Business Markeiting

1. SPD4464 Business Marketing
Presented by:
Chau Ho Lam (13006367s) Wong Wai Kin (13610687s)
Yip Yun Cheong (13609260s) Yim Ho Lun (13613978s)
Zhang Kan (13609928s)
AboutHAECOSTPRMMarketingStrategy

2. Airframe
Service
Line Service
Engine
Service
Component
and Avionic
Service
Inventory
Technical
Management
and Fleet
Technical
Management
About HAECO
AboutHAECO

3. About HAECO
AboutHAECO
18 subsidiaries & affiliates

4. Segmentation
Macro-segmentation
• BusinessTypes
• Large Aircraft CorporationsSize
• HeavyUsage rate
• Centralized
Structure of the
procurement function
• Facilitating GoodsService application
• Straight rebuy & Modified rebuyPurchasing situation
STP

5. Segmentation
Micro-segmentation
key criteria
• quality-focus
purchasing
strategies
• optimizers
importance of
the purchases
• high strategic
STP

6. Targeting
Concentrated strategy
STP
Only targets Airliners / aircraft owners
 The service is providing Maintenance, Repair and
Overhaul (MRO) for flight

7. Positioning
 Experienced
 High quality
aircraft service provider for airlines
• Provide excellent services and
make profitRight goal
• complete and high quality
aircraft service system
rivals are difficult to match
Unique
value
proposition
strategic positioning:
STP

8. Positioning
Competitive Analysis
• Other companies
like CASL also
provide full range
services
• Increasing
demand in
customized
services
• Do not provide
service in Europe
• Wide range and
high quality
service
S W
TO
STP

9. Broad range of service
Narrow range of service
Less Point of Service More Point of Service
Positioning Map
STP

10. Relationship Marketing
RM

11. Relationship with customers
(Transactional Exchanges)
Main customers Services
MRO service on A,B,C-checks.
Technical assistance, maintenance and
cabin services.
High quality on-time redelivery.
RM

12. Web Portal
System
Real-time
check
Comprehensive
range of data
Trace process
of repair orders
Relationship with customers
(Value-added Exchanges)
1. Web Portal System
RM

13. 747-400 Boeing
converted freighter
program
Fire safety
induction
system &
smoke control
system
200 hours
of in-flight
testing
2. Additional Flight Testing
Relationship with customers
(Value-added Exchanges)
RM

14. 3. Aircraft Lease Return Support
• created a special taskforce
• be a middleman between airlines
Relationship with customers
(Value-added Exchanges)
RM

15. HAECO
Thai
Airways
Strategic
alliance
Relationship with customers
(Collaborative Exchanges)
RM

16. Relationship with customers
(Collaborative Exchanges)
RM

17. Dunlop Taikoo Taikoo-thrust reversers HAESL-engine parts
Taikoo-Blocker
door overhaul
TALSCO-shipping
pallets
TALSCO-set landing gear
All electro-
mechanical
units
Eclectic
breaking
system
Source: http://www.haeco.com/HAECOGroup/group-
companies/dunlop-taikoo.aspx
Relationship with suppliers
(Collaborative Exchanges)
RM

18. Search
cost
Risk
Social
cost
Takes time and effort
to search for
alternative
maintenance service.
Exists many
uncertainty.
Conducts Intensive
technique skills.
Switching costs
HIGH to
customers
RM

19. Relationships of marketing mix(s)
Product
(Services)
People Physical
evidenceAwards = motivational factors
Marketingstrategy

20. Services of HAECO
Sourced from HAECO’s 2013 Annual Report
Marketingstrategy

21. Airframe
Service
 maintenance checks
 cabin reconfiguration
 in-flight entertainment system
 avionics modification
 structural modification
 winglet modification
 lease-return checks engine services
 in-house support
 Transit Checks and Certification
 Ramp Services
 Engine Services
 AOG Services and Aircraft
Interior Enhancement Solutions
(ArIES)
Marketingstrategy

22. Engine
Service
 Rolls-Royce Engines
 GE-Aviation Engines
 Pratt & Whitney Engines
 Component and Avionics Overhaul
 Landing Gear Overhaul
 Aerostructures Repair
 Technical support
 Field Service Support
Component
and Avionic
Service
Marketingstrategy

23. Inventory Technical
Management and
Fleet Technical
Management
 Inventory management
 Component Engineering & Repair Management
 24/7 AOG Support
 Customization of Aircraft Maintenance
Programme (AMP)
 Certificate of Airworthiness Application
 Maintenance Planning & Scheduling
 Maintenance Control
Marketingstrategy

24. Evaluation on product (Services) strategy
• Criterion:
Facilities
Location
Scope of
Service
 Compare with China Aircraft Services Limited (CASL) and Pan Asia
Pacific Aviation Services Limited (PAPAS)
Marketingstrategy

25. Scope of Service
Company/
Services
HAECO CASL PAPAS
Airframe ✓ ✓
Line ✓ ✓ ✓
Engine ✓ ✓
Component &
Avionics
✓ ✓
Inventory & fleet
technical
management
✓ ✓ ✓
 HAECO has competitive advantages over PAPAS but facing high level of rivalry
threats from CASL.
Marketingstrategy

26. Facilities Location
Company/
Facilities
location
HAECO CASL PAPAS
ASIA ✓ ✓ ✓
AMERICA ✓
EUROPE
HAECO enjoys competitive advantages as the target customers extends from regional
airliners to international airliners.
Marketingstrategy

27. Improvements on product (service)
strategy
• Why improve?
Maintain
competiveness
Differentiate
from
competitors
Marketingstrategy

28. 1. Increase the degree of customization to
differentiate from CASL
More
low cost
Airliners
Industry
trends:
Leasing
aircraft
Modific
ation
Specialized
unit offers
tailored
solution
Marketingstrategy

29. 2. Expend the business locational boundaries to
maintain competiveness
 Penetrate into the Europe market
 Invest on overseas facilities
 Begin with popular destination: huge demand on MRO services
London
Paris
Frankfurt
Marketingstrategy

30. People of HAECO
Enhance
morale
Workshops
Increase
professionalism
License exam
Strengthen
delights
Health program
• Retain current staff
Marketingstrategy

31. People of HEACO
Recruit new Staff
graduate trainee
program
practical training
opportunities for
IVE students
aircraft
maintenance
mechanics trainee
(AMMT) program
Marketingstrategy

32. Evaluation on People strategy
 Achieve “Honour of Manpower Developer”
from the Employee Retraining Board (ERB)
Marketingstrategy

33. Evaluation on People strategy
Poor working condition
Poor benefit package
Cannot attract new blood
Affect the capacity
Marketingstrategy

34. Improvement on People strategy
Organization
structure
Strengthen
communication
Simplify
Stress and
Relaxation
workshop
Reinforce team
spirit & cohesion
force
Organize
Employment
policy
More beneficial
payment package
Higher incentives
Revamp
Marketingstrategy

35. 1. Line
Maintenance
award
3.
Sustainability
award
2. Approval
award
Physical evidence Of HAECO
Marketingstrategy

36. • Airframe maintenance : ranked second in the
“Top 10 Airframe MROs”
• Line maintenance : “Excellent Performance
Award 2012”
• Engine overhaul : Rated “gold” under the
Rolls- Royce’s Centre
1. Line maintenance award
Marketingstrategy

37. 2. Approval award
• HAECO product obtain approval over than 30 Countries
• European Aviation Safety agency (“EASA”) & Hong Kong Civil
Aviation Department (“HKCAD”)
Marketingstrategy

38. 3. Sustainability award
• A silver medal from CLP Power Hong Kong
• Bronze medal at the Hang Seng Pearl River
Delta Environmental
• "5 Year+ Caring Company" accreditation
Marketingstrategy

39. Evaluation on Physical evidence
strategy
Gain prizes from industry every year
Cover widest range of approval
 Neglect “employee” in sustainable development
Marketingstrategy

40. Improvement on
Physical evidence strategy
• Allocate more resources on internal affairs
• Create a balanced work of life
• Refine working environment
Marketingstrategy