British Airways Marketing Report

The marketing mix is the general phrase used to describe the different kinds of choices organisations have to make in the whole process of bringing a product or service to the market...

British Airline PLC (BA) is the largest international airline that operates out of the Heathrow airport in London. The company recently merged Iberia which was initially proposed in 2009 and was approved by the European Commission in 2010. A new organization was created known as International Airlines Group (IAG) which is the world's third largest airline in regards to total revenue as well as the second largest airline group in Europe. British Airways was the creator of the Oneworld airline alliance in which it has formed a strategic partnership with other industry players such as American Airlines in the U.S. and Qantas Airlines in Australia. Given the size and breadth of the company, a stakeholder analysis must cover a lot of ground. This analysis will look at the different groups of stakeholders that are concerned with the performance of this organization.

In this report, I am going to be looking at British airways plc., how it began it operation its activities, the services it provides, its annual turnover, how it has grown over the few years, the comparison between its competitors and how management accounting can help it grow even better. This report will focus at a background of a chosen organisation, company analyses, cost structure strength and weakness and review it nature and how Management Accountant can supply information to assist the Management of British airways .

Marketing mix is a tactical marketing tool, which consist of four elements: Product, Price, Place and Promotion used to help implement right marketing

In ‘Competitive Strategy’ Porter introduced the concept of generic strategies – differentiation, cost leadership and focus (Harvard Business Review, 2011). Using these possible alternative strategic positions to analyse AA and AWE, they clearly fall under the focus strategy; neither was a cost leader in their field, nor did they differentiate their product significantly from other Legacy competitors. They both targeted their business model at the whole market of airline travelers, catering to all classes of the market and delivering a similar product.

This research report provides an analysis of two popular airlines in Australia; Jetstar and Virgin Blue, both whom are competing in the airline business. Jetstar and Virgin Blue can both compete and be highly profitable within the business, leisure and family market but however, it will ultimately be the service companies, and their associated marketing strategies and techniques which, will establish the difference between the market ‘leader’ and the market ‘loser’. This analysis will detail potential solutions to a number of major strategic issues confronting the companies to maintain its position and protect its profitability in its core domestic market.

In today’s business world, Aviation industry is frequently developing rapidly in order to compete among each other and survive in the larger markets. The passenger air travel industry is facing aggregate competition between low cost/no frills carriers -LCC and the more traditional full service carriers-FSC (Hunter 2006). Due to rapid development, consumer trend improved in the market because flying on mainstream carriers was no longer cost-effectively practical, which lead to an appear of low cost carrier (Whitelegg, 2005). Subsequently, operation strategy is fundamental to the success of the businesses. Slack, Brandon-Jones and Johnston (2013) defined operation strategy as “ The pattern of strategic decisions and actions, which set the role, objectives and activities of the operation (Slack, Brandon-Jones and Johnston: 2013: P70). In this essay, it will be discuss, how two successful businesses: British Airways and Ryanair compete and survive in the airline industry according to strategic operations performance. British Airways (BA) is a worldwide airline based in United Kingdom. It is a famous flag carrier airline. British Airways was established on 31st March 1974 and is now among the largest airlines compared to Ryanair, which is, an international airline based in Ireland. It is known as the low cost airlines and was set up in 1985 by the Ryanair family.

British Airways is the largest international airline company in the UK focused on inflight service and providing a great level of life style with the mission to increase the quality of life through meaningful innovation. It is a widely acknowledged company in the division of a great quality of airline service, has world famous reputation of punctuality, and is one of the most extensive international scheduled airline networks in airline industry. The main product of British Airways is airline transport service. To provide a better quality of product, British Airways endeavours to provide a wide range of services including fast and safe in-flight service, more choices of entertainment, and even a great service of catering system. It focuses on providing vitality to customers

employees or other consumers. On this report we will have a look at importance of internal and external information and its effects on Londonair sales.

The viability and profitability of an association had dependably been of extraordinary concern to all business associations and administrators. Numerous variables in hierarchical structure and framework had been distinguished to assess the proficiency and adequacy of administration frameworks in associations.

We recommend a new mission statement after a consultation process involving our group members. The mission statement can replace an

An optimum marketing mix offers the right product at the right price in the right place at the right time, supported by an appropriate promotion, in order to ensure sales. (Adock)

The current strategies of British Airways are in line with the advancement that the mobile and computing technology is experiencing at current time. At the same time, the company is also focused on expanding its business operations to better serve increasing amounts of passengers due to the slight recuperation of the global economic conditions. Among the strategies that the airline currently undertake include

Ryanair incorporated at no-frills, low-cost, quick to reach consumers destinations in a much modernized aviation industry. For instance, it is more cheaply, and more reliable, than any other airline including British Airways. They do not compromise on safety, top-drawer punctuality, near perfect baggage handling and efficient ‘green’ policy. The target markets of this particular airline are those who compromises on comfort and fare conscious customers. For example: Students, low-income earners, busy businessmen, and family (Ryanair.com). On the other hand, British Airways strategy is to become the world’s leading global premium airline by making cost that is base more efficiently and focus on outstanding customer service, which is a critical part of their strategy. The 5 strategy goals are to be the airline of choice for long haul premium customers, deliver and outstanding service for customers at every touch point, grow their presence in key global cities, build on the leading position in London and meet customers’ needs and improve margins through new revenue streams (British Airways PLC .com). The target market of British Airways is leisure travellers, consumers who want comfort and cost is not an issue (marketingmagazine.co.uk). Both aviation companies are customers based but they do differ from each other in their operation strategy.

The marketing mix is a business tool that consists of four p’s, which are price, product, promotion and place. The marketing mix is useful in many different ways; this essay will analysing how the marketing mix is useful as a tool of analysis and how it will benefit the product. E. Jerome McCarthy, who was known as an American musketeer created this term ‘marketing mix’ in 1964 (van Waterschoot and van den Bulte, 1992) However in 1981 the four p’s had been extended to the seven p’s by Booms and Bitner (Vliet, 2013) The additional p’s, which have been added, are people, processes and physical evidence. The seven p’s have a great impact on the marketing side of a business because it helps businesses; plan every factor in the marketing prospect of the business.