Trans-Global International - Article Example

Running Head: TRANS-GLOBAL INTERNATIONAL and Section # of New Product Development The product idea for trans-world international airlines is that basically they provide something for everyone on their flights; the product idea is that they leave out a portion on their flights and divide them into four sectors, one for the male passengers, the other one for the female passengers and the last one for the children. What can be done is that for the male passengers the airlines can provide games like x-box and play station 3, the male passengers can get a break from their hectic lives and utilize their flying time to refresh their minds by playing such games. For the females there can be a section in which they can get free massages and a beautician who can give them healthy tips about maintaining their beauty, this is very viable as women tend to get tired and lethargic in long flights and need some beauty tips and make up when they get off the flights. For the children there could be a small play area where there are board games and other such stuff with a helper or a care taker that keeps an eye on the children at all times so that during turbulence the care taker can secure the children, even if there is no turbulence a care taker needs to be present so that parents are care free and are able to carry out other practices while their children engage in recreational activities on the flight. This product development idea is very practical and implementable because it does not restrict the customers that get on to the flights of the trans-global international airlines and is very viable in terms of revenue generation as well because the costs for these services is very low but would enable the company to charge a premium price because of the uniqueness of the services that it is providing. The demand for such kind of services is very high because most customers these days have issues with sitting down in a flight for long durations of time and do not have enough leg space or room to move around, such kind of recreational facilities would enable them to get rid of such issues and also let them be mentally relaxed. Segmentation The customer profile for this kind of service is virtually unlimited, as mentioned before the idea is to provide something for everyone but one limitation is that it would be targeted at the upper middle class or the upper classes only because the pricing for these products has to kept in mind, the product has been developed with the upper class in mind because these are the people who need to take breaks in their lives but hardly get a chance to do so, hence the provision of such services in flight would enable them to get away from their hectic schedules and refresh their minds. In terms of age the segmentation would have to be done for people in the age brackets from 25-40 because these are the people that are mostly in need of such services because they have been newly married and they are on the go constantly because of their businesses, an example would be a couple that has just a young child and they have to travel for business purposes, the male can easily relax by playing games, the female does not have to worry about the child and can concentrate on the massage, her beauty and make up where as the child would also feel great because he would not be cramped in one place in the plane but rather he or she would have room to move around in the plane and be able to indulge in recreational activities. Competitor Analysis Such services in the airline industry are generally unheard of but they are being offered in isolation in some of the companies within the aviation industry, for example Emirates has introduced showering facilities for its passengers on board but that facility is available only for passengers that are flying first class with Emirates. Some companies also offer on board massages and again the example of Emirates can be quoted. The positives of this kind of a product are many, first of all it gives the company a unique edge over its competitors because no one has such a comprehensive on board recreational facility and hence it can attract customers from other airlines as well and the goal of attracting customers from EOS and silver jet can be achieved. Secondly it is very viable and can generate quite a handsome amount of revenue for the company. Last but not the least it would give the company immense recognition and word of mouth would create a huge reputation for the company which in return generates customer loyalty for the company and in the long run this is going to be a huge positive for the company as more and more competitive companies would come up with on board facilities similar to Trans-Global International. On the negative side there are some cost factors involved as well because creating such compartments within the airliners is not going to be an easy task at all, seats might have to be removed to create room resulting in loss of revenue but that can be seen as the opportunity cost of providing an innovative recreational on board facility. Another negative is that such an innovative facility creates rooms for error and concerns about security of the passengers, these would have to be addressed. Pricing Startegy The pricing strategy for such a product would definitely have to be premium pricing and the company can be said to engage in the skimming price strategy, whereby it generates highest possible profits while the product is still innovative and new in the market. The strategy to charge for such facilities should be added to the ticket prices because collection of the money on the airliner itself can pose a problem and higher costs in terms of collection and can also lead to higher costs because checks and balances would have to be kept then to ensure that no there is no room for the employees to be involved in any sort of theft. References Trott , P. (2008). New Product Development. Pearson Education Read More