10 step marketing plan

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a 10 step marketing plan (individual) for Cebu Pacific

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10 step marketing plan

  1. 1. 1 10 STEP Marketing Plan for Cebu Pacific Air, Inc. Soleil Gan June 2011 http://taeyangxinyi.blogspot.com
  2. 2. This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes. Disclaimer http://taeyangxinyi.blogspot.com
  3. 3. 1. Cebu Pacific’s PTM are budget-driven travelers 2. Who wants quality low cost travel experience with friends & family 3. Can opt for Philippine Airlines, AirPhil, ZestAir, Seair 4. Gap is there are other brands who can offer lower cost fares and possibly better service 5. The total market is Php28.28B; Cebu Pacific share is 48.20% Steps 1 to 5 Shows who cares… customers and competition http://taeyangxinyi.blogspot.com
  4. 4. 6. Budget Travel airline 7. Cebu Pacific is priced lower than Philippine Airlines, but higher than ZestAir and AirPhil 8. Uses Discounts, Print, Experience, among others 9. Flights can be booked anytime, anywhere 10. Cebu Pacific is a Low Cost Producer Steps 6 to 10 Shows how Cebu Pacific is better http://taeyangxinyi.blogspot.com
  5. 5. 1. Cebu Pacific’s target market are budget conscious individuals  Demographics: 21-35; Male and Female; lower B to C; may be Single or Married  Lifestyle: Working or starting to work; budget- conscious/driven; comfortable with using the internet; keen to travel (to see the world, time away from a fast-paced life)  Behavior: Travels during long weekend holidays; with a friend or a group of people; an average of 3x a year*Exclusion of a certain demographic group in PTM does not mean they do not buy the product. Some do buy, b majority don’t which is why limited marketing resources are best focused on PTM http://taeyangxinyi.blogspot.com
  6. 6. PTM needs have the travel experience 6 Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler I want to be recognized by my peers. I want to belong http://taeyangxinyi.blogspot.com
  7. 7. 2. Young Adults have similar travel needs, wants & demands Budget-driven Young Adult Travelers need the security when traveling, a sense of belongingness and recognition from peers that he/she has the (financial) capability to travel (with them). Budget-driven Young Adult Travelers choose CebPac over other airlines because of regular promo fares, all year round low(er) cost fares, & freedom of choice on unnecessary add-ons. Budget-driven Young Adult Travelers are demanding quality low cost flights where they can be comfortable when traveling. http://taeyangxinyi.blogspot.com
  8. 8. 3a. Cebu Pacific has a number of competitors, big and small  Direct: Philippine Airlines, ZestAir, AirPhil Express, Seair  Indirect: Super Ferry, Negros Navigation, Sulpicio Lines, RORO, private cars, buses  Variable: Fare rates, flight availability, destination choices, airline membership, traveler’s budget, reputation, travel packages http://taeyangxinyi.blogspot.com
  9. 9. 3b. Cebu Pacific is the Cost Leader for local airline companies Price vs. Destination type Domestic International* High Priced Medium Priced Low Priced CEBPAC AirPhil ZestAir PAL Seair As of 2011 *foreign airlines not included: Cathay 10%, Singapore Airlines 5% PAL CEBPAC http://taeyangxinyi.blogspot.com
  10. 10. Cebu Pacific’s positioning is detailed… As of 2011 Functional Benefit CebPac PAL AirPhil ZestAir Seair Dom Int'l Dom Int'l Dom Int'l Dom Int'l Dom Int'l Regular Promo Fares Advanced quarterly promo Destination Availability Seat Selection Travel Insurance Prepaid Baggage (addtl) No Check In Baggage Travel Packages Mileage Program Comfort Food on board (free) Games on board http://taeyangxinyi.blogspot.com
  11. 11. 4. Cebu Pacific strongly positions itself with a low cost strategy Cebu Pacific is the only airline that:  Is able to provide the cheapest rate at Php0 base fare,  is able to provide lower rates still with regular monthly promo fares, and  gives the choice of having a check-in baggage as an add-on to the fare rate Cebu Pacific is only able to provide low(est) cost fares when there are promos. http://taeyangxinyi.blogspot.com
  12. 12. 4. Positioning: as per the tagline “It’s time everyone(Juan) flies” -http://www.cebupacificair.com where one=Juan, pertains to every Filipino, no matter the social class, can now have the opportunity to “fly”. The current positioning of the brand is Cost Leadership, but with the need of the PTM for quality performance/service, there may be a need for a mix of Cost Leadership and Service Orientation. http://taeyangxinyi.blogspot.com
  13. 13. 5a. Based on Press Releases, the Airline market is at Php28.28B December 2010: Market Size for aviation market (domestic)  Cebu Pacific 48.20%  Philippine Airlines 32.10%  Air Philippines 11.20% 1st Q 2011: Domestic passengers  Cebu Pacific Php2.45M  Philippine Airlines Php2.34M as of 2010 http://taeyangxinyi.blogspot.com
  14. 14.  http://www.centreforaviation.com/news/2010/09/03/philippine-airline  https://onlinebooking.philippineairlines.com References http://taeyangxinyi.blogspot.com
  15. 15. 5b. Based on Cebu Pacific’s data, its market share is at 48.20%, where total market size is Php29.814 Cebu Pacific claims its market share for 2010 is at 48.20% Given that the average domestic price of a Cebu Pacific one way ticket is at Php1,799: Php1,799 x passengers of 5 local airlines = Php29.814 Cebu Pacific’s 2010 combined passenger revenues is at Php24.656 http://www.cebupacificair.com/aboutus http://taeyangxinyi.blogspot.com
  16. 16. 5c. Consumer data shows that market size may be Php28.259B With a total of 16.56mil passengers for 2010: 16.56mil x Php1,706.46 = Php28.259B http://www.abs-cbnnews.com/business/02/13/11/ domestic-tourism-cheaper-fares-hike-2010-airline- passengers-12 http://taeyangxinyi.blogspot.com
  17. 17. 5. May be concluded that passenger airline market is at Php28.28 Billion 1. Competitor/Industry data= Php28.28B 2. Company data = Php29.814B 3. Customer Usage data = Php28.259 http://taeyangxinyi.blogspot.com
  18. 18. 6a. Booking for a travel is easy with the available online booking feature Philippines Airlines Super Ferry Cebu Pacific http://taeyangxinyi.blogspot.com
  19. 19. Cebu Pacific, Philippine Airlines, Super Ferry http://taeyangxinyi.blogspot.com
  20. 20. 6b. What is Cebu Pacific to the public? Cebu Pacific offers year round Lite fares for all destinations. Known for its Fun Flights—fun & games while onboard. Cebu Pacific airplanes may be the youngest (currently) in the industry. http://www.cebupacificair.com/aboutus/index.html http://taeyangxinyi.blogspot.com
  21. 21.  16 international flights: China, Hong Kong, Japan, Macau, South Korea, Taiwan, Brunei, Indonesia, Malaysia, Singapore, Thailand, Vietnam  33 domestic flights: Bacolod, Calbayog, Catarman, Caticlan, Cebu, Dumaguete, Iloilo, Kalibo, Roxas City, Tacloban, Tagbilaran, Busuanga, Cauayan, Clark, Laoag,Legazpi, Manila, Naga, Puerto Princesa, San Jose, Tuguegarao, Virac,Butuan, Cagayan de Oro, Cotabato, Davao, Dipolog, General Santos, Ozamiz, Pagadian, Siargao, Surigao, Zamboanga Cebu Pacific offers the following destinations… http://taeyangxinyi.blogspot.com
  22. 22. 7. Cebu Pacific is truly priced competitively vs its competitors   CebPac PAL AirPhil ZestAir Seair Davao 1,799 2,638 1,596 793 n/a Cebu 999 1,638 757 695 n/a Caticlan 1,399 2,025 1,150 n/a 2,455 GenSan 2,099 2,738 n/a n/a n/a Puerto  Prinsesa 1,299 1,838 1,239 891 n'a In Php; one way base fare for the period of July 2, 2011; Checked on the night of June 9, 2011 http://taeyangxinyi.blogspot.com
  23. 23. 7. CebPac is around 45% lower than PAL but is 15% higher than AirPhil and 40% higher than Zest Air   CebPac PAL AirPhil ZestAir Seair Davao 100% 146.64% 88.72% 44.07% - Cebu 100% 163.96% 75.78% 69.57% - Caticlan 100% 144.75% 82.20% - 175.48% GenSan 100% 130.44% - - - Puerto Prinsesa 100% 141.49% 95.38% 68.59% - total base 145.46% 85.52% 60.74% 175.48% It must be noted that the prices used were regular fares, not promo fares. Although Airphil and ZestAir may be cheaper at the moment, CebPac may come up with a promo sometime soon. http://taeyangxinyi.blogspot.com
  24. 24.  Cost Leadership  CebPac can counter the prices of ZestAir and AirPhil with their regular promo fares 7. Pricing Strategy is… http://taeyangxinyi.blogspot.com
  25. 25. 8a. Cebu Pacific uses Sales Promotion, Advertising, Fun Flight experiences 1 3 4 5 http://taeyangxinyi.blogspot.com 2
  26. 26.  Both screenshots are taken on 06/09/2011. These promos came out right after the Php0 fare promo. 8a. Cebu Pacific has regular seat sale promos http://taeyangxinyi.blogspot.com
  27. 27. 8a. Cebu Pacific always has at least a 1/3 spread in the newspapers for its ads http://taeyangxinyi.blogspot.com
  28. 28. 8a. Cebu Pacific came up with the Fun Flights program Games and prizes And a dancing cabin crew while explaining the safety procedures! http://taeyangxinyi.blogspot.com
  29. 29. 8a. Cebu Pacific uses Interactive Marketing by… Sending emails Posting on Facebook http://taeyangxinyi.blogspot.com
  30. 30.  Promo fare advertisements sent via email are late at times  Individuals could just learn about it through friends  Or perchance they’ve come upon an ad on the newspaper 8a. Word of Mouth http://taeyangxinyi.blogspot.com
  31. 31. 8b. AirPhil empasizes on the “free” check-in baggage http://taeyangxinyi.blogspot.com
  32. 32. 8b. Philippine Airlines has a “lowest fare” search engine http://taeyangxinyi.blogspot.com
  33. 33. 8b. Seair has the fastest flight to Boracay—at 35mins! Number of flights to Boracay is even increased! http://taeyangxinyi.blogspot.com
  34. 34. 8b. ZestAir has a membership card that acts like a discount card http://taeyangxinyi.blogspot.com
  35. 35. 2 to 4 advertising methods are implemented at the same time! 8b. Cebu Pacific’s communication stand out because.. http://taeyangxinyi.blogspot.com
  36. 36. 8b. And no one has yet to do the… Php0 fare! http://taeyangxinyi.blogspot.com
  37. 37. 9. Cebu Pacific flights can be booked individually or through an agent  Company website; travel agent; over the counter Cebu Pacific Agents  Company website: Global Travel/OTC CebPac Agent: Nationwide  Print-your-own itinerary ticket  Cash and Credit Card Transaction, Over the Counter, ATM, Online Banking, (Mobile) Phone Banking http://taeyangxinyi.blogspot.com
  38. 38. 10. Cebu Pacific is a Low Cost Producer Cebu Pacific’s main strategy is to get more passengers through offering of low cost promo fares. It benefits from the current inflation concern as people would tend to be more budget-conscious when buying. A very basic but relatively good service provided by low cost producer—we get what we paid for. http://taeyangxinyi.blogspot.com
  39. 39. 39 SUMMARY http://taeyangxinyi.blogspot.com
  40. 40. 1. Cebu Pacific’s PTM are budget-driven travelers 2. Who wants quality low cost travel experience with friends & family 3. Can opt for Philippine Airlines, AirPhil, ZestAir, Seair 4. Gap is there are other brands who can offer lower cost fares and possibly better service 5. The total market is Php28.28B; Cebu Pacific share is 48.20% Steps 1 to 5 Shows who cares… customers and competition http://taeyangxinyi.blogspot.com
  41. 41. 6. Budget Travel airline 7. Cebu Pacific is priced lower than Philippine Airlines, but higher than ZestAir and AirPhil 8. Uses Discounts, Print, Experience, among others 9. Flights can be booked anytime, anywhere 10. Cebu Pacific is a Low Cost Producer Steps 6 to 10 Shows how Cebu Pacific is better http://taeyangxinyi.blogspot.com

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