10 Step Marketing Plan for Cebu Pacific Air

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10 Step Marketing Plan for Cebu Pacific Air

  1. 1. 1<br />10 STEP Marketing Plan for CEBU PACIFIC AIR<br />Sheilanor C. Turingan<br />June 2011<br />http://sheilanorturingan.blogspot.com<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 />http://sheilanorturingan.blogspot.com<br />
  3. 3. Steps 1 to 5Cebu Pacific targets budget travelers<br />Cebu Pacific’s travel base is the price-conscious young travelers.<br />PTM wants more travel which may mean less comfort.<br />Direct competitors are Airphil, ZestAir, SEAir and PAL.<br />Opportunity of bringing air travel closer to more Filipinos.<br />Market size for domestic passengers is 16M.<br />http://sheilanorturingan.blogspot.com<br />
  4. 4. Discount Carriers is the Name of the Game<br />Cebu Pacific offers year-round Low Fares, has more domestic destinations.<br />Promo fares are the lowest, yet regular fares are more expensive.<br />Cebu Pacific has captured worldwide audience through its website. <br />Booking at your fingertips!<br />Cebu Pacific dominated the market through its Low Cost Strategy.<br />http://sheilanorturingan.blogspot.com<br />
  5. 5. 1. Cebu Pacific’s travel base is the Price-Conscious Young Travelers<br />21-35, Male of Female, Class AB and C1 (Upper Middle Class), Single or Married<br />Young/ starting professionals, Junior executives who want to travel for leisure and are price-conscious<br />They usually travel on long weekends and holidays and who prefers less comfort and more travel.<br />http://sheilanorturingan.blogspot.com<br />
  6. 6. PTM wants more travel which may mean less comfort<br />Ability to Travel is a “status” symbol<br />Satisfies the need to belong<br />Traveling with family, friends and colleagues<br />Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler<br />6<br />http://sheilanorturingan.blogspot.com<br />
  7. 7. 2. PTM wants low fares!!!<br />Traveling with family, friends and colleagues satisfies the need to belong<br /> Traveling has become a status symbol, satisfying the esteem needs<br />Price-conscious travelers choose Cebu Pacific over any other airline because of its promotional seat sale for most of its international and domestic routes.<br />They demand value for their money, yet chooses thrift over luxury.<br />http://sheilanorturingan.blogspot.com<br />
  8. 8. 3a. Direct and Indirect Competitors<br />Direct: AirPhil, Zest Air, PAL, SEA Air<br />Indirect: WG&A Philippines, Negros Navigation, Sulpicio Lines, Inc., MBRS Lines, Viva Shipping Lines, Bus Lines<br />Variables: Price, Purpose, Flight Frequency, Routes, Accessibility<br />http://sheilanorturingan.blogspot.com<br />
  9. 9. 3b. Cebu Pacific dominates the Low Cost Carrier Industry<br />as of 2011<br />http://sheilanorturingan.blogspot.com<br />
  10. 10. as of 2011<br />3c. Cebu Pacific’s Competitive Positioning<br />Low cost,<br />Great Value!<br />http://sheilanorturingan.blogspot.com<br />
  11. 11. 4. Cebu Pacific’s Low Fare, Great Value Strategy<br />Cebu Pacific changed the landscape of the domestic airline industry through its LOW FARE, GREAT VALUE STRATEGY<br />Because of competition, other airlines such as AirPhil, Zest Air and SEA Air were forced to cut fares and offer promos.<br />Traditional Positioning was based on luxury, reliability.<br />http://sheilanorturingan.blogspot.com<br />
  12. 12. 4. Cebu Pacific’s vision: It’s time everyone flies!!<br />Cebu Pacific pioneered in creative pricing strategies, as it manages to offer the lowest fare<br />Cebu Pacific has fulfilled its vision of effectively bringing air travel closer to more Filipinos<br />Cebu Pacific continue to dominate the industry as it increases flight frequency and invest in modern and efficient aircraft. <br />http://sheilanorturingan.blogspot.com<br />
  13. 13. 5a. Market Size for Domestic Passengers is 16M <br /> data source: http://www.centreforaviation.com<br />http://sheilanorturingan.blogspot.com<br />
  14. 14. 5b. Cebu Pacific’s Market share is 48.2%<br /> data source: http://www.centreforaviation.com<br />http://sheilanorturingan.blogspot.com<br />
  15. 15. 5b. Cebu Pacific’s international traffic growth is 39.7% <br />Cebu Pacific international air traffic growth<br />http://sheilanorturingan.blogspot.com<br />
  16. 16. 5c. Consumer data indicatesmarket size of P91.504B<br /> Average travel per consumer = 3<br /> Leisure – 2x a year<br /> Business – 1x a year<br /> Yearly Airfare cost – 3 * P5,719<br /> * based on average price comparison<br />Total Industry 16M * 5,719 = P91.504B<br />http://sheilanorturingan.blogspot.com<br />
  17. 17. 5c. Average all-in domestic fare is P5,719.00<br />Average fare: 5,719.00<br />http://sheilanorturingan.blogspot.com<br />
  18. 18. 5. Competitor’s Domestic Market Share is 47.399B<br />Competitor data= 47.399B<br />Company data = 44.105B<br />Customer Usage data = 91.504B<br />http://sheilanorturingan.blogspot.com<br />
  19. 19. 6a. Cebu Pacific’s routes<br />260 flights daily<br />16 International Destinations<br />33 Domestic Destinations<br />http://sheilanorturingan.blogspot.com<br />
  20. 20. 6a. Cebu Pacific has more domestic routes<br />33<br />18<br />11<br />24<br />http://sheilanorturingan.blogspot.com<br />
  21. 21. 6a. Cebu Pacific’s websitehttp://www.cebupacificair.com<br />http://sheilanorturingan.blogspot.com<br />
  22. 22. 6a. Competitors’ Website<br />http://www.zestair.com.ph/<br />http://sheilanorturingan.blogspot.com<br />
  23. 23. 6a. Competitors’ Website<br />http://www.airphils.com/<br />http://sheilanorturingan.blogspot.com<br />
  24. 24. 6a. Competitors’ Website<br />http://www.flyseair.com/<br />http://sheilanorturingan.blogspot.com<br />
  25. 25. 6b. Cebu Pacific’s Newest Offering : Non-stop LiteFare<br /><ul><li> All-year round fares
  26. 26. Earlier booking gets the lower fares
  27. 27. Options for prepaid baggage at the</li></ul> time of booking (15,20,25,30 kg)<br />http://sheilanorturingan.blogspot.com<br />
  28. 28. 6b. Cebu Pacific’s Promotional Seat Sale<br />http://sheilanorturingan.blogspot.com<br />
  29. 29. 6b. Cebu Pacific’s Tour Packages<br />http://sheilanorturingan.blogspot.com<br />
  30. 30. 6b. Cebu Pacific’s On-Time Performance<br />Global Standard <br />77%<br />Internal Standard<br />85%<br />http://sheilanorturingan.blogspot.com<br />
  31. 31. 7. Price<br /><ul><li>From “0” or “1” to base fare
  32. 32. Price endings of “8” or “9” – 488, 588, 888, 1099, 1499
  33. 33. Options for add-ons – insurance, prepaid baggage, seat selection
  34. 34. Earlier booking (6 months to 1yr) means lower fares</li></ul>http://sheilanorturingan.blogspot.com<br />
  35. 35. 7. Cebu Pacific’s Airfare is one of the most expensive! <br />http://sheilanorturingan.blogspot.com<br />
  36. 36. 7. Cebu Pacific’s PricingStrategy<br /><ul><li>Promo fares relative to destination and travel date
  37. 37. Low fares only during promos/odd days/forward booking (6mos-1yr)
  38. 38. Promotional sale almost every month with limited seats and limited time.
  39. 39. No-frills fares, other services provided as an option – food, blanket
  40. 40. Expensive regular fares to counter promo fares.</li></ul>http://sheilanorturingan.blogspot.com<br />
  41. 41. 8a. Which of these modes does your product use?** Pls. rank most used, 1-highest use<br />1<br />3<br />2<br />4<br />5<br />http://sheilanorturingan.blogspot.com<br />
  42. 42. 8a. Cebu Pacific’s effectivepromotional strategies<br /><ul><li>Online sales through its website
  43. 43. Announcement on leading newspapers
  44. 44. Social networking sites: Facebook, Twitter, Youtube
  45. 45. Enewsletter for Seat sale alerts
  46. 46. Press releases
  47. 47. Word of mouth from passengers</li></ul>http://sheilanorturingan.blogspot.com<br />
  48. 48. 8a. Cebu Pacific’sPromo Announcements<br />http://sheilanorturingan.blogspot.com<br />
  49. 49. 8a. Cebu Pacific has captured worldwide audience through its website<br />http://sheilanorturingan.blogspot.com<br />
  50. 50. 8a. Cebu Pacific’s Facebook Page<br />Cebu Pacific Air<br />Company<br />241,848<br />people like this<br />http://sheilanorturingan.blogspot.com<br />
  51. 51. 8b. Follow Cebu Pacific on Twitter!<br />http://sheilanorturingan.blogspot.com<br />
  52. 52. 8b. Cebu Pacific generates 10M views on YouTube<br />Dancing Female flight attendants<br />http://youtu.be/Lqh8e2KYIrU<br />http://www.youtube.com/watch?v=Lqh8e2KYIrU<br />http://sheilanorturingan.blogspot.com<br />
  53. 53. 8b. Cebu Pacific’s Press Releases: The airline with flying colors<br />WWF Award<br />Changi Award:<br />ISO 9001:2008<br /> Certificate:<br />Marketing Communication Effectiveness Awards 2007<br />http://sheilanorturingan.blogspot.com<br />
  54. 54. 8b. Cebu Pacific’s Online Press Releases<br />CEB breaks 1M passenger record in one month <br />CEB flies 2.8 million passengers in Q1, posts 12% increase <br />CEB pilot best in the country; wins Airline Pilot of the Year award<br />CEB website most popular travel site in the Philippines<br />http://sheilanorturingan.blogspot.com<br />
  55. 55. 8d. Competitor’s PromoAir Philippines<br />http://sheilanorturingan.blogspot.com<br />
  56. 56. 8d. Competitor’s PromoZest Air<br />http://sheilanorturingan.blogspot.com<br />
  57. 57. 8d. Competitor’s PromoPAL<br />http://sheilanorturingan.blogspot.com<br />
  58. 58. 8d. Competitor’s PromoSEAir<br />http://sheilanorturingan.blogspot.com<br />
  59. 59. 8d. Why Cebu Pacific’s Promotions stand out<br /><ul><li>Roll out of promos almost every month
  60. 60. Trademark low fares are being anticipated by budget travelers.
  61. 61. The only airline who can provide the lowest fares and can fly the most passengers to the most destinations most frequently.</li></ul>http://sheilanorturingan.blogspot.com<br />
  62. 62. 9. Booking at your fingertips!<br /><ul><li>Online booking through its website
  63. 63. Call center for Manila and Cebu offices
  64. 64. Nationwide ticketing offices
  65. 65. Partner Sales Agents
  66. 66. CEB Biz for Corporate & Government Sales
  67. 67. 3rd party Sales Outlets</li></ul>http://sheilanorturingan.blogspot.com<br />
  68. 68. 10. Cebu Pacific’s winning strategy: LOW COST PRODUCER<br />Low Cost Producer<br />Supply and Distribution Leverage<br />Differentiation<br />Niche<br />http://sheilanorturingan.blogspot.com<br />
  69. 69. 10. Cebu Pacific’s winning strategy: LOW COST SERVICE<br />Low Cost Producer through efficient operations:<br /> - youngest fleet, average of 2.5 yrs – less maintenance<br /> - E-ticketing – paperless ticketing<br /> - expanding network – increased flight frequency, more routes, more destinations<br /> - less comfort, more travel as more travelers choose thrift over luxury<br />http://sheilanorturingan.blogspot.com<br />
  70. 70. 49<br />SUMMARY<br />http://sheilanorturingan.blogspot.com<br />
  71. 71. Steps 1 to 5Cebu Pacific targets the budget travelers<br />Cebu Pacific’s travel base is the price-conscious young travelers.<br />PTM wants more travel which may mean less comfort.<br />Direct competitors are Airphil, ZestAir, SEAir and PAL.<br />Opportunity of bringing air travel closer to more Filipinos.<br />Market size for domestic passengers is 16M.<br />http://sheilanorturingan.blogspot.com<br />
  72. 72. Discount Carrier is the Name of the Game<br />Cebu Pacific offers year-round Low Fares, has more domestic destinations.<br />Promo fares are the lowest, yet regular fares are more expensive.<br />Cebu Pacific has captured worldwide audience through its website. <br />Booking at your fingertips!<br />Cebu Pacific dominated the market through its Low Cost Strategy.<br />http://sheilanorturingan.blogspot.com<br />
  73. 73. 10 STEP Marketing Plan for CEBU PACIFIC AIRReferences<br />http://www.philippines-travel-guide.com/ferry-list-philippines.html<br />http://www.slideshare.net/lenilynne/go-lenilynne-v53-10-step-marketing-6946834?from=ss_embed<br />http://loqal.ph/business-and-finance/2010/02/09/budget-carriers-boost-rp-airline-industry-growth/<br />http://www.bworldonline.com/Research/populareconomics.php?id=0188<br />http://www.mb.com.ph/articles/297732/cebu-pacific-air-targets-fly-12-million-passengers-2011<br />http://www.mb.com.ph/articles/261113/cebu-pacific-now-rp-s-largest-airline-terms-passenger-flown-q1<br />Domestic Airline Research by Canda, Flores-Gaspar,Guevarra, Turingan Zhou Xue “Vicky<br />www.cebupacificair.com/<br />http://sheilanorturingan.blogspot.com<br />
  74. 74. 53<br />10 STEP Marketing Plan for CEBU PACIFIC AIR<br />Sheilanor C. Turingan<br />June 2011<br />http://sheilanorturingan.blogspot.com<br />

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