10 Step Marketing Plan for Cebu Pacific Air

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  • 1. 1
    10 STEP Marketing Plan for CEBU PACIFIC AIR
    Sheilanor C. Turingan
    June 2011
    http://sheilanorturingan.blogspot.com
  • 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://sheilanorturingan.blogspot.com
  • 3. Steps 1 to 5Cebu Pacific targets budget travelers
    Cebu Pacific’s travel base is the price-conscious young travelers.
    PTM wants more travel which may mean less comfort.
    Direct competitors are Airphil, ZestAir, SEAir and PAL.
    Opportunity of bringing air travel closer to more Filipinos.
    Market size for domestic passengers is 16M.
    http://sheilanorturingan.blogspot.com
  • 4. Discount Carriers is the Name of the Game
    Cebu Pacific offers year-round Low Fares, has more domestic destinations.
    Promo fares are the lowest, yet regular fares are more expensive.
    Cebu Pacific has captured worldwide audience through its website.
    Booking at your fingertips!
    Cebu Pacific dominated the market through its Low Cost Strategy.
    http://sheilanorturingan.blogspot.com
  • 5. 1. Cebu Pacific’s travel base is the Price-Conscious Young Travelers
    21-35, Male of Female, Class AB and C1 (Upper Middle Class), Single or Married
    Young/ starting professionals, Junior executives who want to travel for leisure and are price-conscious
    They usually travel on long weekends and holidays and who prefers less comfort and more travel.
    http://sheilanorturingan.blogspot.com
  • 6. PTM wants more travel which may mean less comfort
    Ability to Travel is a “status” symbol
    Satisfies the need to belong
    Traveling with family, friends and colleagues
    Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
    6
    http://sheilanorturingan.blogspot.com
  • 7. 2. PTM wants low fares!!!
    Traveling with family, friends and colleagues satisfies the need to belong
    Traveling has become a status symbol, satisfying the esteem needs
    Price-conscious travelers choose Cebu Pacific over any other airline because of its promotional seat sale for most of its international and domestic routes.
    They demand value for their money, yet chooses thrift over luxury.
    http://sheilanorturingan.blogspot.com
  • 8. 3a. Direct and Indirect Competitors
    Direct: AirPhil, Zest Air, PAL, SEA Air
    Indirect: WG&A Philippines, Negros Navigation, Sulpicio Lines, Inc., MBRS Lines, Viva Shipping Lines, Bus Lines
    Variables: Price, Purpose, Flight Frequency, Routes, Accessibility
    http://sheilanorturingan.blogspot.com
  • 9. 3b. Cebu Pacific dominates the Low Cost Carrier Industry
    as of 2011
    http://sheilanorturingan.blogspot.com
  • 10. as of 2011
    3c. Cebu Pacific’s Competitive Positioning
    Low cost,
    Great Value!
    http://sheilanorturingan.blogspot.com
  • 11. 4. Cebu Pacific’s Low Fare, Great Value Strategy
    Cebu Pacific changed the landscape of the domestic airline industry through its LOW FARE, GREAT VALUE STRATEGY
    Because of competition, other airlines such as AirPhil, Zest Air and SEA Air were forced to cut fares and offer promos.
    Traditional Positioning was based on luxury, reliability.
    http://sheilanorturingan.blogspot.com
  • 12. 4. Cebu Pacific’s vision: It’s time everyone flies!!
    Cebu Pacific pioneered in creative pricing strategies, as it manages to offer the lowest fare
    Cebu Pacific has fulfilled its vision of effectively bringing air travel closer to more Filipinos
    Cebu Pacific continue to dominate the industry as it increases flight frequency and invest in modern and efficient aircraft.
    http://sheilanorturingan.blogspot.com
  • 13. 5a. Market Size for Domestic Passengers is 16M
    data source: http://www.centreforaviation.com
    http://sheilanorturingan.blogspot.com
  • 14. 5b. Cebu Pacific’s Market share is 48.2%
    data source: http://www.centreforaviation.com
    http://sheilanorturingan.blogspot.com
  • 15. 5b. Cebu Pacific’s international traffic growth is 39.7%
    Cebu Pacific international air traffic growth
    http://sheilanorturingan.blogspot.com
  • 16. 5c. Consumer data indicatesmarket size of P91.504B
    Average travel per consumer = 3
    Leisure – 2x a year
    Business – 1x a year
    Yearly Airfare cost – 3 * P5,719
    * based on average price comparison
    Total Industry 16M * 5,719 = P91.504B
    http://sheilanorturingan.blogspot.com
  • 17. 5c. Average all-in domestic fare is P5,719.00
    Average fare: 5,719.00
    http://sheilanorturingan.blogspot.com
  • 18. 5. Competitor’s Domestic Market Share is 47.399B
    Competitor data= 47.399B
    Company data = 44.105B
    Customer Usage data = 91.504B
    http://sheilanorturingan.blogspot.com
  • 19. 6a. Cebu Pacific’s routes
    260 flights daily
    16 International Destinations
    33 Domestic Destinations
    http://sheilanorturingan.blogspot.com
  • 20. 6a. Cebu Pacific has more domestic routes
    33
    18
    11
    24
    http://sheilanorturingan.blogspot.com
  • 21. 6a. Cebu Pacific’s websitehttp://www.cebupacificair.com
    http://sheilanorturingan.blogspot.com
  • 22. 6a. Competitors’ Website
    http://www.zestair.com.ph/
    http://sheilanorturingan.blogspot.com
  • 23. 6a. Competitors’ Website
    http://www.airphils.com/
    http://sheilanorturingan.blogspot.com
  • 24. 6a. Competitors’ Website
    http://www.flyseair.com/
    http://sheilanorturingan.blogspot.com
  • 25. 6b. Cebu Pacific’s Newest Offering : Non-stop LiteFare
    • All-year round fares
    • 26. Earlier booking gets the lower fares
    • 27. Options for prepaid baggage at the
    time of booking (15,20,25,30 kg)
    http://sheilanorturingan.blogspot.com
  • 28. 6b. Cebu Pacific’s Promotional Seat Sale
    http://sheilanorturingan.blogspot.com
  • 29. 6b. Cebu Pacific’s Tour Packages
    http://sheilanorturingan.blogspot.com
  • 30. 6b. Cebu Pacific’s On-Time Performance
    Global Standard
    77%
    Internal Standard
    85%
    http://sheilanorturingan.blogspot.com
  • 31. 7. Price
    • From “0” or “1” to base fare
    • 32. Price endings of “8” or “9” – 488, 588, 888, 1099, 1499
    • 33. Options for add-ons – insurance, prepaid baggage, seat selection
    • 34. Earlier booking (6 months to 1yr) means lower fares
    http://sheilanorturingan.blogspot.com
  • 35. 7. Cebu Pacific’s Airfare is one of the most expensive!
    http://sheilanorturingan.blogspot.com
  • 36. 7. Cebu Pacific’s PricingStrategy
    • Promo fares relative to destination and travel date
    • 37. Low fares only during promos/odd days/forward booking (6mos-1yr)
    • 38. Promotional sale almost every month with limited seats and limited time.
    • 39. No-frills fares, other services provided as an option – food, blanket
    • 40. Expensive regular fares to counter promo fares.
    http://sheilanorturingan.blogspot.com
  • 41. 8a. Which of these modes does your product use?** Pls. rank most used, 1-highest use
    1
    3
    2
    4
    5
    http://sheilanorturingan.blogspot.com
  • 42. 8a. Cebu Pacific’s effectivepromotional strategies
    • Online sales through its website
    • 43. Announcement on leading newspapers
    • 44. Social networking sites: Facebook, Twitter, Youtube
    • 45. Enewsletter for Seat sale alerts
    • 46. Press releases
    • 47. Word of mouth from passengers
    http://sheilanorturingan.blogspot.com
  • 48. 8a. Cebu Pacific’sPromo Announcements
    http://sheilanorturingan.blogspot.com
  • 49. 8a. Cebu Pacific has captured worldwide audience through its website
    http://sheilanorturingan.blogspot.com
  • 50. 8a. Cebu Pacific’s Facebook Page
    Cebu Pacific Air
    Company
    241,848
    people like this
    http://sheilanorturingan.blogspot.com
  • 51. 8b. Follow Cebu Pacific on Twitter!
    http://sheilanorturingan.blogspot.com
  • 52. 8b. Cebu Pacific generates 10M views on YouTube
    Dancing Female flight attendants
    http://youtu.be/Lqh8e2KYIrU
    http://www.youtube.com/watch?v=Lqh8e2KYIrU
    http://sheilanorturingan.blogspot.com
  • 53. 8b. Cebu Pacific’s Press Releases: The airline with flying colors
    WWF Award
    Changi Award:
    ISO 9001:2008
    Certificate:
    Marketing Communication Effectiveness Awards 2007
    http://sheilanorturingan.blogspot.com
  • 54. 8b. Cebu Pacific’s Online Press Releases
    CEB breaks 1M passenger record in one month
    CEB flies 2.8 million passengers in Q1, posts 12% increase
    CEB pilot best in the country; wins Airline Pilot of the Year award
    CEB website most popular travel site in the Philippines
    http://sheilanorturingan.blogspot.com
  • 55. 8d. Competitor’s PromoAir Philippines
    http://sheilanorturingan.blogspot.com
  • 56. 8d. Competitor’s PromoZest Air
    http://sheilanorturingan.blogspot.com
  • 57. 8d. Competitor’s PromoPAL
    http://sheilanorturingan.blogspot.com
  • 58. 8d. Competitor’s PromoSEAir
    http://sheilanorturingan.blogspot.com
  • 59. 8d. Why Cebu Pacific’s Promotions stand out
    • Roll out of promos almost every month
    • 60. Trademark low fares are being anticipated by budget travelers.
    • 61. The only airline who can provide the lowest fares and can fly the most passengers to the most destinations most frequently.
    http://sheilanorturingan.blogspot.com
  • 62. 9. Booking at your fingertips!
    • Online booking through its website
    • 63. Call center for Manila and Cebu offices
    • 64. Nationwide ticketing offices
    • 65. Partner Sales Agents
    • 66. CEB Biz for Corporate & Government Sales
    • 67. 3rd party Sales Outlets
    http://sheilanorturingan.blogspot.com
  • 68. 10. Cebu Pacific’s winning strategy: LOW COST PRODUCER
    Low Cost Producer
    Supply and Distribution Leverage
    Differentiation
    Niche
    http://sheilanorturingan.blogspot.com
  • 69. 10. Cebu Pacific’s winning strategy: LOW COST SERVICE
    Low Cost Producer through efficient operations:
    - youngest fleet, average of 2.5 yrs – less maintenance
    - E-ticketing – paperless ticketing
    - expanding network – increased flight frequency, more routes, more destinations
    - less comfort, more travel as more travelers choose thrift over luxury
    http://sheilanorturingan.blogspot.com
  • 70. 49
    SUMMARY
    http://sheilanorturingan.blogspot.com
  • 71. Steps 1 to 5Cebu Pacific targets the budget travelers
    Cebu Pacific’s travel base is the price-conscious young travelers.
    PTM wants more travel which may mean less comfort.
    Direct competitors are Airphil, ZestAir, SEAir and PAL.
    Opportunity of bringing air travel closer to more Filipinos.
    Market size for domestic passengers is 16M.
    http://sheilanorturingan.blogspot.com
  • 72. Discount Carrier is the Name of the Game
    Cebu Pacific offers year-round Low Fares, has more domestic destinations.
    Promo fares are the lowest, yet regular fares are more expensive.
    Cebu Pacific has captured worldwide audience through its website.
    Booking at your fingertips!
    Cebu Pacific dominated the market through its Low Cost Strategy.
    http://sheilanorturingan.blogspot.com
  • 73. 10 STEP Marketing Plan for CEBU PACIFIC AIRReferences
    http://www.philippines-travel-guide.com/ferry-list-philippines.html
    http://www.slideshare.net/lenilynne/go-lenilynne-v53-10-step-marketing-6946834?from=ss_embed
    http://loqal.ph/business-and-finance/2010/02/09/budget-carriers-boost-rp-airline-industry-growth/
    http://www.bworldonline.com/Research/populareconomics.php?id=0188
    http://www.mb.com.ph/articles/297732/cebu-pacific-air-targets-fly-12-million-passengers-2011
    http://www.mb.com.ph/articles/261113/cebu-pacific-now-rp-s-largest-airline-terms-passenger-flown-q1
    Domestic Airline Research by Canda, Flores-Gaspar,Guevarra, Turingan Zhou Xue “Vicky
    www.cebupacificair.com/
    http://sheilanorturingan.blogspot.com
  • 74. 53
    10 STEP Marketing Plan for CEBU PACIFIC AIR
    Sheilanor C. Turingan
    June 2011
    http://sheilanorturingan.blogspot.com