10 step marketing plan cebu pacific

The 10 Step Marketing Plan
for Cebu Pacifc
Nathania T. Villonco
Ateneo Graduate School of Business
2013 Edition

2
10 STEP
Marketing Plan for
Cebu Pacific Air
June 2013
www.nathaniavillonco.blogspot.com

This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
Disclaimer

1. Cebu Pacific PTM consists of Filipino travelers
who are price-sensitive
2. Who wants to have an and affordable yet high-
quality travel experience
3. Can choose Airphil, PAL, ZestAir, SEAair
4. Opportunity is providing low-cost fares to the
millions of Filipinos separated by our islands
5. The market size is 20.57 million domestic
passengers in 2012. Cebu Pacific has 45%
market share.
Steps 1 to 5
Providing ways for
Every Juan to Fly

6. Cebu Pacific provides low-fare flights to 26
international and 34 domestic destinations
7. Promo prices are 15% to 50% less than its
competitors
8. Makes use of online and android apps for quick
promotional information and easy booking of flights
9. Cebu Pacific website and online travel agencies
10. “Low fare, Great value”
Steps 6 to 10
To get every Juan to
more places everyday

1. Cebu Pacific primary target market
(PTM) are the price-sensitive Filipino
travelers
 21-35 year old, male or female, social class B and C, single or
married
 Young professionals who have the earning capacity to spend on
leisure travel at an affordable amount
 Short travel trips of 2 or more times a year with groups of
workmates or friends. They demand low cost fares and
convenient flight schedules to accommodate their limited funds
and time

PTM needs an affordable and
reliable mode of travel
7
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th
ed, Philip Kotler
I want to fit-in with my
friends/co-workers
I am happy when I know myself
through traveling and experiencing
new places and cultures

2. Young professionals have
unique needs, wants & demands
Young professionals need to form networks and build relationships
and achieve Social Needs.
Young professionals prefer, choose Cebu Pacific over other
airlines because it has established itself as providing the
lowest fares through it successful campaigns such as the
“Piso Fare”. The company also appeals to the PTM because of
the “fun-filled” experience that the company promotes.
Young Professionals demand
Affordable fares for group travels, easy booking and
payment process, convenient time schedule, interesting
destinations, can increase bonding experience among
the group

Domestic Passenger
Traffic
Source: Civil Aeronautics Board, Scheduled Passenger Traffic 2006-2012

3a. Cebu Pacific has many
formidable competitors
 Direct: Airphil, PAL, Zestair,
SEAair
 Indirect: Bus Lines, Ferry,
Roro
 Variables: Age, Price, social
class, income, routes, time of
the year, flight schedule,
seasons, holidays

Cebu Pacific is #1 in niche for lowest
fare in domestic flights
Price/ Social
Class Matrix
A B C DE
High price
Low Price
Cebu Pacific
AirPhil
Price vs. Social Class
Matrix
Cebu Pacific
Zestair
PAL
SeaAir
PAL
Zestair
AirPhil
Cebu PacificZestair
AirPhil
Cebu Pacific
as of 2012
SeaAir
PAL
PAL
Zestair
AirPhil
SeaAir
SeaAir

Cebu Pacific niche positioning to
the young professional market
Benefit Positioning vs. Brand Matrix
as of 2012
Functional Benefit
Cebu
Pacific
Airphil
Express PAL ZestAir SeaAir
Website with online booking
Frequent flight schedule options
Baggage Upgrade
Inclusive of Food meals
Credit Card payments
Web-check in
Fun games on flight
Entertainment T.V.
Harder to stand out amidst the competitive clutter.

4. Cebu Pacific positions strongly
as providing the lowest fares
Cebu Pacific is the first airline
 To provide the market with the
lowest fares
 that allows young professionals
 to afford leisure travel
PAL has created their own brand
of Airphil express to copy the
position of low-cost carriers.

5a. Based on the Department of
Tourism, there have been 37.5 million
domestic passengers in 2012
2012: Market size for domestic tourists: 37.5 million
 Cebu Pacific: 45%
 AirPhil: 22%
 PAL: 21%
 Zest Air: 10%
 SeaAir: 1%

5a. Based on the Department of
Tourism data domestic passenger
market is 37.5 million in 2012
References
 http://www.rappler.com/business/18371-low-cost-carriers-drive-
aviation-growth
 http://www.philstar.com/business/2013/02/14/909101/domestic-
airline-passenger-traffic-hit-record-20.57-m-2012
 http://www.abs-cbnnews.com/business/02/14/13/cebu-pacific-
flew-more-local-passengers-airphil-pal

5b. Based on data from CAB (Civil
Aeronautics Board), where Cebu Pacific
share is 45%, total market size is 20.57
million
1. Cebu Pacific domestic passengers data may be
9.2 million
2. Cebu Pacific claims market share of 45%
3. The total domestic passenger market size is P 9.2
million/.46 = 20.57 million

 According to 2009 NSO Survey:
 Average trips a year: 2
 Average Expenditure:
Independent travelers: Php 1,818
Package tour: Php 17,981
5c. Consumer data indicates a size of
37.5 million domestic passengers

5. Concluded that domestic passenger
market is 37.5 million
1. Department of Tourism data= 37.5 million
2. Civil Aeronautics Board data = 20.57 million
3. Domestic Passenger market data = 37.5
million

6a. Cebu Pacific domestic
destinations
Destinations: 32 domestic
19 international
Fleet: 41
Source: http://www.rappler.com/business/18371-low-cost-carriers-drive-aviation-growth

6a. Cebu Pacific competitors
domestic destinations
31 international
Fleet: 40

3 international
Fleet: 21

4 international
Fleet: 14

5 international
Fleet: 5

6b. What makes Cebu
Pacific different?
 Offers the most routes for domestic destinations
 More options of flight schedule
 Pioneer in creative pricing strategies
 Offers fun in the skies with its games on board
known as Fun Flights
 Fun shop of Inflight Duty Free merchandise
 First local airline to introduce e-ticketing, prepaid
excess baggage and seat selection

6b. Cebu Pacific Website

6b. Catchy phrases of Cebu
Pacific Promos

7. Price Conclusion
Cebu Pacific fares are 15% to 50% less
than its competitors
Cebu
Pacific
AirPhil PAL SeaAir
Manila-Cebu 2,316 5,072 3,176 2,654
Manila-Davao 2,787 5,132 4,576 2,550
Manila-Iloilo 2,664 5,352 2,606 3,126
Top 3 Domestic Destinations
Round Trip
June 12-18, 2013

8a. Which of these modes
does your product use?
** Pls. rank most used, 1-highest use
1
2
3
4
5

8a. Billboard in Butuan City

Marketing events and
sponsorships

Cebu Pacific tie-up with Citibank Card
for Advanced alerts and CEB points

Cebu Pacific Filipino Time
Commercial
Link: http://www.youtube.com/watch?v=5atoa8UxRnQ

Experience Cebu Pacific’s “Fun-
filled” Christmas in the Air
Link: http://www.youtube.com/watch?v=p3DZ-_ObIIg

Airphil Express Website

AirPhil express of P1,
P27, P88 Promo deals

ZestAir Promotions

ZestAir celebrity endorsers

SeaAir Website

SeaAir Promo

9. Cebu Pacific is accessible
anytime, anywhere
 Cebu Pacific website is accessible 24/7
which promotes convenient online
booking
 Travel Agencies
 Online Travel service providers
 Cebu Pacific ticketing office

10. Cebu Pacific
differentiation
 Cebu Pacific’s main strategy is to
provide its passengers with the lowest
fares so that everyone can fly
 It differentiates itself through its various
games on board to make the
experience uniquely Cebu Pacific

44
SUMMARY

1. Cebu Pacific PTM consists of Filipino travelers
who are price-sensitive
2. Who wants to have an and affordable yet high-
quality travel experience
3. Can choose Airphil, PAL, ZestAir, SEAair
4. Opportunity is providing low-cost fares to the
millions of Filipinos separated by our islands
5. The market size is 20.57 million domestic
passengers in 2012. Cebu Pacific has 46.1%
market share.
Steps 1 to 5
Providing ways for
Every Juan to Fly

The 10 Step Marketing Plan
for Cebu Pacific
Ateneo Graduate School of Business
2013 Edition

10 step marketing plan cebu pacific

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