Hong Kong Airlines Marketing Plan for India

3749 Words Sep 25th, 2013 15 Pages
The Hong Kong Polytechnic University
MSc Marketing Management

MM579 International Marketing
Group Project

Hong Kong Airlines –
Expansion to India as a Low-cost Carrier

Group Members: CHAN Ho Yan Anna (12016408g) CHAN Ling Yin Minty (12016376g) CHAN Tsz Ho Will (12017495g) LAM Yiu Hang Eric (12017557g)
SUN Tsz Han Candy (12024075g)

Table of Content

1. Introduction 3 2. Current Marketing Mix 4 3. Current Marketing Strategy 6 4. SWOT Analysis 9 5. Expansion to India 12 Market Analysis 12 International Market Plan 14 Potential Challenges 17 6. Conclusion 18 7. References 19

1. Introduction

The purpose of this project is to develop an international marketing plan for Hong
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| Demographic Segment | Gender * Male > 70% * Female < 30%Age * Below 30: 28% * 31 – 50: 60%Annual Income Level (in RMB) * Below 60k: 12% * >60k-100K: 23.3% * >100k – 150k: 31.5% * >150k – 200k : 9.4% * >200k – 400k: 8.9% * >400k: 14.9% | Travel Purpose | * Business travel: 71% * Vacation/others: 29% |
Figure 3.1 Segmentation of Hong Kong Airlines’ Passenger

Competitors of Hong Kong Airlines

High price
Low price
Low service quality
High service quality

Figure 3.2 Perceptual Map of Competitors

The vertical and horizontal axes of Figure 3.2 represent price and service level respectively. Hong Kong Airlines is located at the bottom right corner because it provides reasonable service level with competitive price.

Dragonair and Tiger Airways both operate on similar routings as Hong Kong Airlines. With Dragonair positioning as a premium brand while Tiger Airways being a low-cost carrier, they are selected for a more detailed competitor analysis.

Dragonair is an international airline based in Hong Kong, which is a wholly owned subsidiary of the flagship carrier of Hong Kong – Cathay Pacific. It aims to offer customers enjoyable and comfortable flying experience via its full scope of services and quality cabin products.

Its customers’ demographic profile is very close to that of Hong Kong Airlines: 85% of the
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