10 step Marketing Plan

1. 10-STEP MARKETING PLAN FOR
PHILIPPINE AIRLINES
Group 4
MARKMA V69
APRIL 2017

2. Disclaimer
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.

3. Steps 1 to 5:
PAL targets corporate citizens
Step 1
Primary target market are business fliers/travelers
from mid to top positions in managed/non managed
companies aged 35 – 45 years old
Step 2 Who wants to have a spontaneous travel experience
Step 3
Can choose to travel via Cebu Pacific who is a direct
competitor
Step 4
Market gap exists in the increasing domination of
low-cost carrier (Cebu Pacific)
Step 5
Market size for business fliers/travelers 8.567 BN

4. Steps 6 to 10:
Generic winning strategy is differentiation
Step 6
PAL is a full cost carrier that offers lounge access,
business class and code-share flights, in-flight meals and
entertainment and Mabuhay Miles loyalty program
Step 8
Uses commercial and print ads, events, online seat sales,
co-branded credit card promotions, word of mouth
Step 9
PAL’s route network covers 30 domestic destinations,
flights may be booked online or thru a travel agent
Step 10
Generic winning strategy: DIFFERENTIATION
RStep 7
Round trip domestic flights ticket prices range from
P3,000 to P9,000

5. 1. PAL wants to target business
travelers
• Business travelers aged 35 – 45
years old
• Holding mid to top positions
• Social class A, AA, AAA, B
• Travels frequently for business
(attend conference, training)
• Often travel alone or with co-
workers
• Always on the go, technology
savvy
• Values convenience, safety, time

6. 2. Business travelers want to travel in
comfort, style and safety
I’m flying the premium airline carrier
I want to have a safe flight, arrive
and leave on time

7. 2. Business travelers’s needs, wants
and demands
D
W
N
Business travelers need to get to their point
of destination comfortably, safely and on
time
An airline that gives full service and
premium amenities to travelers
An airline that gives full service amenities
and benefits, avoids delays and has the
best safety record

8. 3a. Competitor analysis
Direct
competitor
Indirect
competitors

9. 3a. Variables that affect the airline
of choice
Variables
 Price
 Convenience
 Routes served
 Safety record
 On-time performance
 Loyalty program and rewards

10. 3b. PAL is the premium brand in the
local airline industry
Price/service
matrix
Full service Basic service
High price
(business class)
Average price
(economy class)
Low price
(promo fare)
PAL BUSINESS
CLASS
CEBPAC
PAL
Economy Class
Air Asia
Zest

11. 3c. PAL is positioned to fulfill the needs
of the travelers that fly for business with
the Age Range 35-45
FUNCTIONAL BENEFIT PAL CEBPAC
Air-Asia
Zest
Premium Lounge Access (COMFORT)
Business Class (CHOICE)
Best Safety Record (SAFETY)
High Availability (USUALLY NOT SOLD OUT)
More Destinations (CHOICE)
Airline Membership & Miles Redemption
(LOYALTY)
Seat Sales (PRICE)
Exclusive Terminal (LESS DELAYS)
Cheap Price (PRICE)

12. 4. Where’s the gap???
• Flyers who use other airlines for WORK because of
the perception of PAL as more expensive
• Flyers who value amenities but are unaware that PALs
prices are competitive
• Loss of share to CebPac for those flying for work
• 2.79BN pesos of share that CEBPAC gets from that
demographic

13. 5. Total Market Size for Demographic
• Total Sales of CEBPAC for Passengers 46.594BN
• 6% of population is 35-44 = 2.79 BN
• PAL’S GROSS INC from passengers – 96.29BN
• 6% of population is 35-44 = 5.77 BN
• TOTAL SHARE for this Demographic = *8.567 BN
*this assumes that most of these individuals fly for work

14. 5.A Company Data
• PAL’S GROSS INCOME from passengers – 96.29BN
• 6% of population is 35-44 = 5.77 BN

15. 5. B Competitor Data
• Total Sales of CEBPAC for Passengers 46.594BN
• 6% of population is 35-44 = 2.79 BN

16. 5.C Consumer Data (Estimate)
• Total Sales of CEBPAC for Passengers 46.594BN
• 6% of population is 35-44 = 2.79 BN
• PAL’S GROSS INC from passengers – 96.29BN
• 6% of population is 35-44 = 5.77 BN
• TOTAL SHARE for this Demographic = *8.567 BN
*this assumes that most of these individuals fly for work

17. 6a. Philippine Airlines THE BEST AMONG
THE REST
 Long-standing figure in local aviation.
 Fares include meals or snacks for PAL flights for both economy
and business class seats.
 For keeping passengers entertained in international flights, PAL
has introduced amenities such as their inflight entertainment
system called myPAL e-Suite. The inflight entertainment is free,
passengers just need to install the MyPAL app on their devices
which is also available for free download.
 The carrier is a Full Service Airline with a logo using Philippine
Flag Colors. It uses an exclusive terminal and has its own
lounge and membership offering.
 Mabuhay Mile Members have priority

18. 6b. PAL vs Competition

19. 7a. Price Check for a 4-day business trip
(April 18-21, 2017)

20. 7b. Price comparison
(Mnl to Ceb/ Ceb to Mnl)

21. 7b. Price comparison
(Mnl to HK/ HK to Mnl)
1 USD = 50 PHP

22. 7b. Price comparison
(Mnl to Dxb/ Dxb to Mnl)
1 USD = 50 PHP

23. 8a. Which of these modes does
Philippine Airlines use?
** Pls. rank most used, 1-highest use
1 2
3

24. 8a. Events and experiences
http://www.philstar.com/cebu-
business/2017/01/09/1660860/pal-official-carrier-65th-
miss-universe
http://www.gmanetwork.com/news/stor
y/393012/money/companies/pal-is-
official-carrier-for-pope-francis-phl-visit

25. 8b. Advertising
https://www.youtube.com/watch?v=JqvQYI
II2bM

26. 9. Bookings and destinations
Philippine Airlines travels to 55 destinations and a total of 82
destinations with code shares and subsidiaries. It is online so the
product is available everywhere.
Bookings can also be done via the following:
• PAL Offices
• Travel Agents
• Mobile app
• Designated corporate booking access (for business travels)
Payments can be done via the following:
• Banks (AUB, BDO, PNB, UnionBank)
• Bayad Centers, SM Bills Payment Center
• Cebuana Lhuillier, M Lhuillier
• 7-11 Convenience stores, Robinson’s Dept Stores

27. 10. Differentiation
 Availability and Accessibility
• Almost same number of domestic and int’l destinations (29
domestic and 52 international) but with more strategic
coverage not available in CebPac namely:
o Canada (7 destinations)
o London
o US - Los Angeles, NY, Hawaii, Saipan (only Guam under
CebPac)
o Australia - Melbourne, Brisbane, Cairns, Darwin (only
Sydney under CebPac)
o New Zealand
o Turkey
o Papua New Guinea

28. 10. Differentiation
 Legacy Airline – the first and only flag carrier. Carried important
people including past presidents and current president of the
Philippines.
 Multiple Class Options – Choice
 Mabuhay Miles Membership - Loyalty

29. 10. Differentiation
 Codeshare agreements with other airlines
Passengers on code-share flights benefit by receiving a boarding
card for both flights at their point-of-origin, onward baggage
transfer, and a more seamless experience. Lounge access and
mileage accrual may also be available.
Codeshare partners include:
o Cathay Pacific
o Etihad Airways
o Gulf Air
o ANA Airlines
o Malaysia Airlines
o West Jet (Canada)
o Turkish Airlines
o China Airlines

30. Steps 1 to 5:
PAL targets corporate citizens
Step 1
Primary target market are business fliers/travelers
from mid to top positions in managed/non managed
companies aged 35 – 45 years old
Step 2 Who wants to have a spontaneous travel experience
Step 3
Can choose to travel via Cebu Pacific who is a direct
competitor
Step 4
Market gap exists in the increasing domination of
low-cost carrier (Cebu Pacific)
Step 5
Market size for business fliers/travelers 8.567 BN

31. Steps 6 to 10:
Generic winning strategy is differentiation
Step 6
PAL is a full cost carrier that offers lounge access,
business class and code-share flights, in-flight meals and
entertainment and Mabuhay Miles loyalty program
Step 8
Uses commercial and print ads, events, online seat sales,
co-branded credit card promotions, word of mouth
Step 9
PAL’s route network covers 30 domestic destinations,
flights may be booked online or thru a travel agent
Step 10
Generic winning strategy: DIFFERENTIATION
RStep 7
Round trip domestic flights ticket prices range from
P3,000 to P9,000

32. Thank you for flying with us.