Strategic Market Management - Essay Example

?Phase Situation Analysis Executive Summary This report provides a situation analysis of British Airways, evaluating the current operations of theairline in order to establish gaps and issues which need improvement. The methods of this paper include an analysis of reports on the operations of the airline, based on competition, how it manages the industry, and the customers, including the internal operations of the airline. Findings are based self-reports, annual reports and analysis of other authors. Based on shorthaul routes, the airline is being faced with competition on air and ground travel with trains taking a huge share in the UK traveling. Based on 2005-2006 figures, British Airways’ market shares reached 47%, however, recent figures indicate that this dropped to 39.7% but these figures still represent a significant share of the. Major shifts have also been seen in terms of consumers which have mostly become older citizens. Consumer behavior has also shifted to the globally and internet connected consumer with more demands on convenience. Issues being faced by the airline include: competition from other airlines, increased demands for other forms of transport, including trains, low satisfaction levels from consumers, low innovation as well as poor reliability. Phase 2 Executive Summary Based on the analysis of British Airways, possible objectives for its improvement are important considerations and this paper shall primarily cover the strategies and recommendations for the airline in order to improve its marketability. This second phase of the marketing report on British Airways shall be carried out through an exploration of current plan of action and other effective measures needed by the airline in order to improve its business. The primary objective for British Airways is to increase their customers and market share in the long haul category from 63% to 70% by December 2013. Opportunities for competitive advantage can be implemented in order to ensure its efficacy in the long haul market. For targeting consumers, British Airways needs to determine the importance of every consumer and how services must be individualised to their needs. British Airways must therefore seek to offer a fun and innovative services, as well as quality services on convenient locations for consumers. It must also offer flights worldwide in the upper class, premium economy, and economy categories. Moreover, BA must exploit the weaknesses of its competitors and capitalize on its brand as Britain’s premiere airline. Maintaining their patronage must be directed towards ensuring a steady stream of consumers, offering the best services, catering to their needs, and focusing on the quality of their services, including the competitive edge they can maintain against other airlines. Reflective overview The Strategic Marketing Management’s module objectives mainly provide students with knowledge and skills in developing and implementing marketing strategies in order to help their (future or current) organisations gain superior competitive advantages (Strategic Marketing Management’s module handbook, 2012). Based on these objectives as well, there are many potential strategies conveyed to marketing students, including myself, by the nature of the module teaching where I have gained experiences, both within and outside the classroom setting. The potential strategies, in relation to the selective approaches as methods from the module and module tutors, were considered, exercised, analysed and implemented by the student in terms of the following: Customer analysis, Competitor analysis, Industry analysis, Environmental analysis, Internal analysis, SWOT analysis (strengths, weakness, opportunities and threats) as well as marketing mix strategy with key methods provided both from lecture and seminar class; general lecture class; related books and websites; residential trips; and assignments (both group work and individual ones). Implementing above strategies with sample case or situation setting was the challenging task. Moreover, in order to clearly identify and apply specific strategies in any business venture required adequate resources. This is because particular knowledge and skills were needed in order to make an effective marketing plan with efficient decision making patterns. Regarding resources (and sources) required for those compulsory assignments, it was not an easy task for me to remember all sub points of each strategy through lectures without any mock up situation and in depth discussion on specific areas. The process included the establishment of sample strategies, as well as reading all strategies through books like theories. However, with the limited time and current teaching approaches, I firstly had a great experience (in this module) in producing the group assignment by residential trip as it provided me with real life insights on organizations as case studies. Therefore, visiting Royal Botanic Garden and attending the class of Mr. Alan P Bennell, Head of Visitor Services of Royal Botanic Garden Edinburgh helped me obtain significant information on the real environment of the organization. My experience helped me analyse the organisation appropriately. For this case study, the organization was analysed both internally and externally while particular areas were highlighted based on strategies implemented. Elements including: sustainable competitive advantages (SCAs) focusing on its assets and competencies based on SWOT, and the PESTEL (political, economic, social, technological, environmental and legal) analysis of the organization were especially adopted to help understand the situation. It also helped position marketing strategies which would affect the organisation’s growth (Oxford University Press, 2007). Furthermore, there were other strategies employed to help me analyse the airline industry in the UK with a selective company like British Airways. The second assignment with the topic mentioned previously, enabled me to do more research about British Airways, its main rivals and other crucial areas with: Porter five forces’ analytical tool (Threat of Competitive Rivalry, Threat of New Entrants, Threat of substitute products or services, Bargaining Power of Supplier and Bargaining Power of Customers)(Aaker, 2010). These tools were used to analyse the company especially focused on industry (analysis) as well as positioning strategy that for the airline. Likewise, in the portfolio, the student was required to provide potential strategies as to lessen what the company was impacted, based on Marketing mix as product strategy and price strategy. The threat of competition from other airlines was also considered. Furthermore, the third assignment as marketing report which divided in two parts based on different aims of assessment, was a very significant, as well as challenging task based on potential strategies: Customer analysis, Competitor analysis, Industry analysis, Environmental analysis, Internal analysis, SWOT to selective company as British Airways. These areas and aspects would provide the light on developing key strategies that mainly seek to achieve higher level of customer satisfaction through high quality and innovative services, and superior competitive advantages. Respectively, I have had more knowledge in marketing management since I started studying on this module. Gaining more analysis methods by various potential strategies was the first significant point where the module has met one of my expectations. Moreover, sharing ideas and discussing in term of marketing with other marketing students was an additional benefit as well. Obtaining value information in marketing area from all expert people, including the tutors and reading related books, websites, journal articles were also essential in furthering my study and career. In addition, it would be a more valuable experience where more practices in other cases are applied, including more residential trips, extended time to exercise on sample cases, and acquiring more suggestions from experts in order to help marketing students gain more self-confident in implementing any strategies for effective outcomes. References Aaker, DA, and McLoughlin, D, (2010), Strategic Market Management, Global Perspectives, Wiley and Sons, Inc. PESTEL analysis of the macro-environment (2007). Oxford University Press. Available from http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm [Accessed 20 July 2012] Strategic Marketing Management’s module handbook. 2012. MKT4100 Module Handbook Jan 2012. 3. Read More