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Sri LanKan AIRLINE

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Sri LanKan AIRLINE

  1. 1. ; MARKETING ANALYSIS OF SRI LANKAN AIRLINE Hospitality and Tourism Marketing Strategies Assignment DILANI JEEWANTHI CTH SM# 721001 THAMES COLLEGE/SRI LANKA OCTOBER 2013
  2. 2. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 2 CONTENTS 1: INTRODUCTION.................................................................................................................... 3 1.1 INTRODUCTION TO SRI LANKAN AIRLINES................................................................ 4 1.2 VISION AND MISSION STATEMENT OF SRI LANKAN AIRLINES................................ 6 1.2.1 Vision .......................................................................................................................... 6 1.2.2 Mission ........................................................................................................................ 6 2: DISCUSSION.......................................................................................................................... 6 2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES............................................................... 6 2.2 MARKETING MIX OF SRI LANKAN AIRLINES.............................................................. 7 2.2.1 Products ....................................................................................................................... 7 2.2.2 Price............................................................................................................................. 9 2.2.3 Place............................................................................................................................ 9 2.2.4 Promotion................................................................................................................... 10 2.2.5 People ........................................................................................................................ 11 2.2.6 Process....................................................................................................................... 12 2.2.7 Physical Evidence ....................................................................................................... 12 2.3 SEGMENTATION, TARGETING& POSITIONING OF SRI LANKAN AIRLINE............. 13 2.3.1 Segmentation.............................................................................................................. 13 2.3.2 Targeting.................................................................................................................... 15 2.3.3 Positioning ................................................................................................................. 15 2.3.4 Major Segmentation Variables for Consumer Markets................................................... 14 2.3.5 Positioning Map................................................................ Error! Bookmark not defined. 2.3.6 Competitors ................................................................................................................ 16 2.4 ANSOFF’S MATRIX........................................................................................................ 17 2.4.1 Market Penetration...................................................................................................... 18 2.4.2 Market Development................................................................................................... 19 2.4.3 Product Development .................................................................................................. 20 2.4.4 Diversification ............................................................................................................ 20 2.6 MARKETING LEADERS STRATEGIES APPLIED BY SRI LANKAN AIRLINES ........... 21 2.6.1 Defense Strategies....................................................................................................... 21 2.6.2 Brand Image Strategies................................................................................................ 21 2.7 MARKETINGCOMMUNICATION ANDPUBLIC RELATION STRATEGIES APPLIED BY SRI LANKAN AIRLINES................................................................................................ 22
  3. 3. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 3 2.7.1 Pull Strategies............................................................................................................. 22 2.7.2 Push Strategies............................................................................................................ 22 2.7.3 Promotional Mix......................................................................................................... 23 2.7.4 Public Relation ........................................................................................................... 23 2.8 NETWORKING,E- MARKETINGSTRATEGIES APPLIED BY SRI LANKANAIRLINES .............................................................................................................................................. 24 2.8.1 Network Marketing Strategies............................................ Error! Bookmark not defined. 2.8.2 E- Marketing Strategies................................................................................................... 24 2.9 SRI LANKAN AIRLINE CSR WORKS............................................................................. 24 2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE............................................................ 24 2.11 VIRAL MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES............... 25 2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES..... 25 2.13 CUSTOMER LOYALTY PROGRAMS........................................................................... 25 2.14 RECOMMENDATIONS................................................................................................. 26 2.14.1 Marketing Mix Recommendations.............................................................................. 26 2.14.2 Segmentation, Targeting and Positioning Recommendations ........................................ 28 2.14.3 Ansoff’s Matrix Recommendations ............................................................................ 28 3: CONCLUSION...................................................................................................................... 29 REFERENCE............................................................................................................................. 30 Figure 1 SWOT ANALYSIS Figure 2: Customer segmentation Figure 3: Segmentation Figure 4: Competitor Analysis Figure 5: Ansoff Matrix.
  4. 4. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 4 1: INTRODUCTION 1.1 INTRODUCTION TO SRI LANKAN AIRLINES Sri Lankan Airlines is the national airline in Sri Lanka managed by the government and based at the Bandaranaike International Airport and Mattala Rajapaksa International Airport. Sri Lankan Airline is a member of IATA and ICAO, flying over 34 destinations around the world. It is a famous airline especially in Asia and Europe which was founded in 1947 as Air Ceylon for the last 66 years they expand their services to many areas such as introducing a budget airline Mihin Lanka, online facilities, engineering department, selling holiday packages, air taxi (domestic airline), micro tourism, airline training and technical training. The other services include the cargo and catering. Sri Lankan Airlines has been numerously awarded for their contribution of providing safe, reliable, comfortable and punctual services. The aim of the organization is to provide high customer service, best traveling experience and satisfaction for the customer which will create a good reputation. Achieving those goals ultimately developed the tourism and the economy of the country. The aircrafts consists of economy and business class seating’s, with the latest technologies on board ranging from onboard TV, radio, games and refreshment services. All seats are luxurious and comfortable; the difference in the Business class is that there are flat-bed seats,special meals, and cocktail personal services. Then there are audio and video system and video games for entertainment for the passenger. The airlines have their own catering service and it provides the facilities for other airlines operating in the international airport. Every day they cater 25,000 meals and operate 24 hours and 365 days of the year. There are 800 employees working in the kitchen. It also includes fine –dining restaurant and they
  5. 5. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 5 provide meals for the transit hotel at airport. Principally they have fast reservation system to book through e-ticketing and time scheduling of check in. The advantage of this facility is that the customer can easily plan their traveling dates and time without tour operators using their own laptop or PC .There is diverse work force of 5900employees in Sri Lanka and overseas. These employees complete the training at IATA and the airline has a training school which offers two courses. They are, IATA training and the technical training. Mainly they promote the tourism with introduction of many programs such as tour packages, air taxi service for tourist attractions and micro tourism. According to that information, I believe the Sri Lankan Airline is one of the best organizations to implement and research marking strategies. There is lots of advantages for choosing this topic. The main reason is that the airline is directly linked to many businesses especially, the tourism business. Today, the tourism industry is developing faster than ever before. Each year nearly 1000000 tourists visit Sri Lanka and it is very important to provide efficient transportation to these tourists. Sri Lankan Airline has identified this and has expanded their service with domestic airline. This expands as well as the increase of tourist arrivals has resulted in the growth of other areas such as such as export and import, banking and telecommunication. Every year it creates many job opportunities and it increases the income level of all employees.
  6. 6. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 6 1.2 VISION AND MISSION STATEMENT OF SRI LANKAN AIRLINES 1.2.1 Vision  To be the most preferred airline in Asia. 1.2.2 Mission  We are in the air transportation business. We provide our customers with a reliable and pleasant travel experience. We provide our business partners with a variety of innovative, professional and mutually profitable services. We meet Shareholder expectations of profitably marketing Sri Lanka and contributing towards the well- being of Society. We are a competent, proactive and diligent team. Our contribution is recognized and rewarded. Source: http://www.srilankan.com/en_uk/coporate/vision-and-mission 2: DISCUSSION 2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES. STRENGTH  Sri Lankan Airline is a reputed Brand Name.  Customer Reputation of Service standard  Safety recorders and fast travelling.  Fixable traveling cost.  Good image of Sri Lankan hospitality service.  AITA training staff  Attractive food and beverage services. WEAKNESS  Flight is not well maintained.  Flights are delayed and cancelled.  Cabin crew’s uniform hasn’t changed in a long time.  Still the airline dose not gets any profit.  Large number of employees works at Sri Lankan Airline  Most of flights operate in short haul.  Communication barriers
  7. 7. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 7 OPPORTUNITY  The government’s airport developing project.  The government’s tourism developing project  The government has decided to buy new aircraft next year.  New air routes have been decided for flying  Increase in business travelers in Sri Lanka. THREATS  Increasing fuel cost  Increasing cost of employee’s salaries  Competition with other airline  Rising cost of sales and marketing Figure1 SWOT ANALYSIS 2.2 MARKETING MIX OF SRI LANKAN AIRLINES 2.2.1 Products Sri Lankan airline identified the expectations and values of the customers and they offer the best high standard service to the customers to make them feel comfortable and satisfied.  Destinations:Europe, Middle East, South Asia, South Asia Far East, Australia, North America, Canada and Africa
  8. 8. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 8  Cabin Services:The main product is the cabin services, the cabin is design for two main areas Business class and Economy class and the airline carter for all classes ‘passengers as their best. In the flights, television for every seat with audio and video facilities along with a video game system. Source: http://www.srilankan.com/en_uk/flying- with-us/business-class  Cargo Services: The other service is the cargo services to the countries of Europe, Middle East, South Asia, and South Asia Far East. Source: http://www.srilankancargo.com  Catering Services: The airline handles all food and beverages from their catering services. Fine dining restaurant is also present.
  9. 9. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 9  Other Services: The remaining of the important services of this airline is E ticketing, air taxi, information desk, holiday packages, MICE tourism, IATA training, technical training etc.  Short Time Travel: There is lot of flights operating to Middle Eastern markets. The reason for this is there are Sri Lankan employees working in these countries and some people fly to those counties for business and leisure. This market price is low. (Major reason is the fuel cost not being effective).  Depend on the Special Service:  Child care or medical treatment available. Extra services such as wheel chairs and stretcher cases for them for extra payment. 2.2.2 Price The price depends on the destination they choose to fly (Long or short hours flying).  Operation cost: Operation cost to fly one air craft set for one kilometer. Passenger Load Factors -The total revenue of passengers for kilometers is divided by availability of the seat kilometers.  Categories: High price for business class low price for economy. Discounts for Middle East, South Asia Far East for business class.  Travel agent commission 2.2.3 Place There are two hubs located in Sri Lanka, major one is the Bandaranaike International Airport at Katunayaka and the other is, Mattala Rajapaksa International Airport at Hambantota.
  10. 10. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 10 There are branches in 64 destinations in 34 countries and online reservation system with 6 different languages the customer can book their tickets, tour packers at online or by calling (Dial a ticket service.) . 24 hours reservation offices available at airport and e ticket booking. Tour operators in many destinations , Source: http://www.google.lk/imgreswww.srilankan.com 2.2.4 Promotion  Advertising: Newspapers, websites, magazine (Sri Lankan cultural values promoting, and natural beauty of the country and airline service and facilities).  Travel Agent Promotion: 70% of sales are done by domestic ticketing offices.  Exhibition and Trade Shows: Participation in worlds travel exhibitions and fairs  Sponsorship: Sri Lankan Airline sponsors sports and traditional events such as Chinese New Year day in Sri Lanka, IATA events and food promotions in Middles Eastern countries.  Special Offers: Business class tickets for low price, extra 10kg allow for students, insurance for business class passengers and duty free offers.  Sales Promotion: Tour packages of Sri Lanka, and hotel booking
  11. 11. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 11  In the year 2012, Sri Lankan Airline spent Rs 430 million for advertising and promotion. Source:http://www.srilankan.com/en_uk/coporate/latest-news/55, http://www.srilankancargo.com/about-us/latest-news/15 2.2.5 People The Sri Lankan airline highly promote the culture of Sri Lankan hospitality service with all traditional values, principally the warm greeting with smiles to the customer saying“Ayubowan”(may you live long), and the air hostesses wear the traditional sari’s as their uniform. They all work as a term with the aim of satisfying the customers, to provide the best service, to create good image for the airline and build strong relationships with customers. There are two main slogans for this airline. First one is “You’re Our World “and second one is “We Change the Way You Fly”..
  12. 12. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 12 2.2.6 Process There is new business lounge opened for business class guests with all facilities and service call “Serendip Lounge’’ at the airport. There is an online reservation system, 24 hours call center, e ticketing and on phone reservation system with all details of flight service such as arrival, departure and the flight route. Other airport facilities including fine dining restaurant, money exchange service, taxi service, medical facilities and tagging the baggage etc. Within the flight also they provide many services such as in-flight entertainment, food and beverages service on the request of passengers a la cart menu with lots of varieties. 2.2.7Physical Evidence The Sri Lankan airline’s all offices at checking counters wear the badges, all the papers use come with the logo and the logo at air ticket , The cleanliness at the cabin and, the logo image at air craft the uniform designing their ambience baggage tagging.
  13. 13. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 13 2.3 SEGMENTATION, TARGETING & POSITIONING OF SRI LANKAN AIRLINE Figure 1: Customer positioning map. Business Class In Bound in Bound Exclusive Exclusive England, German, France Singapore , Dubai Singapore , Dubai Low High High Low Price Price Price Price India, Maldives India Out Bound out Bound 2.3.1Segmentation Understanding of the key segments of the product and service to satisfy the customer needs it helps to identify the best opportunities at the market place, based on geographic, demographic, psychographic and behavioral factors. Figure 2: Customer segmentation
  14. 14. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 14 2.3.4 Major Segmentation Variables for Consumer Markets Figure 2: Segmentation Geographic Details This is based on cities and countries the airline do their operation. Tours for Delhi , Paris , Singapore etc. For Muslim people macramé tours .( including all facilities such as hotel booking car service ) For holidays, shopping and religious festivals. Demographic Details Income The SLA does lot of flight operations to Singapore, Malaysia and Hong Kong. Education The families get high income and they spend their holidays overseas. The packages for students ( England, Singapore ) Psychographic Details Lifestyle .The SLA do different tour packages for their customers after identifying there requirements. Some customers want to go for religious places. Other customers want to enjoy. Some customers fly only for sport events. Business passengers Leisure travelers Students studyat over sees Employees workat over sees SLA Customers
  15. 15. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 15 Behavioral Details Occasions Loyalty Status Seasonal promotion Fly smiles programs with rewards. 2.3.2 Targeting The major target market is business travelers and leisure travelers and they are also divided into another two factors inbound tours and outbound tours. 2.3.3 Positioning The advantage for business class customers is the airline offer special especial allowance and discount for regular customers it depend on their membership states and they can use the business class lounge at the airport with all facilities and one the other hand there are special services also for those customers in flight flat bed for every seat and all flight entertainment cocktail service special meals etc. Source - http://www.srilankan.com/en_uk/coporate/about
  16. 16. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 16 2.3.5 Positioning Map. Exclusive Low Price High Price Figure 4: Positioning map of Sri Lankan Airline with its competitors 2.3.6 Competitors The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors. All major competitors of SLA are in high air taxi class (5 stars) however, as the national airline, it has reputed brand name very comfortable passenger service and special meals they provide more services than their competitors. Example- Traditional Sri Lankan breakfast.
  17. 17. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 17 Figure 4: Competitor Analysis Source -http://www.google.lk/imgres 2.4 ANSOFF MATRIX Marketing has the main responsibility for achieving the profitable growth for the company marketing need to identify, evaluate and select market opportunities and lay down strategies for capturing them. Appling Ansoff strategies help identified where they are now and how to achieve the goals. Figure 5 : Ansoff Matrix. Airline Emirates Qatar Cathay Pacific Singapore Airline Spice jet Jet airways Logo Air Tax Class 5 star 5 star 5 star 5 star - - Route Network 78 countries 69 countries 42 countries 35 countries 8 countries 19 countries
  18. 18. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 18 2.4.1Market Penetration As a marking strategy, increase sales without changing its original product the Sri Lankan airline introduce membership card for passengers when they fly often the airline offer lot of benefits for under their membership credit. There are three membership cards one is blue, silver and gold. That is (Fly smile program) when passengers fly from Sri Lankan airline members will be befitted every time they fly. The benefits include, credit for extra baggers, free meals and special meals on request which would encourage passengers to be regular users. Sourcehttp://www.flysmiles.com/about-flysmiles/benefits, http://www.google.lk/imgres Source -http://www.google.lk/imgres There are other promoting programs introduced for leisure travels call “destination sales” from these they promote the tourist attraction places for special reasonable price. Source - http://www.srilankan.com/en_uk/special-offers/destination-sale
  19. 19. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 19 Further, promoting program is for student they allow extra 10 kg baggers for free of charge. Source: http://www.srilankan.com/en_uk/special-offers Finally there is special program for children call “young smiles’ for children age 2 to 18 to make happy journey for them . Source: http://www.flysmiles.com/youngsmiles E - Ticketing and dial ticketing programs. 2.4.2Market Development The market development is identifying and developing new market for its current product. Therefore airline expand their services to other tourist destination and enter to new market those are Indian, Chinese and Russian market, some destination the airline fly directly other destination the airline fly with partnership. Appendix 1 new markets.
  20. 20. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 20 2.4.3Product Development The government has decided to buy new aircraft for the airline. Source: http://www.lankanewspapers.com/news/2013/4/82604_space.html The new business lounge call “Serendip Lounge” the capacity of this place is 150 people there is food corner, bar and other all business facilities. Source:http://loungeindex.com/Asia/Sri%20Lanka/CMB/Sri%20Lankan%20Airlines%20Ser endib%20Lounge/index.htm The airline handling large group visits for Sri Lanka for the holidays and they organize meetings, conferences and other events too. (There is department for this.) Source: http://www.ft.lk/2013/04/30/slcb-srilankan-airlines-make-bid-for-mice-tourism-in- gurgaon/, http://www.srilankan.com/en_uk/coporate/latest-news/98 Source - https://www.facebook.com/flysrilankan 2.4.4 Diversification New product for new market is not practice.
  21. 21. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 21 2.6 MARKETING LEADERS STRATEGIES APPLIED BY SRI LANKAN AIRLINES 2.6.1Defense Strategies The Market Leader used defense strategies for develop the market place, the Sri Lankan air Line use Position defense to expand the market place and maintain the market. Therefore they always advertising the bard name they promote it on lot of TV advertisement, newspapers, and at their own magazine and other social web pages`. Source -http://www.google.lk/imgres 2.6.2 Brand Image Strategies The Sri Lankan Air Line is 3 star luxury airlines and this brand image is very powerful because this image is very valuable for Sri Lankan people and there are lots of loyal customers under this image. This logo is a bird call a peacock the main reason for selecting this bird, at the ancient time, there was a king who lived in Sri Lanka called“Ravenna”and he made a flying ship called“dadumonara” shape of this bird. According to that, they selected this peacock image this bird represent our history and culture .This logo is simple, very colorful and strong and it will always remind customer’s reason is it is beautiful. Source: http://www.brandsoftheworld.com/logo/sri-lankan-airlines
  22. 22. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 22 2.7 MARKETING COMMUNICATION AND PUBLIC RELATION STRATEGIES APPLIED BY SRI LANKAN AIRLINES The Sri Lankan airline strongly uses personal communication and mass communication to pass the information for new customers and loyal customers. 2.7.1Pull Strategies This strategy use for promote new routs every month they promote new destination with special price and with allowance and make customer demand for this service and they Advertise their own webpage and social networks and newspapers for customers there is adverting cost for this. . Sri Lankan airline Online Reservation Customer And advertising Promote mix 2.7.2 Push Strategies The airline marketing department promotes their product through domestic travel agent and international travel agent sponsoring other counties events and participate trade shows and other tourism event. Sri Lankan Airline ` Travel agent Customers Domestic and International
  23. 23. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 23 2.7.3PromotionalMix  Advertising: TV advertisement, paper and magazine, online advisement, official web page advertisement face book and other social media. Appendix 2 promoting Source http://www.srilankan.com/en_uk/special-offers/destination-sale  Sales Promotion: Marketing department promotion and advertising marketing campaign  Public relations: CSR work (For children and elder people )  Sponsorship: Sport event Surfing classics midlives and Sri Lanka, Ruby and Golf sport tournament. Source: http://www.srilankan.com/en_uk/coporate/about 2.7.4 Public Relation  Press Agencies:Sri Lankan Airline advertises all PR facilities at their wed page, the Serendip magazine and other magazine newspapers in Sri Lanka and other foreign countries.  Product Publicity: Their main product is business class, and economic class, cargo etc. all details at web.  Company Magazine: The Serendip Magazine promotes new updates in airline Sri Lankan tourist attraction places product and government targets.  Annual Reports: Every year annual report public with all details of Profit lost and other CSR works.  Lobbying: Help children homes and elder people homes. And help for government to develop the tourism.  Sponsorship: Sponsoring sport event and other government events. (Golf 2013 Commonwealth )
  24. 24. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 24 2.8 NETWORKING, E- MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES To deliver the information and promote new updates and make good customer relationship this channel is use. 2.8.2E- Marketing Strategies  E –Business: e –ticketing (book ticket from web) Source:http://www.srilankan.com/en_uk/flying-with-us/e-ticketing  E- Marketing: Information about product and services, (in flight and airport) tour packages, Sri Lanka and other countries online feedback facility, face book and other social network promoting Source:http://serendib.btoptions.lk/index.php/http://www.srilankan.com/en_uk/coporate/feed Appendix - 3 E- marketing. 2.9 SRI LANKAN AIRLINE CSR WORKS. Help children in rural area build class rooms with all facilities, such as computer room home science room playground and for selected 12 children provide other necessary items for education (bags, books, shoes etc.) Source: http://www.island.lk/2006/03/19/business10.html,http://www.ft.lk/2010/11/12/srilankan- airlines%E2%80%99-cabin-crew-builds-children%E2%80%99s-home-in-trincomalee/ 2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE. All detail about product promotions, distribution and new updates. Product – cabin, meals, entertainment, child care etc. Promotion – UL Promotion and Partners Promotion inbound and out bound tours. Distribution – Their all offices around the world. New updates – Young smile program etc.
  25. 25. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 25 2.11 VIRAL MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES Using social networks their build up strong relations ship guest, treat all clients in friendly manner promote in word of mouth, from fly smile client encourage use UL promotion and partner promotion. 2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES Source - https://www.facebook.com/flysrilankan Sri Lankan Airlines do sometimes implement guerrilla marketing strategies to credit and debit cards of some banks as well as they do advertise inside the fleet. Example: In board TV advertisements. 2.13 CUSTOMER LOYALTY PROGRAMS There is customer relationship program “Fly smiles” from this when a person fly with them that customer enroll it and they can register and make a profile and be a member. There are 3 membership stated blue, silver, gold every time they use airline or partners goods and service the feel miles updated therefore this members has lot of rewards allowance and other benefits. Source: http://serendib.btoptions.lk/diary.php?issue=46&type=4,http://www.google.lk/imgres Appendix 4Fly smiles program
  26. 26. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 26 2.14 RECOMMENDATIONS To achieve the goal at the businessandmake profitIrecommendUL use SMAT objective. 2.14.1 Marketing Mix Recommendations Product Sri Lankan airline currently maintaining two categories in the aircraft which are Business class and economy class. As Sri Lanka is emerging as Asia business hub it is important to have First class category for VIP Passengers. On the other hand introducing upper economy class and lower economy class allow the airline to offer more versatile price range for the customers. Crate a lounge for economic class which includes dining facilities and computer facilities. Include a computer lab for business class passengers with internet, email, fax, photo copy, and printing facilities. S M A R T Increasethe quality and makeprofit Trainingandmotivationthe staff Limitall unnecessaryexpenses. Year 2017 become 5star air line. Make profitforALA
  27. 27. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 27 Price Comparing to competitors, the Sri Lanka airline prices are fairly high therefore introducing special prices in April, August and December is an opportunity for them increase the number of passengers and the profits as low prices will encourage more people to fly. Today’s trend is that many chose to spend their holidays overseas. To maximize the benefit from this trend the airline can introduce holiday packages including air ticket, hotel, and Taxi service for their requirements at a competitive rate that will attract more people. Targeting young crowd and create tours for them at a reasonable price is another way to expand. Example when there is beach parties in Goa in India Sri Lanka airline can promote those for the younger crowd leisure travelers and this short flight destinations are one way of maximizing profits.. Place Connecting the smaller aircrafts in to the main terminal rather than using a different facility will increase the efficiency of the main terminal and reduce the costs. At ticketing counters and information desk improve higher level of customer service to passengers as well as advertising flight information on the TV at ticketing counters Example – how many tickets available at the moment, Weight of the luggage’s flying hours, weather and time information of the destinations. Promote online and dial up reservation. Promotion Sri Lanka airline is heavily promoted every year but still there is a shortfall in the profits. The reason is more likely that the massage is not powerful enough to attract passengers. When promoting new destinations effective channels such as news papers, magazines, TV local& over sees and radio must be used. On the other hand they the massage is very important therefore it should include strong argument into why a person not only choose the airline but also the destination.
  28. 28. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 28 Example whether it is a holiday destination or business destination or both, the advertising should focus on presenting the activities that will be present at the destination, a glimpse to the experience that would last for a lifetime and also the prices. The Sri Lanka airline has one of the biggest markets in Middle East so it can promote extra luggage allowance for the Middle East which would automatically it increase the market size. People Do the motivation and training programs for the staff for high level of customer service and satisfaction of all passengers fly in UL. Attractive uniform for the female staff Appendix 5 new uniforms. 2.14.2 Segmentation, Targeting and Positioning Recommendations Segmentation Aim for first class passengers, sport tourisms. Targeting The 80% of passengers fly in this airline buy economic class tickets ‘expectations are mainly comfortable seating, delicious food, beverages, watch good movies and enjoy their journey. Positioning Business class passengers ‘expectation is, more space, comfortable seating, cocktail service, internet services, and more magazines to read. Principally Business class passengers are flying to Europe, Singapore and Middle East. Higher customer service will be an opportunity for airline develop the routes and sell more seats in business class. 2.14.3 Ansoff Matrix Recommendations Market Penetration For business class passengers in bound or out bound introducing all inclusive packages are important. Next is at Serandip magazine promotes what are the opportunities available in Sri Lanka for business and the facilities such as use of internet and telephone service in order to match with the competitor Emirates airline.
  29. 29. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 29 For Leisure traveler’s family packages, all inclusive packagers, in bound or out bound, Airline can link their Air taxi service and make special packagers for honeymooners, and when there are Kandy Festival Season introducing special packages for passengers directly to Kandy. Market Development Introduce more direct flights to new destinations for competitive price and good services. Product Development Develop airline facilities and Features. Promote the training schools 3: CONCLUSION Today there is rapid development in tourism industry in Sri Lanka. Sri Lankan airline does the main part of this development, first at the airplane they give best customer service to all passengers and make a good image of Sri Lanka hospitality service and they promote the county’s cultural values etc , though their web page and Serandip magazine. At the airport also they offer good customer service and all these qualities make a reputed brand name. This is the strength of them; it helps to open many doors for future development and to be one of the best airlines in Asia
  30. 30. CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 30 Referencing. Bibliography&Publications  Kotler, P. And Armstrong, G., (2007) Principles of Marketing. 12th ed. Harlow: Prentice Hall Companion. Principle of marketing Kotler, P,Gary Armstrong second impression 2011. http://www.srilankan.com/en_uk/coporate/about retrieved October 20 http://www.srilankan.com/en_uk/coporate/vision-and-mission retrieved January 20 2013 http://www.srilankan.com/en_uk/flying- with-us/business-class retrieved October 20 http://www.srilankancargo.com retrieved October 20 2013 http://www.flysmiles.com/about-flysmiles/benefits, retrieved October 20 http://www.srilankan.com/en_uk/special-offers/destination-sale retrieved December 2011 http://www.lankanewspapers.com/news/2013/4/82604_space.html retrieved October 20 http://www.ft.lk/2013/04/30/sl http://www.brandsoftheworld.com/logo/sri-lankan-airlines retrieved January 2013 https://www.facebook.com/flysrilankan?hc_location=stream http://serendib.btoptions.lk/diary.php?issue=46&type=4 retrieved October 20 http://www.island.lk/2006/03/19/business10.html ,http://www.ft.lk/2010/11/12/srilankan-airlines%E2%80%99-cabin-crew-builds- http://www.sundaytimes.lk/090125/Magazine/sundaytimestvtimes_08.html 25, 2009

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