Delta airlines

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Case study of Delta Airlines

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Delta airlines

  1. 1. CASE STUDY :
  2. 2. GROUP MEMBERS:- SUMIT PAUL SINGH (10MI31018) POLAMPALLY DHEERAJ (11CH10036) SOURABH CHANCHAL (11CH10046) SUNIL KUMAR (11CH10047) SUPRITO BISWAS (11CH10048) ASHISH MAHAWANE (11CH30006) NAWAZ AHMED KHAN (11CH30012) SAVA RISHABH SHARAD (11CH30020)
  3. 3. INTRODUCTION Overview of the company •Major American airline headquartered in Atlanta, Georgia, United States. •Founded in May 30, 1924. •Operates an extensive domestic and international network. •Delta operates a fleet of more than 700 aircraft. •Slogan – “ Keep Climbing “ •Delta employs approximately 80,000 people. • Was the world's largest airline in terms of fleet size in 2011.
  4. 4. What makes them successful ? • Expansion – Keep a permanent control of growth expansion. • Make good decisions in route selection and hubs location. • Be service oriented. • They have a strong operation Management. • Reactive in terms of prices with respect to Competitors. • They offer lower fares and frequent flier program.
  5. 5. General Targeting Strategy • Delta Airlines follows Single Segment Strategy. • Delta currently targets more on business fliers. • To reach its target market Delta Airlines is conveying its message that it delivers everything business fliers need through advertising in broadcast media and other national media. • Differentiation Strategy: The extensive flight service and brand legacy of Delta Air Lines is recognized throughout the airline industry as unique.
  6. 6. Benefits of Single Segment Marketing • Company can gain more competitive edge. Their major competitors being – United Airlines, Northwest Airlines, American Airlines, British Airways • The company can create more fine tuned offerings at the right price for the specific market segments. • The company can have a clear picture of the competitors in that particular segment.
  7. 7. Advertising and Promotion • Advertising Campaign and Promotional events. Media : Communicate market specific information throughPrint Media(Business Newspapers) Broadcast Media (TV Ads Targeting Business Travellers) Network Media electronic Media Display Media.
  8. 8. Promotional events Events : Organize promotional events for its premium customers. For e.g – Enter Michael Buble, who will bring his To Be Loved Tour to Seattle's Key Arena on Nov. 15 2013, accompanied by an exclusive VIP reception prior to the show for 100 Delta customers, a special meet-and-greet for 20 guests, and premium ticketing and seats for guests at the show.
  9. 9. Emphasizing the business Traveller segment The various segments on which a company can emphasize are : •Business travellers. •Government and international organization travellers. •Western European personal and leisure travellers. •Seasonal (primarily summer, with some limited niche markets in the winter period) holiday travellers.
  10. 10. Market Analysis of share of segments Though the share of Business Travellers is less but the profit gained from this segment is much greater which is the reason Delta emphasizes on Business Travellers
  11. 11. Why Delta emphasizes on Business Travellers • Business travellers are very profitable for airlines because they tend to buy their tickets at the last minute when prices are higher and their schedules are not flexible enough to change flights. • Frequency of the Business Travellers is high. • Percent sales: The majority of their profit comes from business travellers. • Price Sensitivity: The business travellers are much less sensitive to the price because they need to reach their destination regardless of the price. • What Customers want: This demographic wants to get to the destination regardless of the price. They are more price inelastic.
  12. 12. Comparison between business travellers and leisure travellers Business Travellers Leisure Travellers • The business travellers are much less sensitive to the price because they need to reach their destination regardless of the price. • They are more price inelastic. • Leisure travellers are not nearly as profitable because they are more willing to change flights and/or modes of travel based on prices. • The leisure traveller segment is very price elastic. • This market segment requires a cost leadership method.
  13. 13. Needs of a Business Travellers Needs Actions • Awareness • Personalized Service. • Flight Convenience. • Communication. • Low Prices. • Advertising Campaign, emphasizing on sensitivity and understanding. • Quality service and personal concern. • Increased number of flights with wide choice of destinations. • Provide Wi-Fi Facility, Satellite TV. • Lowered the fares without compromising the quality.
  14. 14. Actions • Introduced the discount of 10% in frequent and busy routes and 45% for Less travelled routes. • Lowered the mileage requirement of frequent flier program from forty thousand miles to thirty thousand miles. • Considering installation of offices in the air – McDonell Douglas is creating on board offices with desks, FAX, computers, phones.
  15. 15. Conclusion • The future of Delta Air Lines appears to be bright. Delta Airlines being the 3rd oldest Airlines in America but still survives in the current days and remains to be the oldest American Airlines which runs profitably till date. • Delta has been an innovator of several customer-friendly features . • Delta’s strong operation management, service orientation, Timely expansions made it to be one of the major Airline in America. • Delta gains competitive edge by following segmentation strategy. • Delta can still work on their strategy to improve its profit margin.

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