A database management project conducted by NYU students. Using crosstab analysis and other data analytic tools to categorize current customers of Emirates into different value groups and create customized marketing strategy to address each of the segmentation.

1. Emirates Airlines
Database Management and Modeling
Analida Cuevas
Hiroko Usui
Niki (Ye) Zhou
Danny (Yifan) Zhu

2. Agenda
1. Industry Overview
2. Techniques for Analysis
3. Segmentation
4. Marketing Plan
5. Measurements & KPI
6. Evaluating ROI

3. Global Airline Market
What is happening in the global airline industry?
•
Key Stats snapshot (2012)
o Industry Revenue: $680B in revenue (1)
o Industry Profit: $7.6B ($2.45 profit/passenger)
o
•
Annual growth in next 5 years: 42%
o
(1)
Projected revenue in 2015: $714B
Trends:
o Slackening passenger demand due to higher fares forecasts (3)
o Soaring fuel prices (3)
o Huge trend for Merger and Acquisition (United & Continental, AA & US Airways)
o The world's passenger traffic centers on North America, Europe and Asia (2)
(3)

4. Regional Potential
The Middle East is the fastest growing region for passengers
Largest Group: Middle East Airlines
Airline Group
Revenue $mil
Emirates
14,807
Qatar
5,381
Saudi Arabia Airlines
5,300
Etihad Airways
2,951
El Al Israel Airlines
1,972

5. Regional Potential
How does Emirates fare amongst its main competitors?

6. Global Airline Alliances
What are the major Alliances that exist today?
Alliance
Star Alliance
(United Airlines, U.S. Airways, Air China, All
Nippon Airways (ANA), Thai Airways,
Lufthansa, Swiss International Air Lines, Turkish
Airlines, etc.)
SkyTeam
(Continental Airlines, Delta Air Lines, Northwest
Airlines, Korean Air, Air France, Alitalia, KLM
Royal Dutch Airlines, etc.)
Oneworld
(American Airlines, Cathay Pacific, Japan
Airlines, Qantas, British Airways, Finnair, etc.)
Rest of the Industry
(Emirates, Air India, Aer Lingus, Virgin Atlantic,
JetBlue, Southwest, etc.)
Facts and Figures (as of March 2013)
Member Airlines: 28
Countries: 194
Fleet: 4,570
Annual Passengers: 649 million
Revenue: $97.9 billion
Member Airlines: 19
Countries: 187
Fleet: 4,150
Annual Passengers: 506 million
Member Airlines: 13
Countries: 134
Fleet: 2,382
Annual Passengers: 303 million
Revenue: $89.9 billion
Market Share: 23.2%
Member Airlines: n/a
Countries: 204
Fleet: 13,082
Annual Passengers: 1,223 million
Revenue: $4,651 billion
Market Share: 22.9%
Market Share: 29.3%
Revenue: $97.9 billion
Market Share: 24.6%
Over 60% of
the world’s
passengers

7. Competitors Framework
How does Emirates fare amongst its main competitors?

8. Analysis Techniques Applied
How did we analyze the data?
Total Revenue * Last Flight Date Crosstabulation
1. Variables: Last Flight Date, Revenue, Number of flights.
2. Crosstab Analysis: Last Flight Date, Revenue
• 1 Business Flight = $10,000 Revenue and 1 Leisure Flight = $ 1,500 Revenue
• Higher revenue also means higher profit. (High profit rate for Business Class flights)
• Customers with higher previous spent are more willing to join a reward program.
Data processing:
1. Categorize Last Flight Date into 4 groups: Last 3
month, 3-6 month, 6-9 month, 9-12 month
2. Categorize Total Revenue (Business+Leisure) into
4 groups: less than $10,000, $10,000 to
$40,000,$40,000 to $ 70,000, $70,000 and more.
3. Run a Crosstab Analysis in SPSS:

9. Direct mail or Email
Which is more effective?
ROAS:
Direct Mail = $1.25
Email = $1.50
→ There must be a difference in
RR across groups
Direct Mail RR is 6 times higher than Email RR: Direct Mail
Otherwise: Email

10. Segmentation Scheme

11. Marketing Plan
How would we approach the target audience?
1st Outreach
2nd Outreach
High
Direct Mail
Direct Mail
Medium
Direct Mail
Email
Low
Email
Email
Our proposal is to do 2 outreaches in one year, but the details (i.e. qty) for the second outreach will be
based on the response rate of the first. The first outreach will occur in the 2nd quarter in time for the
summer holiday purchasing.
In addition:
•
•
Social Media:
In-flight Advertisement: offering a unique advantage in a distinctive environment
(Emirates' In-flight Magazine “Open Skies: Twice voted the World’s best by readers of Executive Travel)

12. Call-to-action
What is our main message?
● Sign up to start earning great travel awards for your organization and for
yourself. Go to:
https://www.emirates.com/us/english/business_rewards/business_rewards.asp
x

13. Call-to-action
What action do we ask them to take to enroll?
Direct Mail:
● Go to link provided and enter promo code EMIR5M to receive 5,000 extra miles
when you sign up
Email:
● Go to link provided and enter promo code REWRD5M to receive 5,000 extra miles
when you sign up

14. Evaluating Success
How do de measure and evaluate success?
PRIMARY KPI:
ROI
Conversion Rate: # of individuals that enrolls
Cost per lead
•
•
•
SECONDARY KPI:
Email:
Open Rate
Click-through-rate
Unsubscribe and spam complaints
Direct mail:
Response Rate
•
•
•
•

15. ROI for Year 1
What do we expect to achieve?