top priority, it is targeting each level of people so that everyone who dreams of it, can fulfil the dreams. British Airways works on continuous customer analysis, so that it can come up with new objectives to attract new customers. Every issue to the society is taken as an objective and opportunity to bring some changes.
C) Marketing Concepts and Principles Used by British Airways
British Airways is the leading airliner in the world not only because of its quality and service but also because of its strategic marketing which gives it a competitive advantage over others competitors. To know more about its marketing strategies, detailed analysis of its marketing concepts and principles are done below.
7Ps of Marketing Mix
7Ps is a marketing strategy framework that helps in evaluating the business and how each element of the mix makes a business successful. So, to widen the knowledge 7Ps of the marketing mix is done on British Airways and how it has contributed to its success.
- Product: It refers to what you are selling and how it will benefit your customer. British Airways offers valuable and excellent products and services to satisfy its customers’ needs and wants. It offers affordable prices for flight tickets to any destination (Lancaster and Massingham, 2017). They provide exclusive lounges, where passengers can spend quality time, eat and relax.
- Price: It refers to the pricing strategy of your product and services and how it will impact your customer. The price of the British airways is decided keeping in mind every class of consumers so that everyone can avail its services. It has implemented different pricing strategy as per the different customer needs.
- Place: It refers to where your product will to be made available and how your customers will access it. British Airways has used this tool wisely as it flies to more than 400 destinations in the worldwide (West, Ford and Ibrahim, 2015). It keeps on merging with significant destinations and it has its own warehouse for servicing the aircrafts.
- Promotion: It refers to what promotional activities can be used to make your customers aware about your products and services. To be in touch with its customers, British Airlines has created mobile application for its special customers, for promoting its services. It also provides special offers on different occasions like Christmas gift vouchers for consumers to travel at discounted prices.
- Physical evidence: It refers to everything that customers are interacting with respect to business. The services and quality provided by British Airways make a huge distinction from its competitors in terms of seat comfort, space, interiors, innovation etc. British Airways has an effective physical evidences which can be notified by their planes, crew, Logo, various counters at Airports across the world.
- People: It refers to the employees or staffs who is working for your business. British Airways have top level of training for its staff from crew to engineers. It always keeps in mind its slogan “To fly. To serve.Today.Tomorrow.” with high aim.
- Process: It refers to the process involved in manufacturing or delivering the product or services to the customer (Groucutt and Hopkins, 2015). British airline need to have a structured process so that it can provide same quality of services to its customers every time like, in-flight meals should always be of good quality standard.
Segmentation, Targeting and Positioning
STP refers to marketing plan that helps marketers identify target customers. The detailed analysis is described below.
- Segmentation: It refers to market research and analysis to identify the customer needs and segment market based on it. It has different segments, first demographic, where customers are characterized based on occupation, education, social status, family size. Second, geographic, characterized on age, gender, income, density etc. Third, psychographic, based on lifestyle, personality and occasions. Forth behavioural, depends upon benefits, status, attitude. Fifth is travel and tourism industry base, takes into consideration customer expectation, image, trip descriptors (Palmatier and Crecelius, 2019). British Airways has taken into consideration all the above factors such as number of domestic and international flights, customers demand, and lifestyle type of trips.
- Targeting: British Airways has targeted different customer segments based on its level of services: economy class, premium economy, executive club and first class. Targeted every class of customers from low to high level class (Sahu, and Pradhan, 2017).
- Positioning: British Airways serving different customers globally because of its customer positioning as it has targeted on customers’ needs like regular trips, business trips, family vacation, occasional trips, customer expectation etc.
In this report Airline industry has been describe with the help of British Airway company and the growing importance of marketing in airline industry. British Airway is the second largest airline of United Kingdom in the basis of passenger carried and fleet size. The first part explain various concept and terminology of marketing have been used some of them are Product strategy, Branding and Promotional strategy. It can be concluded that there are various marketing concept used by the British Airways to achieve its objectives. Also, there are various marketing strategies and programs that have been used by British Airways in achieving their business objectives. Also, the objectives which have been achieved were ethical. It can also be concluded for the report marketing principle and concept which have been used by British Airlines for its daily organisational operation and there exists a strong relationship between marketing and other functional areas
- It is suggested for British Airways in order to attract huge audience with its offers, the best way to use to social media marketing like Facebook, Instagram, and WhatsApp etc. This can help the company to target a huge audience with loss costs.
- Also, it is recommended for the company to market about its offers and discounts in an effective manner and develops an effective marketing strategy.
- British Airways should keep on innovating its promotional and branding strategies in order to keep customers engaged.
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