Skip to main content
UploadLanguage (EN)Support
BusinessMobileSocial MediaMarketingTechnologyArt & PhotosCareerDesignEducationPresentations & Public SpeakingGovernment & NonprofitHealthcareInternetLawLeadership & ManagementAutomotiveEngineeringSoftwareRecruiting & HRRetailSalesServicesScienceSmall Business & EntrepreneurshipFoodEnvironmentEconomy & FinanceData & AnalyticsInvestor RelationsSportsSpiritualNews & PoliticsTravelSelf ImprovementReal EstateEntertainment & HumorHealth & MedicineDevices & HardwareLifestyle
Roberto Gudino, M.F.A., M.S., profile picture
Uploaded byRoberto Gudino, M.F.A., M.S.
PDF, PPTX4,085 views

Emirates Airlines Expansion into Miami Market Evaluation (SPEC)

Emirates Airlines, founded in 1985 and fully owned by the UAE government, operates over 1,200 flights weekly to more than 120 destinations across 70 countries. The airline benefits from government subsidies, low fuel prices, and strategic positioning in Dubai, allowing it to maintain competitive operations and target affluent travelers. To expand its presence, particularly in North and South America, Emirates aims to exploit growing markets while adapting its marketing and services to attract a diverse clientele.

Marketing◦
Related topics:
Financial Growth•Exploring North America•
Download as PDF, PPTX
ALEX RANGEL & ROBERTO GUDIÑO View more work at: www.robertogudino.com
Emirates Airlines was founded in 1985 and is fully owned by the United Arab Emirates (UAE) government of Dubai through the Emirates Group. The birth of Emirates Airlines came about from a dispute between Dubai’s rulers and the owners of Gulf Air (Gulf), a regional airline, as Gulf was reducing its flights to Dubai in the early 1980s. Emirates Airlines is an independent and self-sustained company within the Emirates OVERVIEW Company Synopsis
Business Model Emirates flies to over 120 destinations in over 70 countries. The airline’s global reach has helped turn Dubai into a commercial and aviation hub. From its base in Dubai, Emirates operates over 1,200 flights per week across six different continents and has over 170 aircraft in its fleet with plans to add additional large capacity Airbus and Boeing aircraft. Destinations 120 Countries 70 Flights 1,200 Continents 6 Aircraft 170 OVERVIEW
Destination MapOVERVIEW
Business Model An integral part of Emirates Airlines business model is the company’s strategic use of its operational base in Dubai; a large portion of their current flights center around Dubai International Airport (DIA) which allows the company to experience certain cost benefits. Since the government of Dubai owns the airline, Emirates profits from heavy government subsidies, government regulated labor costs and fuel prices below typical market value which in total help the airline maintain a positive earning year to year. OVERVIEW Subsidies Fuel PricesLabor Costs
Branding - LogosOVERVIEW 1999, English serif typeface, Dubai roots 1985, Arabic calligraphy
Branding - SlogansOVERVIEW “Dubai ... The Perfect Holiday Blend.”99 “Hello Tomorrow.”12 “Fly Emirates over 100 Destinations.”02
Branding - Sponsorships To expand their international brand appeal, Emirates began sponsoring multiple sport franchises and cultural events which included: soccer, rugby, sailing, horse racing, cricket, symphony orchestras as well as film and jazz festivals. Two of their most notable and highly visible sponsorships came when Emirates Airlines helped finance both the 2010 and 2014 FIFA World Cup Finals. OVERVIEW
S Size, spread operations across markets Diverse portfolio with 132 destinations Substantial brand awareness Strong backing from UAE and Dubai Gov’t W TO OVERVIEW Substantial amount of indebtedness Lease liabilities approximately $9.7 million Difficulty entering developed regions Not a member of any aviation alliance Developed substantial global partnerships 60 country agreement with the UAE Opportunity to expand its operations Americas lucrative new area for growth Competition in low cost carriers Carriers such as China Airlines, Etihad Airlines and Qatar Airways Volatility in aircraft fuel prices
Government Ownership Because of government ownership interest in Emirates, the government can artificially manipulate fuel and labor prices as well as wave airport fees in order to help streamline production costs. By repressing operating costs and having a commercial fleet that can service most of Europe, Asia, Africa and the Middle East without refueling has given rise to Emirates Airlines success. OVERVIEW
MarketsOVERVIEW MIDDLE-EAST INDIA EUROPE
CompetitionOVERVIEW
Growth Factors Emirates’ success has been spurred by three independent factors: First is their favorable geographical location which places over four billion people within an eight-hour flight from their central hub in Dubai. Access to cheap fuel through subsidies. Emirates is owned by Emirates Group which is state property of the UAE allowing the company to receive subsidies which help keep operating costs low. In order to continue its growth, Emirates needs to rely less these factors and find new markets. OVERVIEW
New Markets Emirates Airlines has a notable presence in Africa but has been reluctant to grow its presence there due to practical concerns regarding financial return on investments when dealing with a politically unstable African market. Europe has been a practical market to expand into because of its wealth and geographic access, it comes with heavy regulation and competition from legacy airlines that have a well established presence. To continue their financial growth Emirates needs to penetrate into new markets that have a fiscally viable consumer base. OVERVIEW
Target Summary Emirates currently targets both upper-middle class and upper class business and leisure travelers with incomes over $75,000. Emirates’ business and leisure travelers expect both world-class service and accommodations across various touch points including lounges, airplane seating, and in-flight services. Our proposed target market for expanding into a new region falls within this socio-economic range. Because Emirates Airlines has a small presence in Latin America relative to other destination regions in its portfolio we are OVERVIEW
Current TargetOVERVIEW VALS Categories Claritas/PRIZM Categories Innovators Wealthy Older Family Mix Innovators are typically wealthy, mature, commanding individuals with strong self-esteem. They are very engaged consumers, and their purchasing behavior reflect sophisticated tastes for upscale, specific products and services. This is a very affluent group that typically have a wide range of social, economic and lifestyle achievements such as high income, advanced degrees, and complex and sophisticated tastes. A majority of the members of this group reside within large metropolitan areas and are typically married with few children. Their age ranges from 45-64 and they have an average annual household income of $88,837.
Proposed TargetOVERVIEW VALS Categories Claritas/PRIZM Categories Achievers Upper-Middle Younger with Children Achievers have goal-driven behaviors and a profound sense of responsibility toward their family and career. Their social lives are structured around family, religion, and success at work. Achievers like to live ordinary lives and are not as quick to adopt new trends as Innovators. These individuals serve as the midpoint on the socioeconomic scale. This group is very representative of the stereotypical American household from past generations. They are frequently upper-middle-class, young married couples with children.
Analysis
Solution Emirates Airlines has only twelve destinations in North and South America with only three of those terminals being in South America. This represents an opportunity for Emirates to continue expansion into North America with long-term potential for expansion into key South American markets. North America is the next logical step in expansion for Emirates because of its current market presence in the region. In addition, North America has substantial purchasing power and a demographic that does extensive international traveling. Current Destinations ANALYSIS
Gateway to South America Miami has a vibrant economy that centers on international finance, commerce and trade. According to the Globalization and World Cities Study Group & Network, Miami became listed in 2010 as an “Alpha” city which indicates its status as a global center that links major economic regions into the world economy. The 2010 US Census reports that 61.7% of the city of Miami is of Hispanic or Latino origin and that 59% of the residents are foreign-born according to the United Nations Development Program. Proposed Destination Miami ANALYSIS
Gateway to South America This local market receives both heavy domestic and international traffic due to it’s perception as a subtropical vacation and holiday destination. It receives an exceptionally high number of Hispanic and Latino travelers coming from South America. While the city of Miami has a rich cultural and historical tie to Latin America it also benefits greatly from its status as a domestic market within the United States. Miami is an ideal location for expansion for Emirates Airlines because of its diverse international traffic flow, the potential to gain access to key South American travelers while also profiting from a wealthy American target consumer. ANALYSIS
Primary Research • Business people from the Miami-Dade metropolitan area • Online survey distributed to local business workers • “Audience” feature to customize research respondents • Sampled 51 respondents living within Miami-Dade • Self-identified as business and financial operation occupants • Fifteen survey questions regarding behavior & preferences 51Respondents 15Questions ANALYSIS
Findings: Destinations 51% Asia Middle-East Europe Latin-America Pacific 35% 53% 2% 4% 6% International Travelers ANALYSIS
Findings: Amenities Gourmet Dining Walk-up Bar WiFi Lie-flat Beds In-Flight Entertainment Seat Comfort 59% 24% 10% 8% 0%0% ANALYSIS
Findings: Brand Awareness Magazines Newspapers Television Blogs & Online Articles Billboards Social Media Word of Mouth Google Search 10% 27% 10% 6% 33% 4% 10% ANALYSIS
Findings: Tone and Lifestyle Competency Sophistication Sincerity 16% 29% 35% ANALYSIS
Findings: Tone and Lifestyle Adventurous Independent Family Oriented 49% 29% 14% ANALYSIS
ANALYSIS
Messaging Because Emirates is a luxury brand with a relatively high purchase value the messaging will also have to reinforce the merits behind purchasing such a high valued choice. This is where accommodation and inflight service will need to be highlighted and represented as the superior choice compared to the competition. Features such as comfort and inflight entertainment will be very important to appeal to family dynamics. It is advisable that Emirates Airlines uses the luxuries and accommodations of their economy class as a focal point since this is the likely choice of the target demographic. The brand personality should come across as being skilled and qualified as well as having a sense of sophistication. ANALYSIS
Channels For distribution, Emirates Airlines should begin with a traditional media strategy. Television is an effective way of targeting large amounts of people as well as easily portraying the values mentioned above. Television also allows marketers to specifically target the Hispanic and Latino components of the city by placing advertisements on Latino channels. This is an expensive endeavor but we believe the cost advantage of acquiring an international consumer base with ties to Latin America is worth the investment. This will provide Emirates with substantial long-term growth in a new market. ANALYSIS
ExecutionsANALYSISANALYSIS
ANALYSISANALYSIS
ANALYSISANALYSIS
ANALYSISANALYSIS
ExecutionsANALYSISANALYSIS
ANALYSISANALYSIS
ANALYSISANALYSIS
ANALYSISANALYSIS
Conclusion Emirates Airlines is in a position to secure their financial growth if they make the right market decisions now. Even though Emirates has a modest presence within North America they need to continue their growth while also laying the foundation for further expansion into South America. South Florida and specifically Miami can be a critical strategic location to secure that growth for the coming years. ANALYSIS
Thank you View more work at: www.robertogudino.com