Sustainable Marketing for Emirates Airline - Essay Example

? Sustainable Marketing Plan for Emirates Airline Table of Contents Introduction 2 Marketing Mix 4 Hub Plan 4 The Airbus Hub Enticement 7 Getting the Message Out 9 Repositioning 10 Marketing Budget and Implementation 11 Marketing Budget and Time Frame for Stage I 12 Bibliography and References 13 Introduction = 500 Emirates Airlines, based in Dubai, UAE, has grown from its first fleet of two planes, a Boeing 737 and an Airbus 300B4, in 1985 to a fleet of more than 180 aircraft in 2012. As stated from the very beginning of operations, ‘quality, not quantity,’ (Emirates Global, 2012) has always been its motto in providing exceptional service, whether it be on how to purchase tickets to flying on board in spacious seating arrangements, friendly crews, entertainment and meals served. Emirates Airlines ensures that passengers have the best experience possible while flying, no matter in which class a passenger is flying. Currently, Emirates Airlines has 1,000 flights leaving Dubai every week to six continents and nearly 40% of airline traffic in the Dubai International Airport consists of flights by Emirates Airlines out of Terminal 3. It is also the largest world-wide operator of the Airbus A380. In continuing its growth in the global airline market, a new Airbus Hub will be opening soon to accommodate Emirates’ large fleet of Airbus planes. The Hub will contain shopping and dining areas, first class and business class lounges that lead right on to the planes, and a first-class hotel with both four-star and five-star rooms for overnight accommodations (Emirates Global, 2012). Fig. 1(Emirates Airbus Hub, 2012) In September 2012, Qantas of Australia signed an agreement with Emirates for joint use of the new hub in Dubai, thus opening up new markets for both companies. As part of the agreement, Qantas now moves its current Airbus hub from Singapore to Dubai, providing world-class seamless traveling to all parts of the globe and include it frequent flyer benefits program. This also means far more traffic through the Dubai Hub, providing customers for its shops, restaurants and its world-class hotel, a huge bonus for travellers making very long journeys who would prefer to stay overnight at the hotel instead of just getting onto another plane. While neither airlines has equity in the other, there will be a sharing of benefits such as the network collaboration of coordinated scheduling of flights, ticket sales and a seamless transition from one airline to another for those travellers who need it ( Dubai Hub, 2012). Currently, the Airbus 380 planes are used by seven global airlines: Qantas, Emirates, Singapore Airlines, Air France, Lufthansa, Korean Airlines and China Southern (Waugh, 2012). The marketing plan goal: to align Qantas and Emirates as major brands names in the Airbus airline industry; to create a buzz as offering the best benefits by flying with either airline; and to induce other Airbus 380 airlines to join in partnership with the Emirates Hub (3Bs). This also benefits passengers who receive special high-value benefits by flying through the Hub; promotes international flying on Airbus airplanes as the most valued way to go; and finally, brings in more profits through customer acquisition, Airbus acquisition to the Hub, and sustainable income with profits seen within the first two years of the program (3BL). Marketing Mix = 2000 Hub Customer Plan The marketing mix for customers in this plan consists of all first class and business class passengers who use the Airbus fleets of the two airlines currently signed to the new Emirates Hub. As part of the acquisition, retention and add-on selling process (ARA), the intention is for first-time Airbus Hub flyers to receive exceptional bonuses when flying through the Dubai Hub for the first time. This first stage will include a free night at the hotel, based on the flying status of the customer, whether first class or business class. This is a major bonus because people will love the hotel once they have experienced its fine services and exceptionally designed rooms. Each class of rooms and suites has been designed with the customer in mind, making each stay a memorable one (Emirates Global, 2012). For those customers who are not staying overnight, they will receive coupons to two stores and one restaurant of their choice. They will be given those choices at the time of ticket purchase. Those coupons can be sent to them along with the ticket, or sent by email and printed out, or they can be picked up at the ticket counter when they check in. When flying for the first time through the Hub, the coupons will be a 25% discount for each store and restaurant, which can be redeemed at any time when showing their tickets at the time of purchase. All flights tickets after that will produce coupons at 10% off for one store and one restaurant. If, at a later date within the first year of flying the Airbus service through the Hub, they should choose to stay at the hotel, the first night will be free but no coupons will be given out for that flight span. However, the rewards plan will continue in place to generate points for future benefits. The first class and business class are targeted for this service because the first class represents those with enough money to experience the rewards of the finest service Emirates Airlines can provide. This customer profile consists mainly of the wealthy, high-level politicians and entourage, and those making a special once-in-a-lifetime trip. The first class suite allows for a passenger to close off the seating area and enjoy private time reading or working or just to rest. Included with the suite is a mini bar and seating can be adjusted by the crew to a bed if the need for sleep arises. Also included for both first class and business class is Internet service, phone and SMS service so that each customer stays connected when working or needing to stay in touch with people. Emirates First Class Luxury Fig 2. (Emirates Global, 2012) The business class customer is also a target because of the global business market in today’s world where top level executives need to make face-to-face meetings with potential partners in a global environment. The likelihood is very high that these business customers will make trips several times a year during on-going negotiations and in future business arrangements with other members of those same companies. Consequently, both customer types are in a perfect position to recommend their wonderful experiences on Emirates Airlines when speaking with other business partners around the world. In a time when most other airlines are providing less than wonderful experiences in their plane services, such as in very tight seating and no refreshments, the Emirates experience could only be viewed in a very positive light. Many customers will pay more to get a far better experience than being stuck in a sardine-can-styled flying experience. While this plan initially targets current customers, the plan is to have the special deals that current customers will tell their friends and business acquaintances about, thus providing a generation of new customers who want to try this exemplary service, especially when special deals are attached to an already great service. In light of targeting these two specific customers, this is also an incentive for other airline companies to consider teaming up with Emirates to access the new Hub as it begins servicing the Airbus planes from Emirates and Qantas. Once the Hub is fully operational and the operational systems are in full gear, this will allow Emirates to add more Airbus airlines to join the Hub family, particularly if the current plan entices more passengers to fly by Airbus so they can experience the Hub services. The Emirates Business Service Fig.3 (Emirates Global, 2012) The Airbus Hub Enticement With Emirates and Qantas currently the two Airbus fleets operating out of the new Dubai Hub, it is hoped that other Airbus airlines will sign on in the near future. The Emirates Airlines Airbus fleet is serviced by an exemplary expert team of Airbus specialists and technicians who are familiar with the fleet operations from top to bottom. This team, consisting of highly trained maintenance specialists will service all the fleets, not just the Emirates, and are tested once a year for continued qualifications and upgrading in skills. Each team member begins with a three-year intensified programme of an engineering education in learning how to conduct proper coded maintenance procedures for all parts of the plane. This ensures a high quality of maintenance from an educated engineering specialist (Aircraft Avionics, 2012). As a bonus to the global fleets who sign on to utilize the Dubai Hub, each airplane will be fully inspected by these engineers when it first flies into the Hub. Any cracks and other malfunctions will require the plane to be pulled and serviced before being allowed to proceed to another country and a fully serviced, inspected plane will replace it. The service log will be maintained every time a plane comes in so that perfect service and safety records are constantly updated. As some airlines currently run older planes, the airlines in question will require that, after a certain amount of years at the Hub, the airlines will need to replace that plane if it is deemed to be too old to maintain it any further. Making the use of the Hub under a partnership, such as the current Qantas agreement provides, opens many opportunities for other companies to find ways of expanding their own customer base in a number of ways. This prospect is a very sustainable program which is constantly open for further improvement based on on-going market research of issues and problems and finding ways to improve services which help the companies aligned with Emirates and benefits customers to the highest level (Aircraft Avionics, 2012). This will also ensure that customers know that each plane they fly out of the Hub on has been thoroughly inspected and maintained so that nothing goes wrong on their flight. While one should expect that safety measure from each flight taken anywhere in the world, past history has shown in other airlines that maintenance has been somewhat lacking and the Dubai Hub and Emirates wish to ensure that this never happens with any plane that moves through the Hub (Waugh, 2012). Some of the great milestones for the Emirates Group this year have been that in November, 2012, Emirates SkyCargo received the Air Cargo Carrier of the Year award which recognizes excellence in the freight and logistics area. Emirates also won the same award five other times: 2004, 2005, 2006, 2008, and in 2010. On December 5th, 2012, Emirates won the Airline of the Year Award for the third time. This news shows that the airlines has achieved great success in the airlines industry and is currently poised to become a potential leader in partnerships with other airline companies, thus providing even better services to its customers (Emirates Global, 2012) With this kind of industry success and recognition, this also is a great tool for bargaining with other airlines to come on board with the Emirates Hub partnership. Other new ventures in recent news has been the introduction of shuttle service for first class and business class customers so they can transfer to other flights easily and seamlessly from their planes to other connecting flights (Emirates Global, 2012) Emirates Airbus 380 has also begun flights to Singapore and Moscow in December 2012 thus making a total of 20 different destinations on its current global flight routes. Getting the Message Out This is the perfect time to utilize the Emirates current customer relationship management (CRM) system of all first class and business class fliers on record who have travelled at least once in the past 10 years. Sending out advertising literature by regular mail is one way to begin promoting attention to those currently flying into Dubai, perhaps on other plane models such as the 747 and the 777. The second method is to utilize social media by advertising through the Emirates Facebook page and allowing customers to pick up special incentives by buying their tickets from a Facebook advertising link. The Emirates Facebook page puts out a wealth of information and up-to-date news and has just reached one million fans on its page. This will be a great place to spread the word about incentives for taking an Emirates Airlines flight into Dubai when the Hub is finally operating. Other forms of social media can be explored such as using the QR codes system to provide services by just showing a personal QR (quick response) code assigned by Emirates to each valued customer that allows for certain services to come at a discount. The code can be scanned at the ticket counter to pick up tickets or to pay for services without having to pull out the wallet to pay. There are unlimited opportunities for utilizing this service as part of a benefits package for valued customers. Advertisements can also be made through any global business journals that are specifically geared for those who travel often. Travel journals are also included in the advertising mix as well as online advertising with travel groups that target both private wealthy citizens and high level global business companies. Emirates Receives One Million Facebook Fans Fig. (Emirates Facebook 2012) Promotional literature, white papers, case studies (Qantas) can be generated for distribution to other airline executives that potentially could become partners in utilizing the Emirates Airbus Hub. Videos of services that can be provided to airlines that join the partnership would also be beneficial because it helps to see and envision the possibilities of what could be gained in such a partnership besides just reading about it. As a point to be made and understood, the Emirates Group is owned by the royal family of the UAE and therefore, has substantial financial backing. What might be viewed as a tremendous expenditure in advertising, benefits and bonuses, will ultimately bring a far bigger return in financial development if the target of global partnership through the Hub is realized. Repositioning = 100 The view of this marketing plan is that it will reposition Emirates as a major global partner and a central hub for all flights travelling around the world. The Emirates Airbus Hub will become more than just a centre for all Airbus planes to come through on their way to other destination. For the airline companies that will align themselves with the Hub operations, this promotes a care and service not only for its customers but also ensuring that planes will receive the highest attention to maintenance and quality supervision. It will also open up opportunities to further route development. The Positioning Map on the next page shows how the Emirates Airlines has positioned itself as the biggest, highest producing Airbus Hub centre world-wide. This will provide incentive for other Airbus airlines to partner in and take advantage of the Hub’s benefits in the offering and bring in more money to the airlines collectively. The Positioning Map Emirates Airlines Qantas Airlines Singapore Airlines Air France Other Airbus 380 Airlines Marketing Budget and Implementation = 400 The budget for this plan will include the marketing creation of literature which will be sent through regular mail to all current customers. This literature will also be provided online at the company’s website with additional links to associated bonuses and benefits and also the company’s Facebook targeting campaign through the page and through Facebook advertisements which allow for potential customers to click through and purchase a ticket. QR codes can also be generated for each verified customer who can receive their coupons through the code itself or pick up those 25%-10% coupons at the ticket counter, whichever is convenient for them. The pass for one night’s stay at the hotel can also be generated through the QR code or through a coupon picked up at the ticket counter. This implementation should begin immediately in terms of creating the literature for business development with other airlines to bring on-board at least one other airline by the start of operations with the new Airbus Hub. That would make three airlines in operation and any kinks could be ironed out easily before bringing on any other companies. As the Hub actually begins operations, the literature for customers to access should already be created and online for the first ticket purchases. The initial goal in stage I of the Marketing Plan is to gain one-third times as many customers flying the Emirates Airbus fleet as in 2013 as have done in the whole year of 2012. Marketing Budget and Time Frame for Stage I Hub Preliminary Marketing Budget Literature Development for Mailings ?20,000.00 Hard Copy Printing Costs ?10,000.00 Ad Creation for Journals/Industry Publications ?$5,000.00 Ad Placement Fees ?15,000.00 Website Development for Click-through Purchasing ?9,000.00 Social Media Development: Facebook and QR codes ?10,000.00 CRM Integration with all Points of Purchase ?15,000.00 Business Document Development (white papers, case studies) ?30.000.00 Business Videos (DVDs) ?20,000.00 Bibliography and References Aircraft Avionics. (2012) Aircraft Maintenance Engineering Vocational Programmes and Top-up Degrees. Emirates Online, Available at http://www.emiratesaviationcollege.com/engineering_amc.aspx Dubai Hub. (2012) Dubai to Become new International Hub for Qantas European Operations. Emirates Online, Available at http://www.emirates.com/english/about/news/news_detail.aspx?article=972231 Emirates Facebook. (2012) Emirates Airlines on Facebook. The Official Page, Available at http://www.facebook.com/#!/Emirates?fref=ts Emirates Global. (2012) Emirates Airline: Building a Global Network. The Emirates Story. Emirates Online, Available at http://www.emirates.com/us/english/about/the_emirates_story.aspx Environmental Report. (2011) The Emirates Group Environmental Report 2010-2011. Emirates Online, Available at http://content.emirates.com/us/english/images/The%20Emirates%20Group%20Environment%20Report_tcm272-701728.pdf#True Ferrell, O.C., Hartline, M.D., Lucas,Jr., G.H. & Luck, D. (1999) Marketing Strategy. Philadelphia: Dryden Press. Kennedy, D.S. (2006) The Ultimate Marketing Plan. 3rd ed. Avon, Massachusetts: Adams Business Press. Waugh, R. (2012/9/1) World’s biggest super-jumbos must be grounded, say engineers after cracks are found in the wings of three Airbus A380s. Mail Online News, Available at http://www.dailymail.co.uk/news/article-2084242/Airbus-A380-Worlds-biggest-planes-sky-worthy-say-engineers.html Read More