INTRODUCTION: SAUDI ARABIA AIRLINES (SV) Saudi Airlines (SV) since its establishment in the year 1945 has a stated aim to be one of the best airlines in the world with slogan “" To enhance the reputation of SV and improve its image within the Kingdom and abroad” (Saudi Airlines c, 2012)…
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SV has expanded footings catering section for airlines (Saudi Airlines a, 2012). SV has partnered with Sky team Alliance; a group of 18 international Airlines to provide more flexibility, convenience and choices to customer of member alliances (Saudi Airlines b, 2012). SECTION 1: CHALLENGES AND OBJECTIVES Section 1a: “General” marketing communications challenges ISSUES CHALLENGES 1 Global business is moving around the slogan of “Be Global – Act Local” (Amey, 2012). Globalization &Localization on increasing destination as well as service. 2 Tightening of policies, increasing taxes resulting in job losses; counts up to 1.6 mn in UK in 2010 the trend continues till date (The Economic Times, 2012), US waiting for sustained pick up in consumption, Top ten areas of change in consumer spending worldwide are aimed to be financially considerate (Delotte, 2011). Adopting product marketing that persistently stands business product to be best value for money spent. 3 Spending moved from bricks to clicks and now on to mobile. 52% of US consumers using mobile for purchases overall with more than 20% of air-tickets are purchased through mobile. Availability and adaptability with most digital mediums. 4 51 % rely on online shopping for product search and evaluation. In 2012, 167 million people shopped online with average amount of $1800. Sufficient information with easy purchase option to attract customer base. Accelerated pace of globalization with media in general and social media in specific Performance is open is for anyone and everyone for evaluation; more importantly beyond managements control. Priority challenges and risks: Globalization expansion in China (Amey, 2012). Increased accessibility: increased communication through interactive mobile. Huge risks are associated as increasing pace of digital has not been adopted with similar pace. Currently flight passengers’ account in 58% of Saudis, 22% of Arab and while70% is guest travelers. Consistent travelers are less (for instance, seasonal travelers in holy months). Travelers’ consideration of SV as best value for money can be ranked medium as it ranks n 6th among the top 10 economy class (Sky Trax, 2012) but mainly accounts for the guest. Focusing mainly on guests and not growing business class is risk. Digital connectivity for flight bookings only (Clear Trip, 2012). Industry challenges ISSUES CHALLENGES 1 Post 9/11Security issues. Redeveloping travelers trust along with strong force than 9/11 updates on various mediums. 2 Fuel prices and economic uncertainty increasing continuously shrinking profits. IATA project Airline profit $ 3.0 Bn. Maintaining effective flights schedule and promptly passing on updated information to customer at easiest disposal 3 Deregulation/privatization of airlines; advertising fare regulation (Zacks Equity Research, 2012) Retaining customer along with detailing price component of tax in advertisement 4 Blocks or strategic alliances to maintain Selection of marketing tactic to exploit benefits of alliances and possible issues. Priority challenges & risk 1. SV developed alliance with Sky team gained the benefits cost saving, flexibility etc but not marketed other than press releases updates on member websites (Sky Team, 2012). 2. For increasing efficiency its flight program Al- Fursan has been developed. This program has been provided with internet based marketing as present on the airline’
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