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 />Bohong Li<br />June 2011<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 />
  3. 3. Summary: Steps 1 to 5<br />Cebu Pacific’s target market are budget-conscious travelers<br />Gap is there are other brands who can offer lower cost fares and possibly better service<br />Cebu Pacific’s direct competitors are: AirPhilExpress, Zest Air, Philippine Airlines, and AirAsia Philippines<br />Who want affordable, no-frills travel experience.<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 />
  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 fliers need low-cost airfares to satisfy social and personal needs of traveling<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 />
  5. 5. Primary Target Market<br />Age 21-35; Male and Female; Single or Married; Social Class BC<br />Employed or Starting to work; budget-conscious;<br />Avid leisure traveler; almost always with loved ones (friends/family/significant other)<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 />
  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 />
  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 />Fare Rates, Comfort, Availability of Routes, Travel Time, Companions’ Characteristics/Personalities, Travel Packages<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 />
  10. 10. Benefit positioning vs. brand map for Domestic Airlines<br />Benefit Positioning vs. Brand Matrix<br />*C/S: Code-share<br />
  11. 11. 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 />
  12. 12. 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 />
  13. 13. Cebu Pacific’s websitehttp://www.cebupacificair.com<br />
  14. 14. Competitors’ Websitewww.philippineairlines.com/ <br />
  15. 15. Competitors’ Websitehttp://www.zestair.com.ph/<br />
  16. 16. Competitors’ Websitehttp://www.airphils.com/<br />
  17. 17. Competitors’ Websitehttp://www.flyseair.com/<br />
  18. 18. Print Ads – domestic airlines<br />
  19. 19. 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 />
  20. 20. Price Comparison<br />Although some airlines are cheaper than CP in other destinations, CP is consistent in maintaining affordable airfare in all routes<br />
  21. 21. Modes of Communication<br />
  22. 22. Sales Promotions<br />
  23. 23. Advertising<br />
  24. 24. Events & Experiences<br />
  25. 25. Advertising-Competitors<br />
  26. 26. Sales Promotions-Competitors<br />
  27. 27. Word of Mouth<br /><ul><li>Promo fare advertisements sent via email are late at times
  28. 28. Individuals could just learn about it through friends
  29. 29. Or perchance they’ve come upon an ad on the newspaper</li></li></ul><li>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 />
  30. 30. Cebu Pacific’s main distribution channel is the internet<br /><ul><li>Three principal distribution channels:
  31. 31. Internet
  32. 32. Booking sales office, call centres, client accounts
  33. 33. Third-party sales outlet
  34. 34. Distributors
  35. 35. General Sales Agents
  36. 36. Wholesalers and Preferred sales agents</li></li></ul><li>Cebu Pacific has many payment options<br />Cash and Credit Card Transaction, Over the Counter, ATM, Online Banking, (Mobile) Phone Banking<br />
  37. 37. Cebu Pacific’s Generic Winning Strategy<br />Low Cost Producer<br />Supply and Distribution Leverage<br />Differentiation<br />Niche<br />
  38. 38. 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 />
  39. 39. 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 />
  40. 40. Summary: Steps 1 to 5<br />Cebu Pacific’s target market are budget-conscious travelers<br />Gap is there are other brands who can offer lower cost fares and possibly better service<br />Cebu Pacific’s direct competitors are: AirPhilExpress, Zest Air, Philippine Airlines, and AirAsia Philippines<br />Who want affordable, no-frills travel experience.<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 />
  41. 41. 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 fliers need low-cost airfares to satisfy social and personal needs of traveling<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 />
  42. 42. 10 STEP Marketing Plan for Cebu Pacific<br />Bohong Li<br />June 2011<br />

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