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2. Introduction
British Airways is one of the most popular airlines in UK and one of the biggest airlines which operate
more than 550 destinations globally. British Airways was established on 25th August 1919 and has
completed 91yrs of operation in the industry.
This largest scheduled international airline of UK not just operates in international and domestic
schedule but also, provides the charter services and freight.
It carries more than 33million passengers, and earning billions in revenue. Located in the principal
business place of London, the company has significant presence at Heathrow, Gatwick and London
City.

3. Situation Analysis of Airlines Industry:
 Air travel remains a large and growing industry. It facilitates economic growth,
world trade and tourism and is therefore central to the globalization taking place
in many other industries.
 In the past decade, air travel has grown by 7% per year. Travel for both business
and leisure purposes grew strongly worldwide. Scheduled airlines have carried 1.5
billion passengers last year. Airlines’ profitability is closely tied to economic
growth.

4. External Analysis of British Airways
For the success of the airline industry, it is very necessary of all the organization to look at
their external environment.
Pestle Analysis:
Political Factors:
a) Heavy regulation of government affects the whole airline industry like increase the
security of passengers due to terrorist threats.
b) b) Also sufficient security measures should be in place to ensure that passenger
confidence and competitive advantage is maintained at all the level.
c) the political instability of the government is also a threat for the entire airline industry.

5. Economic factors:
a) The global economic crisis throughout the world and the affected the most due
to currency weakening against other currencies.
b) also slowing down of economy across the world which led to lesser passenger
travel and also the price war across the industry which led to immense
competition.
c) e) The fluctuations in the oil prices across the globe which affects the price base
of both the airlines and also the exchange rates.

6. Sociological factors:
a) The aging population in UK which is a major concerned for the country as the
older people prefer to travel by other means of transport as their spending power is
less.
b) The other factor is the growing unemployment in UK which reduces the
purchasing power of the people.
Technological factor:
a) Due to increase technology like online service by the airline the major impact is
the customer has more choice in comparing the price as well as increasing customer
awareness and bargaining power.

7. b) The companies have to get updated with advance technology.
c) The company needs to get upgraded on their systems and ensure they are
properly used and maintained which is also a huge cost for them.
Environment factor:
a) The limited lands available for the growing or expansion of the airports due to
losing green zone belt and government regulation on the environment.

8. Swot -Analysis:
Internal Analysis:
a) British Airways has a great image as a low cost airline and is different from other
competitors as compared to price and as well as brand image which it carries.
b) The company is financial very strong and is successful in the industry.
c) For British Airways the greatest strength lies in its brand and its new fleet of
aircrafts which provides immense comfort to the travelling passenger.

9. Weakness
The common problem with the company is it has no customer retention policy and
lack of flexibility
The model of low-cost airlines is far most similar to some on the new or existing
airlines and the price war is reaching a limit. For British Airways it’s very important to
maintain their brand image in the market, the relation with their employees are in a
very bad shape due to continuous strike and also due lack of reliability and trust of
the employee’s.

10. Opportunities in the market:
 There is predication by many analyst that there is great potential in the market for
growth and sees a great opportunity ahead which lies in the industry.
Also the other benefit is the reduction of the cost of the aircrafts, which has ultimately
reduced the operating cost of all the airlines.
Threats to the Company:
 The first threat is the immense competition from other cheap airlines which are
offering a similar service and at cheaper rate. Due to competition the company has to
spend more on the marketing and branding, which is too expensive and also which
could affect the company’s profitability in future.

11.  Corporate Strategy:
Vision of British Airways:
The companies’ vision is to become the world most responsible airline and to be the
world’s leading global airlines,
Goals:
The goal of BA is to become one of the biggest players across the industry as
budgeted airlines and provide the best service to customer.

12. Company Strategy towards their Goals:
 British Airways:
The first thing that British airways planned is by growing their operations and making
corporate responsibility a prominent part of their business.
 By investing in efficient and flexible new aircraft even in economic downturn time.
 By introducing new product such as new business class seat on long-haul flights
and restyled first cabin.
 Delivering first class or one of the best customer services at every touch point.

13. Market segmentation of British Airways:
 Due to increased competition to BA in terms of price and it also varies from route by
route due to open sky policy. It focuses on two main aspect of current market 1). The
short haul market and 2) long-haul market.
 Short haul Market: In this kind f short haul market the company focuses on the people
who prefer to take a shorter routes within the nation called as domestic flights, which
many of the UK companies are operating.
 Long-haul Market: As, we now that the BA is one of the most reputed and well known
name in airline industry and has a very big market share in operating in long distance
flight, its prime focus of business segmentation is exploring new destination and new
routes so that it can target more and more people across the globe and position itself
in such a way that it can sustain in market in any condition and be at the top.

15. Communication Strategies
For this report, it specifically refers to the business tools and techniques that will be
used in achieving company’s short time and long term objectives. Thus, a marketing
communication strategy decides on the overall direction of the plan , therefore it is
essential to formulate an appropriate strategy for an appropriate situation.

16. Pull Strategies
Pull Strategies
Pull strategy is a type of strategy that directed at targeted end user customers,
through stages such as generating increase levels of awareness, informing and
educating to change audience’s attitude, encourage involvement etc.
Possible approaches could be used by BA:
 Direct marketing (via mails or emails)
 Product and services demonstration on the Internet

17. Push Strategy
By performing some added value activities, Push strategy is a type of strategy that to
push customers aimed at to bring out repeat purchase actions.
Possible approaches could be used by BA:
 Advertisement on media
 Sales promotion

18. Profile Strategies
Profile strategy is a strategy that aims to distinct company from all its competitors
through activities that to bring up public (all groups in the society) awareness,
perception and attitudes towards the company itself. This can be done via continual
dialogue with public.
Possible approaches could be used by BA
Short term: press releases or announcements.
Long term: sponsorships.

19. An overall communication strategy
There are many factors that will impact the formulation and implementation of a
strategic communication programme. At the heart of these is the mindset of its
target audiences.
Consumer Buying Behavior
Many models have been developed to formulate the consumer buying behavior.

20. Extensive problem solving model
 This model displays how a consumer moves through the purchasing cycle.
 It argues that a person normally starts its purchasing cycle through a ‘problem
recognition,’ where there is a problem need to be solved; then moves on to the
‘information search’ stage to search for information that can solve the problem,
this may involves ads, visit to the website and discussion among friends.
 This type of decision making process is normally associated with high
involvement purchase such as to choose which airline to fly with based on the
information customer gathered.

21. ATR model
ATR model (Awareness Trial Reinforcement) has been developed by Professor
Ehrenberg in 1974 (quoted in Smith and Taylor 2002) in which suggests that a
consumer moves through the purchasing cycle through a series of stage, starts from
aware of a Brand.

22. Planning and development of BA’s new
theme
This report could now plan and develop BA’s new marketing theme and key communication message:
Theme:
The early part of this report has found that BA’s brand image has been damaged
due to the fiasco at the new Terminal 5, it is now often relate BA and Terminal 5 to
the flight delays and lost bags.
=>> Therefore it is important to change such image by emphasizing on the progress
and improvements BA has made since Terminal S’s opening disaster
As the result, based on ART model, one example of an overall communication theme is:
‘Try it out, BA is learning and improving.’

23. Working together with BAA
By working together with BAA to solve the current and any possible future problems at
the Terminal 5 is the first step to restore the public confidence.
Purpose
 To ensure Terminal 5 reaches its designed potential
Key audience
 BA and BAA staffs and board at Terminal 5
Strategy
 A push strategy will be applied
Proposed Annual Budget
 £2 million (out of £10 annual budget)

24. Conduct a comprehensive media relations
that is highly visible
 Media is at the heart of the communication plan; a good media relation can result
a positive general coverage, thus could help to improve the public image
significantly.
Purposes
 To develop media advocacy
Key audience
 Internal: BA and BAA management board; key stakeholders; high street retailer at
the Terminal 5
 External: influencers; general public.

25. Strategy
 A mixed of pull, push and profile strategies will be applied
Proposed Annual Budget
 0.7 million

26. Key community relations programs
To have a good relationship with key concerning communities such as local residents and
environmental and quality of life advocacy groups can also help to improve BA’s public
image
Purpose
 To generate a good social relations with key concerning communities
Key Audience
 Key community workers and local residents
Strategy
 A mixture of poll and profile strategy would be applicable

27. What are they concern?
 Environmental aspect of the Terminal 5 and quality of life
Message
 To show them that Terminal 5 is environmental friendly building
 To educate local residents the necessarity of having Terminal 5
 To assure their quality of life would not suffer as the result
Proposed Annual Budget
 £0.3 million (out of £10 million total budget)

28. Paid media campaign
Paid media campaign complements the earned media (media relations) campaign
and keeping the campaign highly visible.
Purpose
 To restore public confidence on Terminal 5 and BA
Key Audience
 General public

29. Messages
 Showing the progress and improvements made
 Emphasizing on the state of art of the Terminal 5 building and its facilities and
technologies.
Strategy
 A mixture of push and profile strategy
Media Channels and Budget
Proposed Annual Budget
 £6.9 million (out of £10 million total budget)

30. Measurement and Evaluation
Proposed Annual Budget
 £0.1 million (out of £10 million total budget)

31. Process Measures
 Communication programs implemented on time and on budget.
 Media content analysis (accuracy, impact, reach and balance).
 Level of stakeholder engagement, business partnerships and response from the
influencers.
 Measure media impressions and outreach targets.
 Measure the passenger traffic at Terminal 5.

32. Outcome measures
 Flight punctuality (departure from and arrive to Terminal 5)
 Baggage lost and delay rates at Terminal 5
 Level of passenger numbers to use Terminal 5 (whether Terminal 5 can fulfilled its
designed capacity)
 Passenger feedbacks on Terminal 5