Market Segmentation

1002 WordsMay 17, 20105 Pages
Market segmentation Market consists of large number of actual and potential customers. The process of splitting the market into different groups or segments based on the needs, characteristics or buyer behavior is called as Segmentation (Kotler, Brown, Adam, and Armstrong, 2007). Singapore Airlines (SIA) has used traditional approach adopted by legacy carriers for segmentation. SIA focuses on business travelers and the price sensitive leisure travelers. The business paradigm of SIA has clearly differentiated these two segments by catering to their heterogonous need. In order to penetrate their existing market and expand their revenue base they are also focusing on additional segment based on consumer loyalty. The increasing revenue of…show more content…
SIA positions itself as a premium luxury carrier. SIA portrays itself as an airline that provides all the luxuries that one may desire while travelling, be it comforts, a hospitable crew or an overwhelming in-flight experience. The primary message used by SIA, is self explanatory; A Great Way to Fly (Singapore Airlines, 2009). The marketing strategy has been consistent all the way, the message that SIA wants to send across to the target market is that; it is the best airline in its segment. SIA joined the Star Alliance in 2000, which is the first and the largest airline alliance of its kind (Singapore Airlines, 2009). The “Singapore Girl” strategy was a very influential idea that gave SIA the push it needed and went on to become a very successful brand icon (Roll, 2009). This brand personality of “Singapore Girl” further helps them reaffirm their position as an airline which provides high level of hospitality. Brand positioning for SIA is depicted in the diagram shown below. The strategy adapted by SIA is to position themselves as a high quality and high value brand and especially with the “Singapore Girl” concept they show the level of hospitality offered to the customers. SIA positions itself away from the competitors in every class, be it economy class, business class or first class. In the above diagram; AIQ – AirAsia ALK – Srilankan Airlines DLH –
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