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Analyse the business situation facing KuIuIa.com from a marketing point of view - Essay Example

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Kululu.com has creatively exploited segmented market strategy and targeted market that were hitherto either not using airline or were less frequent fliers. Its low cost was comparable to bus and train ticket and therefore was able to attract new segment and establish a niche position in the domestic market…
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Analyse the business situation facing KuIuIa.com from a marketing point of view

Download file to see previous pages... Its advertising campaigns were designed to influence human psychology and impacts of its visual and textual content is linked to human behaviour. Thus, its advertisement that makes common man, a super hero was hugely appealing for local population. Though it has networked with car rental firms, it needs to create wider linkages with other facilities to ensure customers convenience. Kululu.com faces serious threat from new competitors, especially from SAA or South African Airways which has largest market share. As such, Kululu.com must adopt flexible strategies to meet new challenges and exploit internal capabilities vis-a-vis customer relationship, sustainable business practices, diversification, acquisition, new product development and its linkages with its parent companies to gain competitive advantage. Ansoff’s matric promotes four growth strategies for gaining competitive advantage: market penetration; market development; diversification; and new product development. It should therefore analyse different strategies of growth (Solomon et al., 2012). Both Comair and British Airways have huge credibility across the globe. With increasing competition, it must evolve new products and services and develop strategic business linkages with its parents’ company so that they can share database of customers with ease. Recommendations It should further enhance its customer services and develop an organizational culture that empowers employees. By increasing the number of customer service agents it would be able to provide passengers with improved personal service and emotional support and security at the time of crisis. It should increase frequency of destination-to-destination flights to maintain its popularity. Specialized short haul flights...
• It should increase frequency of destination-to-destination flights to maintain its popularity. Specialized short haul flights are increasingly being preferred by people who are frequent fliers. With its low cost strategy, it would attract more small and medium business class.
• As a growth strategy, leveraging partnership across different fields that may complement its wider business objectives is hugely critical issue that needs to be incorporated within its business strategy. Thus, it should forge alliances with hotels, resorts, tour operators and event managers so that it can constantly provide its customers with new ways to benefit and enjoy unique experience. Offering integrated packages would attract more families for vacations and encourage small and medium businesses to take its employees for work-cum relaxation programs.
• It should promote sustainable business practice and introduce attractive offers to its customers which would be able to give them a chance to travel in BA and Comair flights. It could be in terms of number of flights or frequency of fliers to particular destination which would make customers eligible for bonus points that could earn them discount tickets in BA and Comair. This would significantly increase customer database and help it to maintain its competitive advantage. ...Download file to see next pagesRead More
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