Overview of Marketing Plan for Cathay Pacific - Essay Example

? Marketing Concepts and Planning Of Cathay Pacific Introduction and Overview of Marketing Plan for Cathay Pacific Cathay pacific is a global airline established in 1964, which is based in Hong Kong and providing traveller services and freight services to over one hundred and ten endpoints in the whole world. It is an emblem low-loader of Hong Kong with its main base at Hong Kong global airfield. Cathay pacific airways have experienced various transformations and modifications for the past few years in order to strive with other (Carol 2009, p.90). The main aim of Cathay Pacific is to grow into the world`s most respected airline through its higher distribution of service and client standards. The company believes that their business is marketing knowledge to the travellers. Accordingly, the company is dedicated to Hong Kong where it was established as it continues to make substantial investments to create Hong Kong’s aviation industry and improve the position for Hong Kong as a regional transportation hub. Furthermore, additional to fleet of aircraft, the company also invests in food preparation, aircraft repairs and ground management companies. To Cathay Pacific, a great airlift is not just concerned with the offering of a charming check-in, delicious food and relaxed seats; it is about knowing what a customer desires before they need to request. This is Cathay Pacific company considers that the factual long-term distinction between themselves and their rivals is the exclusive service elegance offered by their staff. Research has shown that their service has an even superior influence on travellers' opinions than the product they provide (Danny 2006, p. 78). To Cathay Pacific, this shows that training and advancing in their workforce has just as noteworthy profit as their venture in extraordinary technology. For this reason, they have been concentrating or aiming at evolving a culture of service quality. They call this new culture 'Service Honest from the Heart.' Segmentation, Targeting And Positioning Decisions of Cathay Pacific Cathay Pacific is the sphere`s third most cost-effective air company. It is registered and grounded in Hong Kong and at present hires over twenty thousand employees. Segmentation, targeting and positioning are the vital methods of marketing plan. Quantity market is separated into minor sections in which clients share the same set of needs and desires (Graydon 2003, p. 87). Sellers recognize sections or fragments and choose the most practicable and cost-effective sections to target. Cathay Pacific targets trade travellers by chosen account database and mice advertisings. Giving emphasis to the dedication to Hong Kong is a distinction positioning approach of Cathay Pacific (Moyo 2005, p. 59). In addition, Cathay Pacific situates itself as an air company giving superiority services from deep down their hearts. Therefore, its present brand building war for reinforcing this position is “Individuals and services.” Cathay Pacific manages the complaints of its clients through various channels including comment card, Website, and frontline employee because the number of objections is a sign, which can reveal client approval or contentment indirectly. Accordingly, the company recurrently performs survey concerning the contentment of clients proactively (Greenley 2005, p. 123). The outcome of the contentment shows that client is fulfilled with Cathay Pacific`s services. Content clients lead to client reliability and, in turn, improve brand justice. Nevertheless, Cathay Pacific still copes with two tiered reliability program to uphold and enhance customer reliability. According to Robeson (2009, p.89), segmentation, targeting and positioning are interrelated steps for planning marketing stratagem. Segmentation has been identified to encompass apportioning the market into numerous smaller sections with comparatively consistent client needs and desires. Targeting includes a company`s choice of deciding on one or more target sections to attend. On the other hand, positioning includes the planning of marketing practices in order to position a brand or a market providing in mind of clients. Conventionally, Cathay Pacific use conveyance class to segment their clients into commercial and low-cost travellers. Thus, a result, they plan flexible products and services for business travellers and low cost for economy travellers. Some of the criteria used to estimate the efficiency of the segmentation strategy includes quantifiable, sizable, reachable, differentiable, and actionable. The role of a seller is to recognize the sections and chose which section or sections to target. There are various sets of target market selection and this involves solitary section focus, selective specialty. Market specialism, product specialism and complete market analysis; Cathay Pacific involves four forms of spaces and they include first class, corporate class core level, corporate class higher level, and low-cost class. It appears to ensemble the customary company and small rate subdivision. Nevertheless, Cathay Pacific seems to use behavioral variable, occasions as its subdivisions base. Desired account platform is the promotion movement for aiming the commercial passengers maintained by their company. In addition, Mice advertisings are the marketing campaign to meet the requirements of mice passengers. Cathay Pacific is a planned commercial section for aiding vacation passengers. Cathay Pacific approves the careful specialism as its market-targeting stratagem. This multi sector scheme has the advantage of varying the business threat of Cathay Pacific. According to studies, Cathay Pacific has distinguished itself from other air company by positioning Cathay pacific as the Hong Kong centered Air Company and its zealous employees. Cathay Pacific has never given up any opportunity to restate, as it is a global airline registered and grounded in Hong Kong. In 2004, CX threw a wide-ranging assimilated media plan for a new branding promotion termed “People & Service”. The promotion emphasizes Cathay Pacific’s ongoing devotion to providing all of its customers with exceptional service by concentrating on the behaviors and attitudes of individual associates of workers. Marketing Objectives Promoting purposes according to investigations is the universal purpose of marketing strategy. It is a detailed declaration for other marketing plan in terms of trades capacity or market segment; the industry of aviation is experiencing hardships in the twenty first century. This is because of the overall commercial go-slow and the effect of the United State terrorist violence results into a reduction in the industry. In this hostile condition, it is vital for Cathay Pacific airways to sustain the prevailing market portion and to upsurge its effectiveness of the company. It can be achieved through enhancing or reforming its product to fulfill the needs or the desires of the travellers. Therefore, because of this, the company has decided to try its best to stand at the advance position in the market and dedicate its target to uphold the price and income at breakeven position. Therefore, there are various objectives established for Cathay Pacific and they comprise examining the current and future problems and difficulties that it encounters. Another objective is to detect its strengths and flaws in the air travel industry; to classify the requirements of the clients in order to enhance present products and design the most appropriate goods to fulfill the needs of the client. Another objective is to uphold the reliability of the travellers, particularly those everyday flyers and fascinate fresh travellers to expand their market subdivision. It also intends to increase their competitiveness through enhancing the image of the company that provides confidence to the clients. Marketing mix (7P’s) decisions The first P concerning the 7Ps of Cathay Pacific airline concerns the product. According to findings, Cathay Pacific is one of the key airlines in Asia offering a wide range of Asian destinations. The corporation has devoted itself in using extraordinary expertise to augment its customer services. For instance, the airline was the first to offer in-flight emails, including online check-in services worldwide. The airline operates in association with Hong Kong Dragon Airlines limited, which serves eighteen destinations in mainland china, in addition to its sixty-two worldwide destinations (Rothwell 2010, p. 30). Customer expectations and wishes were identified through intensive research, and to serve these needs, the airline has formed its own service style. This is facilitated through an internal campaign dabbed “service straight from the heart,” and employees from all areas are intensely trained during workshops to learn and understand the new concept of service provision. This aims at making service delivery unique and uniform in every destination and involving all workers. Studies indicate that hard service products, for instance, seats and entertainment are traditionally easy to copy. Thus, the top management believes that service style should be relatively difficult to imitate. The airline carries more than one million passengers in a month and in conjunction with its one-world partners, it links about one hundred and thirty-five countries covering about five-seventy destinations (Tappan 2006, p. 75). Basing on this, airline opened its new lounge at Hong Kong international Airport, which offers a number of new features; exclusive daybreak rooms, bars, restaurants, and internet links. Following the sprawl`s commencement, it was so-called first in Forbes publication grade of the realm ten finest airfield lounges. Accordingly, Cathay Pacific retained its top-notch performance that led to the launching of the new business class product; this featured one of the longest and widest stretch-flat seats in the airline business; this include an exclusive bar and reception area. The reception area was for meeting and socializing, and it included a private dressing room. The next P is price, where besides the frequent flyer programs, Cathay Pacific airline offers a special pass that travel may use to travel inside Asia and around the world under certain conditions. The two special pass are; Asia pass and World class pass respectively, and they are offered in cooperation with the airline`s sixty-plus partners globally. Despite this, the airline emphasizes its commitment to Hong Kong Community, and in its “world biggest welcome,” the airline give away about ten thousand tickets for Hong Kong residents. Tis tickets allow the residents to invite their relatives to visit Hong Kong; this increases tourism in Hong Kong. In addition, Cathay Pacific bids exceptional reduction of about fifty percent, on low-cost class receipts for Hong Kong high-ranking people. The other marketing mix P is promotion; Cathay Pacific has a marketing slogan that it uses to signify its position in Asia concerning airline business. The slogan is “the heart of Asia,” which implies two meanings; Hong Kong being the economic and logistical heart of south East Asia, and secondly, referring to services being one of their strongest competences. Again, because of the airline`s “Services Straight from the Heart” campaign, the Hong Kong flag carrier gained the best reputation of service. This was in terms of proficiency, generosity, passenger-oriented expediency and coziness in Asia. Cathay supports Hong Kong public undertakings that include; solutes the world, and desert involvement of Hong Kong adolescence confederation every single year. The carrier has also industrialized a setting sociable, vigorous, funding and well-organized appearance in Hong Kong. Moreover, another P is place, where the Airline provides support in terms of tickets for passengers going aboard to bid on overseas projects, and this has made the airline to become the best in inbound passengers attending meetings across the world. Studies show that Cathay Pacific gets more distribution channels from other member airline offices; in essence, the airline has adjusted its tickets sales system, which has made it more flexible in response to market forces. The scale of demand and the time of the year can be used to regulate prices through the employing of the latest technological system. Another P is for physical evidence, which shows that a service be experienced before it is distributed. This implies that deciding to use a service can be a risky business because the consumer is purchasing an intangible item. Therefore, the physical evidence illustrated by Cathay Pacific confirms to the presumptions of the clients. Despite the fact that the client is not in a position to test the service before buying, he or she can inquire form others with experience concerning the services of Cathay Pacific. The sixth P stands for process, which illustrates that the process of providing a service and the character of those who distribute Cathay Pacific`s services are critical to the contentment of the client. Such services could encompass waiting periods, information provide to clients, as well as the helpfulness of the staff are all significant to make clients satisfied. The seventh P stands for people, where this shows that any person who come into contact with the company`s clients or travellers will always make an impression, which can have a profound influence either positive or negative. Therefore, Cathay Pacific ensures that all the workers who have contact with the clients are properly trained and the suitable people for the job. Corporate social responsibility of Cathay Pacific Studies reveal that, Cathay pacific airline has been contributing majorly on Hong Kong’s economy through its investments in people and infrastructure. Moreover, the airline has extended its activities to the communities around it; these extensions are through its expansive corporate social responsibility initiatives. The corporate social responsibility of the airline has been under recognition in many ways. To begin with, the first CSR of the airline is in line with volunteering activities, where the Cathay Pacific volunteers’ team was established in 2007. Cathay Pacific unpaid worker activities meant to provide communal services to the societies in Hong Kong; a number of chief creativities directed the Tung Chung public including other indigent societies in Hong Kong. Essentially, Cathay Pacific in conjunction with the Swire group invested around twelve billion Hong Kong dollars in infrastructure at the International airport in country. This provided employments and other neighborhood facilities for the Tung Chung. There are many initiatives that Cathay Pacific has had concerning the Tung Chung community. The first initiate is the organization of two community flights for around three hundred students and members from underprivileged families. Most of the flight occupants are first-time flyers and the flight was themed to encourage students to practice their English. The air company prearranged charity transactions through its Cathay Pacific volunteers to aid disadvantaged people (Ansoff 2007, p.45). On the other hand, during Christmas giving week, the staff of the airline donated about three thousand items, which were given out as gifts for Tung Chung youngsters including a number of kids. In the years 2008/2009, the airline organized the “Asian youth orchestra family funfest concert,” where five hundred youngsters and their families from the community attended. Moreover, the CX volunteers’ team had other initiatives, for instance, the team helped in arranging Christmas gifts for Sham Shui Po children at Cathay Pacific City (Shanker 2002, p. 96). The CX volunteers’ team and Caritas Hong Kong helped in distributing recycled computers to about one hundred and thirty underprivileged students from Sham Shui Po; this helped in offering basic computer skills. Through the help of volunteers, it was possible to facilitate a post renovation clean-up project for the small group homes under the management by the mother`s choice. On the other hand, Cathay Pacific and UNICEF organized the “change for good” fundraising programme where Cathay Pacific travellers on board get encouraged to donate any spare change to UNICE. The money collected from the travellers is used to fund immunization programmes and healthcare projects in about one hundred and fifty countries in the world. Through this inventiveness, volunteers from Cathay Pacific move to parts in which UNICEF is setting ventures into achievement. The other company social responsibility database under the air company is the ticket funding. Through this database, Cathay Pacific cares for associates of the public through contributions of air permits to encounter travel requirements. The foremost recipients of this programme are ORBIS and Hong Kong civilization for the unsighted. Through its corporate responsibility initiatives, the airline supports the Hong Kong SAR, a governmental new internship programme that targets university graduates. On the other hand, the airline has corporate social responsibility programmes associated with the environment. To begin with, the first programme is the Cathay Pacific intercontinental desert involvement. Through this programme, the airline has been supporting young people from republics and terrains in Asia Pacific region to attend a desert involvement in South Africa. The group of young people selected consists of students below nineteen years who take part in numerous cross-cultural activities as they gain knowledge (McDonald 2002,p.98). For instance, in 2008, students form nine cities, including Hong Kong joined a seven-day ecological course in which the learnt about environmental protection and conservation. The other environmental CSR programme under the airline is the fly greener initiative, where the airline partners with Dragoair to spearhead the voluntary carbon offset arrangement. Through this initiative, can decrease their carbon footprint through the process of offsetting carbon emissions attributable to their journey. Studies show that, carbon offsets provide funding for environmental projects for removing greenhouse gases from the atmosphere, including the prevention of emissions. Moreover, the airline had many other CSR programmes that target the communities around Hong Kong and other areas around the world. The next important CSR initiative revolves around medical facilities and other medical requirements (Kotabe 2004, p. 29). The first therapeutic inventiveness is the Cathay Pacific wheelchair group, which purposes at nurturing funds for acquiring particularly modified wheel chairs for children with neuromuscular illnesses. The programme receives an average of a month`s proceeds from the Cathay Pacific`s ‘change for good’ inflight fundraising programme. Since its inception, wheelchair bank has helped more than three hundred needy children, including support to about two thousand one hundred clinic attendances. The airline has been a key promoter of ‘Project Orbit,’ the solitary flying eye hospice (Hubert 2010, p. 45). Through its support, the airline provides free and discounted air travel for Project Orbit personnel; this enables the project`s volunteer eye surgeons to fly into Hong Kong. The Hong Kong society for the blind, which Cathay Pacific has been providing sponsorship, provides comprehensive services for about seventy-five thousand blind and visually impaired people in Hong Kong. The other medical programme is the Sunnyside club, which is a registered charity that was set up by the airline`s staff, concentrates on improving the well-being of mentally and physically challenged children in Hong Kong. Enlightening inventiveness under the air company comprise the English on air programme, which encompasses English communication Cathy Pacific work from a varied assortment of populations and experiences (Leighton 2006, p. 27). The employee inspires homegrown scholars to exercise their verbal English. Subsequent to its commencement, about seven hundred and twenty-five students from Tung Chung secondary schools got invited to ‘Cathay Pacific City’ to meet and mingle with airline`s volunteers for English-speaking sessions. The other instructive inventiveness is the life edifying movement programme, which communicates to young individuals in Hong Kong concerning the perils of drugs and substance misuse. It also runs discussions concerning peer pressure, decision-making and the human body among other sensitive issues (Hodges 2004, p. 234). Through the airline`s sponsorship, about eighty thousand students from about one hundred and seventy schools attend the LEAP sessions periodically. The last CSR initiative revolves around matters of aviation. In this regard, the first initiative is the Cathay Pacific ‘I can fly’ programme, which is a unique educational concept that combines the essence of social services with aviation expertise. About three thousand students have already graduated from the programme since it started in early 2003 (Leihs 2006, p. 10). In 2007, the programme employed approximately a thousand Hong Kong scholars who had desire for flight and concern in public services. Among the selected students, a hundred came from Cathay Pacific hometown of the Tung Chung community (Johnson 2008, p. 64). These charitable associates result in a sequence of aviation and communal service undertakings during the programme conference. From the members who participate, a hundred who perform exceptionally well receive nominations to take part in reward trips overseas, where they learn more about different aspects of aviation. The other database under aeronautics is the progressive aviation edification course. Accordingly, Cathay Pacific is loyal to supporting homegrown aviation edification (Kohler 2000,p. 83). Thus, the airline has its support concentrated on advanced aviation education programme; usually organized by the Hong Kong air cadet corps. Through the database, associates study about rudimentary flight information. Remaining awardees collect supported vouchers from the air company, which empowers them to hover to Melbourne, Australia for more flying progressions. Plan Evaluation This plan is a good idea because in order to become the sphere’s most respected airline takes vigilant planning. From airlift planning to corporate performance administration, the company endeavors to meet Cathay Pacific’s significant goals of taking full advantage of stakeholder value and improving client gratification (Bhatia 2000,p.67). For instance, it is vital to plan, assess and manage the acquirement and positioning for aircraft and associated incomes; evaluate all potential competitive path complexes to exploit long-term effectiveness with short-term optimization. The plan is also a good idea because it comprises business enhancement. For instance, inaugurating vibrant objectives on revenue, proceeds, cost and their association; increasing interior and exterior performance capacity and watching apparatuses; inspecting corporate procedure and structural arrangement within the enterprise; managing possessions distribution, and in addition, the plan helps in improving global affairs. This is done through developing and protecting business benefits in a greatly regulated and competitive global operating setting. Accordingly it is achieved through managing and improving Cathay`s traffic rights and provide guidance on joint air services consultations (Lowe 2011, p. 34). The plan also involves company emergency development; this involves emergency and calamity reaction, as well as commercial endurance. In conclusion, this research paper had the aim of discussing marketing concepts and planning of Cathay Pacific Airline Company. For instance, Cathay Pacific has distinguished itself from other air company by positioning Cathay pacific as the Hong Kong centered Air Company and its zealous employees. Cathay Pacific has never given up any opportunity to restate, as it is a global airline registered and grounded in Hong Kong. The research also discovered that Cathay Pacific also takes a great role in corporate social responsibility. For instance, Cathay pacific airline has been contributing majorly on Hong Kong’s economy through its investments in people and infrastructure. Moreover, the airline has extended its activities to the communities around it; these extensions are through its expansive corporate social responsibility initiatives. The corporate social responsibility of the airline has been under recognition in many ways. Therefore, this research discussed various marketing issues in details. 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