Flight 001 Target Market

David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During

The target demographic for Southwest is very broad. The fact the airline has a brand that appeals to price-conscious travelers who do not mind the airline’s no-frills philosophy means it attracts lots of small business owners, young adults, middle-class families, and those who are traveling a short distance. Southwest operates a simplified airline to keep costs down. It only operates one type of aircraft, and its no-frills plan includes no assigned seats or class seating, no meals, and no onboard movies. The company has a strong emphasis on customer service and a differentiation strategy to keep customers happy and loyal. When hiring for customer service positions within the organization, Southwest focuses on attitudes rather than skills and encourages peer hiring. This strategy helps the company identify those who fit the organizational culture and who are most likely to further the company’s philosophy of

JetBlue Airways, based in Forest Hills, New York, was founded in February, 1999, by David Neeleman, the son of Mormon missionaries. He was born in Sao Paolo, Brazil, but raised in a tightly-knit Mormon family (Gajilan, 2003). After serving as a Brazilian missionary during college, Neeleman returned to his family’s base in Salt Lake City and began an enterprising condominium rental business.

The economy class is targeted at the leisure travel segment and the low cost business travel segment.

Boeing’s target market is different in that they are selling to companies rather than individuals. The target market is determined through a combination of geographic and demographic segmentation. The two target markets are commercial airline companies and the US government and its allies. These markets directly coincide with the company’s two business units: Commercial Airplanes and Defense, Space, & Security (Boeing, 2016).

The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at

David Neeleman found JetBlue in 1999 with the mission “to bring humanity back to air travel". This goal is achieved by creating a company that offers comfortable, friendly travel at low fares and by this to differentiate themselves from the mass.

JetBlue has been one of the most successful airlines since it first entered the industry in December of 1999. Founder, David Neeleman, set out to succeed by offering low-cost air travel in hopes of perpetuating his services to as many people as he could across the US. He was very adamant about having a very customer oriented business that catered to the needs of all. In doing so he wanted to emphatically promote his obligation to safety, caring, integrity, passion, while allowing the customers to have fun while traveling. There motto helps portray Neeleman’s belief stating “You Above All”. His primary goals had been to follow Southwest’s objectives of offering low rates to customers, focusing on customer’s needs and comforts while distinguishing itself with their amenities. Neeleman’s other goal was to establish his low-cost leadership strategy by concentrating his airline in a large popular metropolitan area that already is already correlated with high airfare (Peterson, 2004). He then began operating based out of the New York metropolitan area at John F. Kennedy International airport with his secondary locations in Washington D.C., Boston and Los Angeles.

Jet-blue Airways is American low cost airline head quartered near New-York city. It’s foundedin August 1998 by David Neeleman with Joel Peterson as a chairman and David Barger as apresident and CEO. By late 2006,like some other airlines, JetBlue faced some softening demand and high cost due to the increase in fuel prices. Barger realizes that JetBlue needs to take further steps to slow its rate of growth. Barger was not sure about the reductions across E190 and A320. The E190 showedpromising growth opportunities and challenges for JetBlue. At the same time, the A320 wasconsidered as proven plane that had succeededover past 6 years. Most of the airline industries were using hub-and-spoke system and point-to-point services. Due to this service, South West Airlines showed consistent profits. After September 11th, the airline industry experienced trouble due to attack. Looking at the history of Jet-blue, it started with just 10airplanes in 2000 and by 2011 the company planned to have 290 planes in service. To support customers, Jet Blueprovided

JetBlue is known as the airline that promises, and also delivers. JetBlue delivers Air flight of the future, with new jets and the lowest fares available. JetBlue has proved to the world that one can have it all. JetBlue’s Airways started in 2000 with the mission as stated by the founder Neeleman: “to bring humanity back to air travel by offering passengers low fares, friendly service, and high-quality product” (Ford, 2004, p.139). JetBlue has five core values that they operate by on a daily basis, which includes, safety, caring, integrity, passion and fun. JetBlue continues to adapt to the changing environment, and its community by evaluating the risks and

BA’s product in essence relates to the flights offered. However, the product can be drilled down into specific areas ranging from the airport lounges around the world, the ‘extras’ that you can buy on board such as model BA aeroplanes or even package holidays. Each of these has been specifically tailored to meet customer expectations (which are highlighted in the section of the report titled ‘target market’). This part of the marketing mix focuses on how BA’s products are managed and in the Guardian case study article titled ‘BA, Iberia and American Airlines tie-up heralds new era of transatlantic travel’ dated 06/10/2010 it shows how BA have made an executive decision to link their websites with other companies to have the possibility to offer a higher number of routes (products) to their potential customers.

•Neeleman offered passengers a unique flying experience by providing new aircrafts, simple and low fares, leather seats, free Live TV at every seat, pre-assigned seating, reliable performance, and high-quality customer service. JetBlue focused on point-to-point service to large metropolitan areas with high average fares or highly traveled markets that were underserved. JetBlue’s operating strategy had produced the lowest cost per available seat mile of any of the major U.S. airlines in 2001—6.98 cents vs. 10.08 cents.

David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During

JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and

Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the