2. OBJECTIVE
The Presentation analyses the case of Delta Airlines
targeting and re-positioning it’s brand in the Segment
of Business Travellers
3. QUICK VIEW
• The Case (Slide 4)
• The Company (Slide 5)
• SWOT Analysis (Slide 6-9)
• Segment Research (Slide 10)
• Strategy (Slide 11)
Advertising Strategy (Slide 12)
Pricing Strategy (Slide 13) (Slide 4)
Servicing Strategy (Slide 14)
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4. THE CASE
Business Travellers pay 2.5 to 3 times more for tickets
than leisure travellers. Simply say they are Repeat Audience of
the Airlines Industry. Companies fight fiercely for attracting
them. However, The Share of Business Travellers is decreasing.
In one year alone, The percentage of Business Travellers
decreased from 46 to 37%.
The case deals with the Strategy of Delta Air Lines in
acquiring Customers from the Segment of Business Travellers
4
5. Delta Air Lines is a major United States airline headquartered
in Atlanta, Georgia, in the United States.. The
airline's hub at Hartsfield-Jackson Atlanta International
Airport is the world's busiest airport by passenger traffic
(88 million passengers per year) and number of landings and
takeoffs. Delta is the oldest airline still operating in the United
States.
5
6. STRENGTHS
• Excellent Reputation for Service
• Convenient Flight Schedules
• Wide Choice of Destination cities
• Safe and reliable journey
• Sensitivity and Understanding nature towards Passengers
• Adaptability to needs of its Flyers
• Lack of Advanced-Purchase requirements for International
Routes
6
7. WEAKNESSES
• Poor awareness about Delta Airlines
• Business fliers doubt Delta Airlines capability of meeting their
business needs
• Not well-known for its International Routes
7
8. OPPORTUNITIES
• Business Travellers pay 2.5 to 3 times more for tickets than
leisure travellers. Simply say they are Repeat travellers
• A large amount of Segment is still untapped i.e. Less
penetration of Delta in Business Fliers Segment
• Travellers do know about the reputation of Quality service by
Delta Airlines
• Setting up of On-Board Offices with Desks, Fax, Computers,
Printers and Phones on Business-Shuttle Flights
8
9. THREATS
• Companies moving towards cheaper alternatives to Business
travels
• Business Fliers numbers are dropping (Segment is Shrinking).
Decreased from 46 to 37 % of total Fliers
• Highly competitive market
American Airlines upgrading Business Class travel to First Class
level cuisine and individual Head and Leg rests
Northwest Airlines rescheduled all its flights reducing the layover
time for travellers flying with Connecting flights
Provision of Arrival Lounges for Business Class fliers by British
Airlines
Business-one Service (Frequent Flights and Convenience gates) to
Travellers by United Airlines in select cities
9
10. SEGMENT RESEARCH
• Company closely observed needs and wants of Customers
(Business Travellers)
Convenient Flight Schedules
Wide Choice of Destination cities
A safe and reliable aircraft
Service
10
11. STRATEGY
Delta followed a Market Penetration Strategy as part of its
Functional or Marketing Plan of maximizing its Profitability in
the Short as well as Long run by acquiring more number of
Customers and also their loyalty
• Increasing Visibility – Advertisements
• Competitive Edge – Pricing
• Differentiator – Service
11
12. ADVERTISING STRATEGY
• To position itself as an Airline that delivers everything Business
fliers need
• Ads on Television and other National Media
• 30 second TV Ad focuses on Concern of Delta for Unique
needs of International Travellers
• Radio and Print ads communicate Market specific Information
12
13. PRICING STRATEGY
• Lower fares
• Enhanced Frequent Flier program
• Trans-Atlantic flights’ Fares lowered by 10 to 45 percent
• Absence of Advanced Purchase requirements
• Lowering of Mileage requirement
13
14. SERVICING STRATEGY
• Setting up of On-Board Offices with Desks, Fax, Computers,
Printers and Phones on Business-Shuttle Flights* (Feasibility
Study in Progress)
• Quality Service with Sensitivity, Understanding and Personal
Touch
• Cultivating Model behaviour and service with Customers in
Employees
* Being developed by McDonnell Douglas
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