Case Analysis on Airline Industry

2534 WordsMar 29, 200611 Pages
Case Analysis on the Article, ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation, Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service, Budget, Limited-service, Premium-service Segmentation and Targeting: Psychographic, Behavioral, Geographic and Demographic Positioning: Value proposition matrix (more for more, less for less, etc.) Conclusion and Recommendations: „« SIA in marginal value proposition position, needs to boost promotions and sales pitch. „« Low-cost carriers have good customer attraction value, must boost customer retention through loyalty programmes. „« SIA must have clear positioning, i.e., ¡§The Best Airline in…show more content…
Another budding airline sector in Asia is the limited-service airlines, started by Mr. Tony Fernandes with its carrier, Valuair. This category emphasizes that low cost does not necessarily mean no-frills. After all, passengers are customers and that each has at least a single demand, such as meals and drinks, that need to be satisfied. Premium-service airlines, on the other hand, follow the ¡§first-class frills¡¨ model. Prospective passengers pay very high prices and in return experience only the best in air travel ¡V champagnes, leather seats, spacious legroom, no more dreaded middle seat. One example of a premium-service airline is the Midwest Express Airline in the United States. In this case analysis, the four airline categories are discussed with depth based on their segmentation, targeting, and positioning. But more attention is placed on the Asian airline companies, since they are geographically serving a common consumer market. These marketing aspects are chosen due to its simplicity and since marketing strategy is the first step to introducing and developing a prospective product into a particular market. Moreover, market trends relating to the airlines involved may largely be due to how they were first presented to the consumer. Thus, segmentation, targeting and positioning being a marketing strategy of the company must be identified, criticized, and analysed thoroughly to
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