Airline marketing

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Airline marketing

  1. 1. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON“TOO MUCH CONTEMPORARY AIRLINE ADVERTISING IS DISHONEST,BORING, STEREOTYPED AND SEXIST”QUESTION 01 What do you consider are the main advantages anddisadvantage of print advertising for those airlines that use it as part oftheir marketing communication strategy?QUESTION 02 Examples of press advertisement and comparison of thesame with the statement “Too much contemporary airline advertising isdishonest, boring, stereotyped and sexist”1|Page Prepared by: Rohit Tomar
  2. 2. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONContents1. Executive Summary ........................................................................................................................... 32. Detailed Report ................................................................................................................................. 4 2.1 Advantages...................................................................................................................................... 4 2.2 Disadvantages ................................................................................................................................. 53 Airline Advertisement Analysis ............................................................................................................. 7 3.1 Example 1 (DHL) .............................................................................................................................. 7 3.2 Example 2 (Qatar Airways) ............................................................................................................. 9 3.3 Example 3 (Thai Airways) .............................................................................................................. 11 3.4 Example 4 (Indigo Airline) ............................................................................................................. 13 3.5 Example 5 (Air Asia) ...................................................................................................................... 15 3.6 Example 6 (Lufthansa Airline) ....................................................................................................... 172|Page Prepared by: Rohit Tomar
  3. 3. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON1. Executive SummaryQuestion 01Print Advertising has always been an integral part of an Airline’s Marketing Strategy. An Airline usesprint advertising of various forms to communicate with its customer base. In order to comprehend thefactors which determine the print marketing strategy for an airline, India has been chosen as anillustrative example for this report. Utilizing this sample I shall elucidate an air operator’s marketingstrategy and give an insight into the advantages and disadvantages of print marketing for this samplemarket.The sample market (India) has been analyzed utilizing the following parameters: 1. Marketing reach of print advertising within the sample market 2. Brand positioning and visibility vis a vis the sample market 3. Brand Credibility 4. Cost of utilizing print media in comparison with other channels of advertising 5. Effectiveness of print media communication 6. Competitors response to utilization of print media communication 7. Measurement of customer response to print media communicationPost examination of the aforementioned parameters, they have been classified as being advantageous/disadvantageous towards an effective marketing solutions for an air operator at various stages of itsproduct life cycle within the sample space.Question 02Examples of print advertisements of 6 international airlines haven been selected for this report. Thecriterion of selection of these advertisements has been the market place aimed by these airlines (India).Each advertisement is closely analyzed to assimilate the effectiveness of the advertisement and its levelof conformance or non-conformance to the statement “Too much contemporary airline advertising isdishonest, boring, stereotyped and sexist”.The Airlines whose advertisement has been chosen for this report are: 1) DHL 2) Qatar Airways 3) Thai Airways 4) Indigo Airlines 5) Air Asia 6) Lufthanza Airlines3|Page Prepared by: Rohit Tomar
  4. 4. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON2. Detailed Report2.1 AdvantagesThe following are the advantages for Print Marketing for our Airline 2.1.1 Marketing ReachIn a country like India, the population is an asset for an industry like Aviation Industry. With a steadygrowth in Air Travel Market of more than 10% year on year1, it’s imperative for an airline to be able toreach its customer base which is spread far and wide across the country.To reach this extensive Customer Base an Airline needs to find a common platform. This is provided bythe News Paper Industry in India, which against the global trend, in India is expected to grow at a rate of12% for the year 2012-132. The high number of subscriber base makes Newspaper Advertisement thebest way to communicate with the population. It would provide the ideal inroad towards introductionof the airline to the customers.In addition, a very high range of diversity exists among languages which are spoken in India, this makesit ideal to utilize the print media (newspapers) to communicate effectively with the customers in theirpreferred language. 2.1.2 Brand Positioning & VisibilityAn Established Airline in India, would use print marketing as a Brand Positioning strategy. It would usePrint Marketing to further promote and strengthen its market leader position. An Airline could also usethe print marketing as an effective tool to build investor confidence if it’s publicly traded or to ensure abetter IPO (Initial Public Offering).An Airline would also use print marketing in leading magazines to target their business class passengers.It would use magazine print marketing to introduce new routes or a new product. One of the benefits ofprint advertising in magazines is that it reaches its customers during a time in which the customer isrelaxing and hence is receptive to what the advertisement wants to communicate. 2.1.3 Brand CredibilityPrint Marketing has always been considered to aid tremendously in terms of Brand Credibilityparticularly due to the psychological effect it has on the reader. Traditionally, “In Writing” has beenconsidered as a mark of credibility for a brand and Print Marketing further assures the same at asubconscious level for a customer.1 th As per figures released by CAPA (Centre for Asia Pacific Aviation) Aviation Analysis, 29 September 2011,http://www.centreforaviation.com/analysis/india-is-worlds-fastest-growing-aviation-market-as-double-digit-domestic-growth-continues-596522 As per BBC Business News article based on an analysis from KPMG http://www.bbc.co.uk/news/business-143627234|Page Prepared by: Rohit Tomar
  5. 5. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON2.2 Disadvantages 2.2.1 Cost of MarketingOne of the major hindrances for print marketing is the cost of print marketing. An Airline undergoingsteps to cut its losses during a financial downturn, would be focusing on cost cutting and printmarketing does feature among the top areas under which cost savings can be achieved.Example: In Times of India (Highest Readership in India for English Language) it would cost an Airlineabout USD 86 / Sq. Centimeter for an advertisement that would be printed for one day. This ifcompared to online advertisement is far more costly, as online advertisements give the advantage to theAirline for Pay Per Click, which ensures that an Airline would only pay for advertisement when thecustomer clicks on the ad. 2.2.2 Effective CommunicationPrint media advertising does pose a limitation towards effective communication. As the Advertisementsspaces are for sale, there is a persistent risk that the Advertisement might not stand out among theclutter of advertisements and can hence be overshadowed with the presence of another bigger sizeadvertisement. These factors result in an Airline using a bigger Advertisement which further results inhigher cost of advertisement.Also due to 2 Dimensional Print Media, the Advertisements are less interactive or may not be able toeffectively communicate with its customers. 2.2.3 Competitors reactionPrint Advertisement serves as critical information for Competitors. An established airline would use theprint advertisements of a new startup airline to analyze the latter’s marketing strategy and would thenstep up its activity aggressively to retain its market share. For illustration, if an airline releases a printadvertisement of a new route that it plans to launch with a cheaper fare than available in the marketspace, the competitor airline might aggressively reduce its fares on the same route to retain its marketshare. In some scenarios, the competitor airline would decide to incur losses on the competing routeand undercut the fares in the advertisement to remove the new entrant from entering the market.5|Page Prepared by: Rohit Tomar
  6. 6. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON 2.2.4 Measurement of ResponseThere is no effective solution today available to measure the response of a print advertisement. Thereare various methods employed by an Airline like a feedback card which might contain a questiontypically “why did you choose X Airline” or an Airline might contract a third party company to try and getresponse from its customers about the customer’s choice and the reason for the customer’s choice.Having these methods however does not provide a measurement of response to an Airline’sAdvertisement in Print Media. Adding to this ineffectiveness, the option of internet marketing hasserved as a very useful tool for an Airline to measure the response to its only marketing strategies byusing methods like Pay per Click etc. 2.2.5 CredibilityPrint Advertisement also carries a high risk for an Airline who utilizes very aggressive marketing. For anAirline which employs a Cost Leadership Positioning Strategy, it has to use Print Advertisement withutmost care. For illustration, if an Airline releases an advertisement of a very cheap fare available on oneof its routes, it will have to have to ensure that at any given point of time it should be able to offer thefare it has advertised. Now, there could be a possibility that when a customer tries to book the cheapfare tickets, it’s unavailable as either it might have been sold out or the fare would not be available forthe choice of customer’s flight. However, for the customer this can generate a negative reactiontowards the Airline denouncing it to be dubious and untrue. This would greatly impact the credibility ofthe Airline in the customer’s mind.6|Page Prepared by: Rohit Tomar
  7. 7. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON3 Airline Advertisement Analysis 3.1 Example 17|Page Prepared by: Rohit Tomar
  8. 8. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONAdvertisement: DHL AdvertisementMagazine: TIME MagazineSubscription Month: 3rd October 2011Location: Second Page and Third Page Complete Coverpage.Advertisement Analysis 3.1.1 Positives 1) The Advertisement effectively positions DHL as a world leader in logistics. 2) Used an established brand of Airbus, adding strength to its branding. 3) Non Contemporary, Non Stereotyped, Non Sexist. 4) The Advertisement is not Dishonest as DHL has proven itself to be a leader in the Logistics Market in the European Market. 3.1.2 Negatives 1) Co-Branding also carries with itself the possibility of an impact of a negative brand being used for co-branding. In this case, Airbus has been in the news recently for production delays which is a negative publicity for the brand using Airbus for Co Branding.8|Page Prepared by: Rohit Tomar
  9. 9. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON 3.2 Example 29|Page Prepared by: Rohit Tomar
  10. 10. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONAdvertisement: Qatar AirwaysMagazine: TIME MagazineSubscription Month: 3rd October 2011Location: One Page Advertisement Page Number 23.Advertisement Analysis 3.2.1 Positives 1) The advertisement is aiming to position Qatar as a 5 Star Airline promotes its product 5 Star Journey to Europe for its target customers. 3.2.2 Negatives 1) Focus of the advertisement is only on food. It does not mention about Qatar Airlines network. 2) The Advertisement promotes a food platter as the face of the advertisement, the same however does not appear appealing for customers (Indian or Middle Eastern). 3) Airline promotes itself to be World’s 5-Star Airline but does not mention about the auditing company or group that has given it this recognition. 4) The Advertisement appears boring and does not make a customer involved to read about the same. 5) The Advertisement is not stereotyped but also does not have the look and feel of an Airline’s Advertisement.10 | P a g e Prepared by: Rohit Tomar
  11. 11. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON 3.3 Example 311 | P a g e Prepared by: Rohit Tomar
  12. 12. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONAdvertisement: Thai AirwaysMagazine: TIME MagazineSubscription Month: 3rd October 2011Location: One Page Advertisement Page Number 17.Advertisement Analysis 3.3.1 Positives 1) Product focused Advertisement (Non Stop Flights to Brussels). 2) Has effectively used Skytrax awards for Best Economy Class Seat and Catering, thereby focusing and targeting on the Economy class travel. 3) Has effectively used its Star Alliance, thereby using a reassurance of being a partner in a strong alliance. 4) Flight Details explicitly given for the customer to be able to choose his flight. 5) Non Contemporary, focused Advertisement, delivering details. 6) No False promises, non-sexist and Communicative to the Customer.12 | P a g e Prepared by: Rohit Tomar
  13. 13. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON 3.4 Example 413 | P a g e Prepared by: Rohit Tomar
  14. 14. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONAdvertisement: Indigo AirlinesMagazine: Business World MagazineSubscription Month: 3rd October 2011Location: One Page Advertisement Page Number 5.Advertisement Analysis 3.4.1 Positives 1) Focused Advertisement on new routes to Singapore 2) Informative Advertisement as it contains the flight details. 3) Focused on Business Travellers as it does not entice a holiday traveller through the advertisement. 3.4.2 Negatives 1) Too plain and non-communicative 2) The Advertisement is boring and stereotyped 3) It does not talk about the product offering from Indigo Airlines. (Indigo Airlines is a Low Cost Carrier (LCC) in India and currently does not provide a product like Inflight Catering, etc.) 4) Being an LCC, it would be important to promote a fare related Advertisement, which is missing in this case. (If we use MakeMytrip.com (a leading internet ticket booking website3) we see that Indigo Mumbai- Singapore Rates are significantly lower than competitors for dates of travel within 4 days, post 4 days cost of ticket on Indigo Airlines is higher than competitors)3 Utilized www.makemytrip.com as reference for the examination of fares on 18 Oct 201114 | P a g e Prepared by: Rohit Tomar
  15. 15. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON 3.5 Example 515 | P a g e Prepared by: Rohit Tomar
  16. 16. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONAdvertisement: Air AsiaMagazine: Outlook Business MagazineSubscription Month: 1st October 2011Location: One Page Advertisement Page Number 37.Advertisement Analysis 3.5.1 Positives 1) Interactive Advertisement 2) Product specific, describing about the Self Check In product of Air Asia 3) Used Skytrax Award for Best Low Cost Airline thereby defining its product for the customer. 3.5.2 Negatives 1) The advertisement has been targeted towards a market segment (India) which has not experienced any Airline charging an extra cost towards passengers using check in counter. 2) For an inexperienced customer to comprehend this product, its needs to be projected by the Airline that this product would help to ensure the Airline to consistently provide a lower fare for its customers. 3) Lack of this critical information makes the advertisement ineffective to its target customers.16 | P a g e Prepared by: Rohit Tomar
  17. 17. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDON 3.6 Example 617 | P a g e Prepared by: Rohit Tomar
  18. 18. AIRLINE MARKETING MODULE INTRODUCTORY COURSEWORK A OPTION 1CITY UNIVERSITY LONDONAdvertisement: Lufthansa AirlinesMagazine: Harvard Business Review MagazineSubscription Month: October 2011Location: One Page Advertisement Page Number 5.Advertisement Analysis 3.6.1 Positives 1) Product specific Advertisement. 2) Effectively targets business and economy class passengers by promoting the network strength of Lufthansa to ensure a flexible connection for a business class passenger and reliability for economy class passenger. 3) Promotes Star Alliance and also details of its partner airlines which further increases the confidence and flexibility of choice for its customers. 3.6.2 Negatives 1) The advertisement is boring. 2) The advertisement is sexist and has used the classical family picture, depicting father as the working member of the family (traveller) and a father daughter relationship.18 | P a g e Prepared by: Rohit Tomar

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