10 step marketing plan-cebu pacific

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10 step marketing plan-cebu pacific

  1. 1. 10 STEP Marketing Plan for Cebu Pacific<br />Kaye Avellana<br />June 2011<br />http://kavellana.blogspot.com<br />
  2. 2. This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.<br />The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.<br />When appropriate, data are “masked” so as not to create unexpected conflicts.<br />The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.<br />Disclaimer<br />http://kavellana.blogspot.com<br />
  3. 3. Summary: Steps 1 to 5<br />Cebu Pacific’s target market are budget-conscious travelers<br />Cebu Pacific fliers need low-cost airfares to satisfy social and personal needs of traveling<br />Cebu Pacific’s direct competitors are: AirPhilExpress, Zest Air, Philippine Airlines, and AirAsia Philippines<br />The opportunity gap lies in capitalizing on the vast number of destinations and maintaining low-cost status<br />The total market size for domestic air travel was 8.4 million tourists or PhP 42 Billion in 2010. Estimated growth for 2011 is 12%.<br />http://kavellana.blogspot.com<br />
  4. 4. Summary: Steps 6 to 10<br />Cebu Pacific has the most domestic destinations available<br />Cebu Pacific is low-cost compared to PAL and SEAir, but varies depending on season with ZestAir and AirPhilExpress<br />Cebu Pacific promos are frequent and very attractive to the market through the use of email blasts, word-of-mouth, print ads, etc.<br />Apart from having covered most domestic tourist spots, they also have an efficient online booking system<br />Cebu Pacific combines low-cost airfare and number of destinations to attract customers and make purchases easy by booking online<br />http://kavellana.blogspot.com<br />
  5. 5. Primary Target Market<br />Age 21-35; Male and Female; Single and Married; Social Class BC<br />Employed; budget-conscious;<br />Avid leisure traveler; almost always with loved ones (friends/family/significant other)<br />Willing to sacrifice comfort for savings<br />Tech-savvy<br />Not afraid to make online purchases<br />http://kavellana.blogspot.com<br />
  6. 6. PTM’s Needs/Wants/ Demands<br />The need to feel they can afford to travel, the independence to pay for trips & freedom to travel whenever they want<br />The need to belong and have relationship-enriching experiences with people they love<br />Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler<br />6<br />http://kavellana.blogspot.com<br />
  7. 7. PTM’s Needs/Wants/ Demands<br />Needs:<br />They need to feel the satisfaction of being able to afford and treat themselves to a vacation whenever the opportunity strikes. They want to share these vacations with great company such as their family, friends and significant other and build memories that will last a lifetime.<br />Wants: They want a reputable low-cost carrier that could give them the chance to fulfill their travel needs without hurting the wallet.<br />Demands: They want the best value for their money, being able to reach the destination at hand without compromising safety and service quality in the process. <br />http://kavellana.blogspot.com<br />
  8. 8. Cebu Pacific’s competitors<br />Direct Competitors<br />AirPhilExpress, ZestAir, Air Asia Philippines (3rd QTR 2011), Philippine Airlines, SeAir<br />Indirect Competitors<br />Bus Lines (Victory Liner, PhilTranCo, etc)<br />Ferries (WG&A, Sulpicio, RoRo, etc)<br />Variables:<br />Price, Comfort, Availability of Routes, Travel Time, Companions’ Characteristics/Personalities<br />http://kavellana.blogspot.com<br />
  9. 9. Price vs. Socio-Economic Class<br />Price vs. SEC Matrix<br />PAL<br />SeAir<br />Cebu<br />Pacific<br />AirAsia<br />Philippines<br />?<br />AirPhil<br />Express<br />Bus Lines/<br />Ferries<br />ZestAir<br />http://kavellana.blogspot.com<br />
  10. 10. Benefit positioning vs. brand map for Domestic Airlines<br />Benefit Positioning vs. Brand Matrix<br />*C/S: Code-share<br />http://kavellana.blogspot.com<br />
  11. 11. Market Gap<br />Cebu Pacific is the pioneer low-cost airline in the country wherein Zest Air and AirPhilExpress have followed suit. Air Asia is following the same marketing positioning as CP but with international branding.<br />CP can focus on tenure in the industry as well as continued low-cost offers to stay ahead of Air Asia.<br />CP is notorious for delayed flights and poor customer service.<br />In order to stay on top in the low-cost airline segment, CP should improve on quality service and maintain their low-cost fares. They should also try to penetrate the tourist-focused routes which are currently monopolized by competitors (Marinduque, Batanes)<br />http://kavellana.blogspot.com<br />
  12. 12. Cebu Pacific is still the domestic market leader<br />Cebu Pacific has successfully maintained its position as the country’s largest domestic carrier<br />48.2% of sales from domestic air travel market in 2010 <br />From January to June 2010, Cebu Pacific flew 4.1 million domestic passengers, 1.2 million passengers more than Philippine Airlines (PAL).*<br />The total market size for domestic air travel was 8.4 million tourists in Q1 2010<br />Source: http://www.financemanila.net/2010/10/cebu-pacific-ipo-last-call-for-boarding/<br />http://kavellana.blogspot.com<br />
  13. 13. Cebu Pacific held a 48.7% domestic market share over its competitors in 2010<br />Cebu Pacific = 48.7%<br />Philippine Airlines = 34.5%<br />AirPhilExpress = 7.9%<br />Zest Air = 7.3%<br />SeAir = 1.6%<br />Revenues of CP in 2010 was PhP 14.91 Billion, a 30.9% increase from 2009 values.<br />Cebu Pacific is still the domestic market leader<br />Source: http://www.financemanila.net/2010/10/cebu-pacific-ipo-last-call-for-boarding/<br />http://www.usnewslasvegas.com/national/cebu-pacific-overtakes-pal-in-domestic-market/<br />http://kavellana.blogspot.com<br />
  14. 14. Domestic Travel Market Size<br />Competitor data= PhP 21.6 Billion<br />Company data = PhP 20.5 Billion<br />Customer Usage data = PhP 42.1 Billion<br />http://kavellana.blogspot.com<br />
  15. 15. http://kavellana.blogspot.com<br />
  16. 16. http://kavellana.blogspot.com<br />
  17. 17. http://kavellana.blogspot.com<br />
  18. 18. http://kavellana.blogspot.com<br />
  19. 19. http://kavellana.blogspot.com<br />
  20. 20. Print Ads – domestic airlines<br />http://kavellana.blogspot.com<br />
  21. 21. Product Description<br />Cebu Pacific <br />has promo fares year round and for any occasion<br />offers the most routes for travelers<br /> has the “fun” factor (in-flight activities)<br />Pushes hard for their tag line “it’s time every Juan flies” and is manifested in all their advertising and promotional materials<br />http://kavellana.blogspot.com<br />
  22. 22. Price Comparison<br />Although some airlines are cheaper than CP in other destinations, CP is consistent in maintaining affordable airfare in all routes<br />http://kavellana.blogspot.com<br />
  23. 23. Modes of Communication<br />http://kavellana.blogspot.com<br />
  24. 24. Sales Promotions<br />http://kavellana.blogspot.com<br />
  25. 25. Advertising<br />http://kavellana.blogspot.com<br />
  26. 26. Direct Marketing<br />http://kavellana.blogspot.com<br />
  27. 27. Public Relations<br />Philippine budget carrier buys 37 new Airbus jets<br />Philippine pilot soars above gender barrier<br />http://kavellana.blogspot.com<br />
  28. 28. Events & Experiences<br />http://kavellana.blogspot.com<br />
  29. 29. Word of Mouth<br />http://kavellana.blogspot.com<br />
  30. 30. Sales Promotions-Competitors<br />http://kavellana.blogspot.com<br />
  31. 31. Advertising-Competitors<br />http://kavellana.blogspot.com<br />
  32. 32. Purchase Point<br />Online Sales – cebupacificair.com<br />Call Center Sales<br />Local & International banks nationwide<br />Cebu Pacific ticketing office<br />Accredited Travel Agencies<br />Electronic copy via email<br />Print-out from ticketing office/travel agencies<br />http://kavellana.blogspot.com<br />
  33. 33. Cebu Pacific’s Generic Winning Strategy<br />Low Cost Producer<br />Supply and Distribution Leverage<br />Differentiation<br />Niche<br />http://kavellana.blogspot.com<br />
  34. 34. Differentiation as the key<br />Common: low-cost flights, year-round promos, good number of fleets, online booking<br />Difference: no-frills & fun flights, most number of fleets, aggressive public communication strategies<br />http://kavellana.blogspot.com<br />
  35. 35. Recent Market-changing Event<br />Operations will begin Q3 2011<br />Joint venture between Air Asia & Filipino investors<br />Promises low fares to compete with Cebu Pacific & PAL<br />Travel to both domestic & international destinations with Clark as its hub<br />5 brand-new A320 planes this year with target of 20 by 2015<br />http://kavellana.blogspot.com<br />
  36. 36. Cebu Pacific VS Air Asia<br />Started operations in 1996<br />Flights to/from 25 countries<br />78 total destinations (excl. domestic)<br />SEA’s biggest low-cost carrier<br /><ul><li>Started operations in 1996
  37. 37. Flights to/from 10 countries
  38. 38. 49 total destinations (incl. domestic)
  39. 39. RP’s leading domestic carrier</li></ul>http://kavellana.blogspot.com<br />
  40. 40. Adapting to Change<br />Air Asia is a rookie in the Philippine Market<br />Cebu Pacific should continue offering promos that connect to the public, using their tag-lines such as “for every Juan” to capture that sense of Pinoy ownership<br />Air Asia is a more experienced airline<br />CP should improve on customer service and timely schedule of flights so that users will not switch to Air Asia<br />http://kavellana.blogspot.com<br />
  41. 41. Adapting to Change<br />Air Asia is no-frills and no-fun<br />Air Asia also follows the no-frills flights model. However, they also don’t have additional activities such as the Fun Flights, an advantage when capturing the Filipino market.<br />Air Asia will be directly competing with CP and PAL for domestic & international destinations<br />CP should increase their destinations to include up & coming tourist attractions, thereby widening their lead against old & new competitors (Batanes, Marinduque, etc)<br />http://kavellana.blogspot.com<br />
  42. 42. 10 STEP Marketing Plan for Cebu Pacific<br />Kaye Avellana<br />June 2011<br />http://kavellana.blogspot.com<br />

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