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THY CASE

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THY CASE

  1. 2. STRUCTURE OF PRESENTATION
  2. 3. HISTORY OF TURKISH AIRLINES <ul><li>Turkish Airlines was founded in Ankara in 1933 </li></ul><ul><li>First international flight was Ankara-Istanbul-Athens in 1947 </li></ul><ul><li>It was renamed Türk Hava Yolları A.O with a capital of 60 TL in 1956 </li></ul><ul><li>The company was reclassified as a “State Economic Enterprise” in 1984 </li></ul>
  3. 4. <ul><li>Singapore flight was the first far east flight in June,1986 </li></ul><ul><li>The capital of Turkish Airlines was 700.000 TL in March,1990 </li></ul><ul><li>First class service started . THT (Turkish Air Transportation) incorporated company merged with Turkish Airlines in September ,1993 </li></ul><ul><li>Turkish Airlines decided to join Star Alliance in 4th August,2006 </li></ul>
  4. 5. <ul><li>First commercial flight to Sydney was commit ted for the Olympic Games . New Frequent Flyer Program ‘‘Miles & Smiles’’ was launched in October ,2000 </li></ul><ul><li>Electronic ticketing (Ticketless Travel) implementation has begun for THY flight crew in 2003 </li></ul>
  5. 6. ...cont’d <ul><li>Turkish Airlines decided to raise the number of flying points from 131 to 231 as part of agreement with Lufthansa in 2006 </li></ul><ul><li>Turkish Airlines decided to join “Star Alliance” in 2006 </li></ul>
  6. 8. PEST ANALYSIS
  7. 9. POLITICAL FACTORS <ul><li>THY is a government-owned, national flag carrier </li></ul><ul><li>Labor agreement has powerful (Turkish Civil Union of Aviation) </li></ul><ul><li>D iscounters suit themselves and make money from receipts thanks to regulations of government </li></ul>
  8. 10. ...cont’d <ul><li>In 2002, the new Turkish Government announced, it would no t be subsidization for THY </li></ul><ul><li>The S tate P rivatization Administration launched a public share offering </li></ul><ul><li>Trust of financial markets without the need for government guarantees </li></ul>
  9. 11. ECONOMICAL FACTORS <ul><li>Ticket prices have risen because of the increasing in fuel costs </li></ul><ul><li>Air travel in Turkey will be the biggest growth market </li></ul><ul><li>THY sells tickets via the </li></ul><ul><li>Internet so that sales costs </li></ul><ul><li>can be minimized </li></ul>
  10. 12. ...cont’d <ul><li>T he number of airline companies will be diminished and the condition of market will change because airline firms in Europe fortifica t es </li></ul><ul><li>The number of travelling tourist from Europe to Turkey cut down due to the terrorism </li></ul><ul><li>International economic situation,or global crisis </li></ul>
  11. 13. SOCIAL FACTORS <ul><li>In international area, competitors use service culture enough to make their customers comfortable about the airline </li></ul><ul><li>They ha ve always been transaction- oriented, not customer oriented </li></ul><ul><li>Swine flu,climate conditions and crash in Amsterdam </li></ul>
  12. 14. ...cont’d <ul><li>People ’s lifestyle of transportation is changed by development in aircrafts </li></ul><ul><li>Service culture problem , It will take time </li></ul><ul><li>Special days </li></ul>
  13. 15. TECHNOLOGICAL FACTORS <ul><li>Satellite programming, wireless internet access, satellite monitors at every seat and seat –back personal video screens in mod ish aircrafts </li></ul><ul><li>Reservation on telephone and on the I nternet </li></ul><ul><li>THY uses IBM computers </li></ul>
  14. 16. ...cont’d <ul><li>The IT system of THY is the Tryon which is for reservation system. Turkish Airlines makes all procedures in th at </li></ul><ul><li>Sophisticated information system and infrastructure to optimize complex operations </li></ul><ul><li>Availibility of pay phones on the plane </li></ul>
  15. 18. SWOT ANALYSIS
  16. 19. <ul><li>THY has new fleets </li></ul><ul><li>Strong financial statement </li></ul><ul><li>Qualified staffs </li></ul><ul><li>Member of the Star Alliance </li></ul>
  17. 20. WEAKNESSES <ul><li>Poor promotion activities </li></ul><ul><li>Advertising problems </li></ul><ul><li>Brand loyalty is low </li></ul><ul><li>Higher prices </li></ul>
  18. 21. OPPORTUNITIES <ul><li>Cheap airline companies have limited international flights </li></ul><ul><li>THY is one of the fastest growing airline in Europe </li></ul><ul><li>Turkey is a preferable tourism country </li></ul><ul><li>Close to the Europe </li></ul>
  19. 22. THREATS <ul><li>Terrorist attacks </li></ul><ul><li>Discount airline companies </li></ul><ul><li>New entrants in domestic market </li></ul><ul><li>Increasing costs </li></ul>
  20. 24. INDUSTRY ANALYSIS
  21. 25. COMPETITOR ANALYSIS <ul><li>DOMESTIC COMPETITORS INTERNATIONAL COMPETITORS </li></ul>
  22. 26. ...cont’d
  23. 27. ...cont’d Domestic Competitors THY Pegasus Onur Air Atlas Jet Pricing - + + + Service Quality + - - - Number of Flying Points + - - - Age & Width of Aircrafts + - - - Financial Ability + - - -
  24. 28. PRODUCT LIFECYCLE T.H.Y
  25. 29. ...cont’d <ul><li>It operates a network of scheduled services to 120 international and 37 domestic airports </li></ul><ul><li>Its fl eet consists of 133 aircraft s & also 25 aircrafts were ordered </li></ul><ul><li>In 2008, its total revenue was US$ 4.5 billion </li></ul>
  26. 30. PORTER’S GENERIC STRATEGIES
  27. 31. ...cont’d <ul><li>Low-cost Airline Subsidiaries </li></ul><ul><li>Star Alliance </li></ul><ul><li>Other Subsidiaries such as; Do & Co and Tgs Ground Services </li></ul>
  28. 32. Low-cost leadership strategy Differentiation strategy <ul><li>Low-cost airline subsidiaries </li></ul><ul><li>Partnership with Opet </li></ul><ul><li>Using secondary airports in main cities </li></ul><ul><li>Star Alliance </li></ul><ul><li>Miles & Smiles </li></ul><ul><li>E-ticket </li></ul><ul><li>Direct flights from Russia to Antalya </li></ul><ul><li>Reservation Call Center </li></ul>
  29. 33. THY
  30. 34. STRATEGIC PARTNERSHIP & ALTERNATIVES
  31. 35. <ul><li>Increase in revenues </li></ul><ul><li>Decrease in costs </li></ul><ul><li>Market development </li></ul><ul><li>More flight points </li></ul><ul><li>Ability to use lounges of member airlines </li></ul><ul><li>Higher frequencies </li></ul><ul><li>One ticket </li></ul><ul><li>Ability to connect baggages to destination point </li></ul>BENEFITS OF STAR ALLIANCE MEMBERSHIP For Turkish Airlines; For Customers;
  32. 36. SPONSORSHIP http://www.youtube.com/watch?v=nxgPx4TWMWg
  33. 38. <ul><li>Low prices of Discount Carriers </li></ul><ul><li>Do not implement a Customer-oriented Strategy </li></ul>Main Problems
  34. 39. Related Problems <ul><li>The price structure has a big space in the consumers’ minds </li></ul><ul><li>High price tickets comparing with the competitors </li></ul><ul><li>High expenditures of Turkish Airlines </li></ul><ul><li>The economic crises </li></ul><ul><li>Lack of customer services </li></ul>
  35. 40. RECOMMENDATION <ul><li>They should focus on the east side of Turkey </li></ul><ul><li>They should improve their services about the flyers’ satisfaction </li></ul><ul><li>For attracting the clients, Turkish Airlines may give importance to Customer Service Culture </li></ul>
  36. 42. CONCLUSION <ul><li>Today, you can fly with Turkish Airlines’ aircrafts to 74 countries with 120 airports </li></ul><ul><li>In order to flight safety, reliability, product line, service quality and competitiveness ,Thy is the 4th rank in Star Alliance </li></ul><ul><li>You can fly to 36 cities in Turkey </li></ul>

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