Individual Marketing Plan Analysis - Essay Example

Individual Marketing Plan Table of Contents Introduction 3 Project Aim 3 Discussion 4 Present Market Analysis 4 Analysis 5 Marketing Plan 5 Product 5 Pricing 6 Place 7 Promotion 7 Market Segmentation 8 Target Customers 9 Conclusion 9 References 11 Introduction British Airways, over multiple years, has held the position of being a profound leader of the international airline services. The airline brand in the present market scenario comprises of the largest fleet size catering to the increasing global transportation requirements. Its establishment took place in the year 1974, when two separate airline corporations namely the ‘British Overseas Airways Corporation’ and the ‘British European Airways’ merged together as one specific enterprise and British Airways was formed. Regardless of its effective management, this airline was subjected to massive financial losses during the period of 2010, As a result of minimization in its passenger count and increase in the flight charges (Guardian News and Media Limited, 2014). The potentiality of this airline was also affected by the economic turmoil during the period of 2009 that turned out as a disastrous chain of events against the premium flight service suit that this brand has developed over its functional years (IG, 2014). Taking these aspects into consideration, the discussion henceforth will focus towards creating a marketing plan for boosting up the business process of British Airways in the near future. The detailed elaborations of such aspects have been provided in the later portion of the discussions. Project Aim The aim of this paper will be to develop a plan for structuring of an appropriate marketing plan that will support British Airways in boosting up its sales in the upcoming turn of events. Discussion Present Market Analysis The success rate of the marketing plan associated with British Airways will specifically rely upon the present situation of the UK market. As per the current records, the economic conditions prevailing within the UK has stabilized to a major extent after being subjected to the 2009 economic recession. The stabilization factor also encompasses the growth of tourism and other business sectors that has the potential of laying intensive positive impacts towards the growth of this leading airline brand. Previous records in this respect points toward the excessive travel rates of this brand, within low-income economies, that resulted in its decline (IBISWorld, 2014). Thus, the primary marketing strategy that is worth suggesting concentrates on the development of cost effective travel packages that will help the brand in regaining its hold over the competitive flight travel market. In addition, the growing pace of the small and medium scale business processes has also supported the need for increasing flight travels, creating a potential market space for growth (BA Media Ltd., 2013). However, the period after the 2009 recession, has also addressed the introduction of multiple new players within the market that has eventually increased competitive risk for British Airways. Thus, from one perspective, the present UK market projects a potential growth opportunity for British Airways in context to regain its leadership position. Whereas, on the other hand, it subjugate the deteriorated state of this brand against the increasing market competition, thus forcing it to structure survival alternatives (BA Media Ltd., 2013). Customer Analysis The present economic scenario of the UK, projects about its stabilizing trend. Thus, a perception can be made regarding the increasing financial stability within the UK’s inhabitants. However, due to the implementation of tighter taxation policies, the level of disposable income within the UK inhabitants are ought to decline by considerable rates. Thus, from an overall perspective it can be stated that in the present scenario, the UK inhabitants will have the potential of expensing by limited amounts (Johnston & Clark, 2007). Marketing Plan The marketing strategy associated with product and service promotion of British Airways can be attained by taking reference of the 4Ps of marketing. Below mentioned section specifically illustrates about the product, price, price, place and promotion associated with this brand along with the necessary changes that are needed to be brought about for attaining control on the present market scenario. Product The present scenario of the UK domestic market appears futile due to increasing population density and tightening of the tax regulation that are being imposed upon the economy by the present government structure (Johnston & Clark, 2007). In fact, one can perceive about market scenario of the UK as stagnated. Moreover, the inflow of lower pieced competitors has further deteriorated that entire situation by a major extent. Considering this, British Airways appeared to have structured certain strategies related to the introduction of cost effective domestic and international flight services with the intention of specifically targeting the middle segment customers (Johnston & Clark, 2007). In addition, it has also projected its intention of continuing with few of its luxurious airline services, specifically aimed towards the higher segment customers or business groups. Through these strategies, British Airways perceives about its chances of getting higher count of customers within the UK markets. Likewise, the brand also intends to utilize its airbus fleets for commencing freight transport operations. As a factual reinforcement, British Airways stated regarding their perceived potentials of attaining higher profitability through the commencement of international and domestic freight transport services (Johnston & Clark, 2007). Pricing Rather than remaining confined to the service structuring, British Airways also projected its plans of bringing in considerable amount of changes within the existing price structures. For instance, this airlines brand has strategized reducing the prices associated with the domestic flight travel services. However, it has also projected its plan of making certain modifications within its international flight services based upon the travel classes chosen by the passengers. Through such price modifications, British Airways intends to generate considerable proportion of its revenue (Gregory, 2010). Likewise, lowering of the flight charges within domestic travels are done with the specific intention of attaining higher count of domestic customers that will also support the brand with the attainment of appreciable profit percentage. Besides, the brand also appears to have identified the growth potentials of the present global logistics sector. In subsequence, it has structured a specific freight pricing plan that is ought to increase by a specific percentage, once the upper limit associated with goods allowance exceeds (Fitzsimmons & Fitzsimmons, 2000). Place The two above sections specifically illustrates about the type of service and the pricing strategies that British Airways intends to implement with the intention of attaining back the market position and reputation that it had prior to the 2009 recession period. However, the present state of the UK markets projects a tough challenge for this brand in context to the attainment of its perceived objectives (Hirst, n.d.). Actually, this leading airline brand, in the present market scenario, has elaborated its aim for targeting the airline market within multiple allied nations, wherein the economic health and flexibility within the governmental reforms both persists simultaneously. China, with its continued economic growth, projects a potential business opportunity for British Airways, which intends towards specifically targeting the Chinese airline market with the intention of spreading high level of brand awareness and subsequently, attaining a higher density of interested customers (Brownsell, 2008). Promotion Likewise, to the other aspects, promotion within the marketing plan of British Airways can be categorized as another crucial aspect that if effectively implemented, will support the success factor of this brand in the long run. It is in this context that British Airways will have to make intensive efforts in context to projecting their perceived marketing strategies to the targeted customer groups (British Airwaysc, n.d.). Specific focus towards the utilization of mass media, such as television promotion, newspaper and magazine promotion among others have also been made for propagating the brand’s promotional plans to a greater density of population. The brand also projected its intentions of introducing appropriate percentile discounts for regular travellers and business groups with the intention of attracting them. Associated brand and service promotion strategies of this brand also encompasses its active participation within the areas of sustainability and new service development initiatives. Precision, sophistication and uniqueness have always been the core aspects of this brand and thus, it intends utilizing these factors within its present promotional techniques for creating a presentable brand image of itself in front of the targeted customers (Prokesch, 1995). Market Segmentation Currently, British Airways has been competing against multiple airline competitors such as Virgin Atlantic Airways, Easy Jet, Eastern Airways and Jet2 among others. Moreover, by evaluating the overall scenario on logical grounds, one can easily perceive about the level of competition British Airways is ought to witness from the low priced airline services. Considering this risk factor, British Airways will need to emphasize certain specific segmentation criteria such as demographic segmentation, psychological and Behavioral segmentation among others (Boland & et. al., n.d.). Justification regarding such aspects can be provided by taking consideration of the fact that these segmentation parameters are the prime elements that will support the survival and development of British Airways within the new markets where it is intending to get established. In context to the Behavioral segmentation, passengers belonging the middle or lower income groups are perceived to be highly price sensitive, which in turn make it challenging British Airways to serve the global dimension in a cost effective manner. In fact, if the marketing and pricing strategies are not modified accordingly, a potential chance will always exist where British Airways might even loose a considerable count of customers belonging to the lower or middle-income groups (British Airwaysb, 2014). Target Customers The core intention of British Airways has always remained focused towards projecting itself as a premium flight service provision organization. However, attainment of such core intention might turn out to be difficult in the present level of market competition. British Airways will therefore have to target a higher count of customers, specifically those belonging from the middle and higher segments of economic classes. Moreover, this airline brand will also have to structure its flight charges and packages based upon the demographically and psychologically varied customers within both the target group categories in an effective manner. Failure to the compliance of such practices might result in bringing down the future growth opportunity for re-stabilizing airline brand in the future times (British Airways, 2014). Conclusion The above discussion has been highly effective in context to evaluating a new marketing plan that is intended to support the growth factor of British Airlines after its subjection to the 2009 recession. The facts mentioned within the discussion pointed out to the necessity of this brand in context to coming up with alternatives for surviving the increasing competitiveness of the airline market within UK. The discussion also encompasses facts related to the existing brand image and the fleet size possessed by British Airways before it is subjected to the economic recession again. As a matter of fact, specific alternative were identified regarding how British Airways could use its existing fleet for catering the services it intends to provide to its customers through implementation of new strategies. Besides, the marketing details mentioned within the 4Ps section also elaborates about the possible pricing strategies that will have to implemented by British Airways with the intention of attaining higher customers base and appreciable market exposure. References British Airways, 2014. 2009/10 Annual Report and Accounts. Our Strategy and Objectives, pp 27-32. British Airwaysb, No Date. Extra and Overweight Baggage. Information. [Online] Available at: http://www.britishairways.com/en-gb/information/baggage-essentials/extra-overweight-baggage [Accessed December 05, 2014]. BA Media Ltd., 2013. We sell advertising opportunities on behalf of British Airways. Home. [Online] Available at: http://www.bamedia.co.uk/ [Accessed December 05, 2014]. Brownsell, A., 2008. British Airways Campaign To Target Leisure Travellers. Knowledge. [Online] Available at: http://www.marketingmagazine.co.uk/article/857630/british-airways-campaign-target-leisure-travellers [Accessed December 05, 2014]. Boland, D. & et. al., No Date. The Future of CRM in the Airline Industry: A New Paradigm for Customer Management. IBM Institute for Business Value, pp. 1-19. British Airwaysc, No Date. What Is Responsible Flying For Everyone? Climate Action, pp.1-9. Fitzsimmons, J. & Fitzsimmons, M. J., 2000. New Service Development: Creating Memorable Experiences. SAGE Guardian News and Media Limited, 2014. ECB Cuts Eurozone Growth Forecasts And Fails To Deliver QE For Christmas. News. [Online] Available at: http://www.theguardian.com/business/2014/dec/04/ecb-cuts-eurozone-growth-forecasts-quantitative-easing [Accessed December 05, 2014]. Gregory, M., 2010. Dirty Tricks: British Airways Secret War against Virgin Atlantic. Random House. Hirst, T., No Date. Putin Just Announced A Massive Foreign Currency Bailout For Russias Collapsing Banks. Tech. [Online] Available at: http://uk.businessinsider.com/putin-russia-emergency-funds-bank-bailout-dollar-2014-12 [Accessed December 05, 2014]. IG, 2014. Market Update. News and Analysis. [Online] Available at: http://www.ig.com/uk/market-news-and-analysis [Accessed December 05, 2014]. IBISWorld, 2014. Industry Research Reports. UK Industry Reports Available. [Online] Available at: http://www.ibisworld.co.uk/ [Accessed December 05, 2014]. Johnston, R. & Clark, G., 2007. Service Operations Management: Improving Service Delivery, 2/E. Pearson Education Prokesch, S., 1995. Competing on Customer Service: An Interview with British Airways’ Sir Colin Marshall. Branding. [Online] Available at: https://hbr.org/1995/11/competing-on-customer-service-an-interview-with-british-airways-sir-colin-marshall [Accessed December 05, 2014]. Read More