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
…show more content…
| 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
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
In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
First, the organization can deliberate on the procurement of other minor aircraft to strengthen its position in target markets to further conquer more market shares, e.g., it may invest or acquire local carriers and further upgrade their whole deal flights. As such, clients can select its subsidiary local auxiliaries or via utilization as reciprocal. The Dragonair is a fabulous example demonstrated by its actions. Accordingly, clients will be availed to possess the capacity to choose to agilely orchestrate their routes with Cathay Pacific Airways at all levels arranging from provincial to worldwide.
The customer segment of Jet Airways includes business and tourist travellers. The business travellers look for on time schedules and loyalty depends upon
The “ Battle Of The Air” has been used to describe current situation in the airline industry. The emergence of “ No Frills “ discount carriers such as Air Asia, Mahlindo, Firefly have threatened the survival of the traditional giants such as MAS, SIA, Thai Airways in the APAC regions and even the Big Boys across the continents such as United, Delta, Continental, Luftansa, Emirates and US Airway ( Myron J.Smith, 2012 ) face competition
Qantas is the oldest airline in the English speaking world. It was founded by the three aviation pioneers Hudson Fysh, Paul McGinness and Fergus McMaster as the Queensland and Northern Territory Aerial Service in 1920 and has grown from one aircraft which offered air taxi services and joyrides to a
AirAsia’s brand name is well-established in Asia Pacific. It expanded its route network aggressively in local and international destinations. At the end of 2002, it has covered all the major destinations in Malaysia and operated in over 25 countries and over 400 international and national destinations. Due to those aggressive expansion, AirAsia is able to penetrate and stimulate the potential market, and successfully gained the customers loyalty among the local and international market. Based on the research, most of the customers are loyal to AirAsia and willing to choose AirAsia again when they
network and this allows the company to dominate the short haul segment of the airline
Cathay Pacific Airways Ltd. (hereafter as C.P.) was established in the 1940’s in Hong Kong and has been well-known as proficiency and security. Meanwhile, it remains notably dedicating on its domestic market Hong Kong, besides, it will present other supplementary 72 brand-new aircraft by 2024 (Cathay Pacific Annual Report, 2015). There are maximum 33, 000 employees simultaneously collaborate cross-broadly, and approximately 25,000 of them are in Hong Kong. It is on the list of the program “The Stock Exchange of Hong Kong Limited”, as Air China and Swire Pacific represent a considerable proportion of its stocks. C.P. and its subsidiary Dragonair joint function 52 routes in Mainland
BA enjoyed great success during the 1980s and early 1990s, and as a result, became the world 's most profitable airline for the most part of the 1990s, representing itself under the slogan "The World 's Favourite Airline". (BA, 1)
business travellersaccount for 50% of passengers and therefore should be a target for marketing and should be included inthe business model. This can be seen as a weakness for not targeting this segment. easyJet’s business model also relies on people flying more often. However, there is a limit as to howoften people fly. The growth is not infinitive, it is possible that the low-cost market will be saturated. Itwill come to a point when the low-cost airlines will not be able to stimulate any more demand fromlow prices. (CPRE: The Future Development of Air Transport in the UK, July 2003
Jetstar Airways is an Australian low-cost airline headquartered in Melbourne, Australia.[3][4] It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue (now known as Virgin Australia). The airline operates an extensive domestic network as well as regional and international services from its main base at Melbourne Airport,[5] using a mixed fleet of Airbus A320 family and Airbus A330 aircraft. Parent company Qantas also has stakes in sister companies Jetstar Asia Airways and Valuair in Singapore, Jetstar Pacific Airlines in Vietnam and the new Japanese carrier Jetstar Japan. Jetstar shares its parent's strong competition with Australia's biggest low-cost carrier Virgin Australia. Both Tiger
United Airlines used questionnaires to classify their potential customers by their motivations and identified nine motivational segment profiles which are: global executives, schedule optimizers, corporate troopers, mile accumulators, reluctant travelers, tour takers, quality vacationers, travel seekers, and frugal flyers (The Times 100, 2003, p. 2). The reasons why travelers choose to fly United varies. For example, some may choose this airline because of price, while others choose it because of their frequent flyer program, schedules, or other services.
Competitors in the air travel business have to overcome several hurdles to maintain a market share and even more to increase it. Southwest Airlines has become a leader, with regards to ticketed seats, with the simple strategy: low-cost and no-frills combined with a crew that is well groomed in customer satisfaction. Southwest’s business strategy focuses on their record turnaround times at the gate, customer satisfaction, and employee satisfaction. Along with this focus, their frugal spending habits have built a highly profitable airline.
despite their growth the airline still remains customer focused, with an emphasis on value for money, unique offerings and high quality service.
Abstract: China 's aviation market was extremely low in 2009 because of the ravages of the global economic crisis, especially in civil aviation industry. Even the state-owned aviation enterprises was not