Integrated Marketing Communications - British Airways - Case Study Example

?Market analysis project British airway Introduction Marketing is an integral management function man d with the identification, anticipation and satisfaction of the customer requirements. In doing this, the organization increases its market share thus its profitability. Every business organization exists primarily to make profits. With an adequate profit, the organization becomes capable of managing its operations and possibly sustaining its growth. However, marketing is a daunting task that needs effective and timely information about the market (Homburg, Sabine & Harley, 2009). The organization must have an elaborate understanding of the market and thereby consider every market dynamic that may possible effects its productivity. Marketing in an organization therefore serves two main purposes: maintaining the current customers of the organization by delivering satisfaction and attracting new customers by promoting superior value to them. This way, the organization earns its relevance in a market thereby retaining its market share. British airways is the largest airline company in the United Kingdom. With more than two hundred international destinations, the airline is also one of the largest airline companies in Europe. This implies that the organization has a wider market, to have an effective access of the market; the company must employ effective marketing strategies. Since the 2009 financial year to the end of the 2011 financial year, the company has maintained an increase in its revenue a trend that portrays the effectiveness of the marketing strategies that the company employs in selling its products. Unlike other markets, the hospitality industry in which the company operates is precarious and therefore require timely strategies advised by an intricate understanding of the market. The hospitality industry is developing; it therefore attracts more investors resulting in more competition from the already established companies such as the British Airways. The research therefore seeks to investigate the marketing strategies that the company employs as well as to establish measures safeguarding its profitability for the past three years. Methodology In understanding the effectiveness of the marketing that the company employs, the research bases most of its findings on the primary data. This implies that it is a primary research. Such a research draws its conclusion from the data it collects from the primary sources. In this context, the primary source refers to the marketing officials of the organization who the researchers will investigate. However, the research does not limit its finding to the primary data but also relies on the secondary data to develop an understanding of the concepts under the investigation. Unlike primary data, secondary data are literature material written by previous scholars on the topic of the research. There are several books and journals among other forms of literature that discuss the structure of the airline mogul and the marketing strategies it employ. Through this, the researchers develop a primary understanding of the company, additionally, such sources aids the researcher product the outcomes of the study (Aaker & Aaker, 2010). The research uses several data collection methods; such include observation, the use of questionnaires and the use interviews. However, each of the methods has a disadvantage, which impairs its effectiveness, to help curb such; the researchers will therefore use all the three strategies thereby making them complement each other thereby earning the exhaustiveness required for the study. Interviews give the researchers an opportunity to ask follow up questions thereby allowing the researchers an opportunity to achieve as much as information as possible. Additionally, the method gives the researchers a chance to make detailed observations of their respondents thereby deriving some information from their body languages. However, the method inconveniences both the respondents and the researcher since it requires them to spend productive time. The respondent may therefore present a level of resentment for the entire process and therefore give irrelevant information. To curb such, the researchers employ the use of questionnaires, which are more convenient since the researcher mails them to the respondent thereby giving them an enabling opportunity to respond to the questions in their free time and mail them back to the researcher for analysis. Observation on the other hand is complimentary to any of the two methods. It involves the study of the operations of the organization through monitoring their media activity and the structure of their operations thereby comparing such with some of the competitors. Main findings British airways is indeed a major operator in the industry having a large of both the local and the international market. The company employs a number of marketing strategies most of which ensure the relative success the company has enjoyed in the last three years. Among its basic marketing strategies, include the following: Diversification; the company understands the market effectively. Following this, the company diversified its product to target every segment of the market thereby increasing its reach. The market consists of the rich who are a minority. This group has a specific requirement from their service providers (Pickton & Broderick, 2005). They attribute more importance to the luxury and convenience that the service provider offers. Following this understanding, the airline has developed a number of products that target the rich. Such product packages promise luxury and convenience as demanded by their customers. Such product packages include the executive or business classes, which target wealthy business people. From this market segment, the company earns profit by delivering value for money to their customers. However, this is a minority class in every society; the company therefore earns profit by charging higher prices for their services. The other segment of the market consists of the middle class, they are the majority but attaches more importance to their money. They resent expensive packages yet is a potential segment of the market. The airline has therefore developed service packages that befit their financial implications while delivering the service satisfaction they require. This way, the company safeguards its reputation among the different market segments. Besides the market diversification, the airline also practices diversification of production and service delivery. Currently, the airline runs a fleet of luxury taxis and car rental services in all its major international airports. In addition to such, the company collaborated with other international hospitality service providers such as hotels to offer their clients a holistic package depending on their requirements. This way, the airline makes profit through the different sources thereby staying relevant in the changing market. In doing this, the company through its marketing department ensures compliance with the dictates of the marketing mix. Marketing mix refers to the elements that an organization must consider in order to market a product effectively. Such include the fundamental four Ps. Price, Product, Place and Promotion. Price is the exchange value for the product and the service of the company. The price must always reflect the satisfaction that the clients obtains from the service or product. The company ensures this by ensuring quality services for its customers. Promotion on the other hand refers to the process of increasing awareness on the existence of the organization. The airline carries out an extensive media campaign through radio, television and the modern internet platform. Through such it maintains a contact with its market group. Additionally, the social networking sites such as Facebook and Twitter provide the company with effective platforms to carry out market research therefore maintain relevance to its market segments. Product is another integral element of the marketing mix, which in this context refers to the service packages that the airline company develops for its customers. Such reflect their diversification and promises the quality for money, a requirement to every client. Place refers to the ways through which the clients access the services and products. The airline has a global access of more than two hundred destinations and more than a hundred local destinations. This promises its clients' convenience of their destinations thereby increasing the reputation of the company. Additionally, the company carries out extensive social corporate investing through which it benefits the local community within which it operates. This way, the airline develops a positive reputation among the target market thereby soliciting their favor possibly placing the company’s product ahead of its competitors’ products (Lane, 2005). Conclusion Following the elaborate study of the company’s structure and marketing strategy most of which result in profitability for the organization, it becomes evident that the airline has an effective understanding of the market and therefore develops relevant products to them. Diversification is an essential form of marketing that the company has progressively used to earn the relevance it currently enjoys. As the market changes with time owing to the evolving technologies so do tastes and preferences. This therefore compels business organizations to diversify their production in order to earn the relevance that is fundamental in becoming successful. British airways through diversification continues to promise its clients increased convenience and the constant quality of service they desire. This way, the company safeguards both its profitability and longevity. Recommendations Despite the steady growth in the profit of the company in the last three years, its market share was either constant or grew by a minimal margin a feature that depicts poor or ineffective marketing strategies in lieu to winning new loyalties. An effective marketing strategy must always try to expand the market for an organization. Following these observations, it becomes essential to recommend the following: Expansion into newer markets. There are several international destinations that the airline does not ply especially in Africa and other parts of Asia. Expansion of destinations is a form of diversification, which will ensure that the company retains its relevance among its most loyal customers by preventing them from trying other service providers (Fournier, 1998). The company requires an increased publicity. Being the oldest airline in the country, it is ironical that some people should not know about it in the very country. This therefore compels extensive media campaigns through both the local and the international media. The company should employ cheaper yet more effective media such as the internet through the social networking platform and develop better and more continent means of transacting business (Parente, 2005). The operations of the company must reflect the changing technologies in order to assure its clients of both safety and convenience. Bibliography Aaker, D. A., & Aaker, D. A. 2010. Marketing research. Hoboken, NJ: John Wiley. Fournier, S. 1998. Consumers and their brands: Developing relationship theory in consumer research. New York: New York Times. Homburg, C. Sabine, K. & Harley, K. 2009. Marketing Management - A Contemporary Perspective (1st edition). John Wiley & Sons. New Jersey, U.S. Lane, M. 2005. Socially Responsible Investing: An Institutional Investor’s Guide, Euro money. London: Aspen. Parente, D. 2005. Advertising Campaign Strategy: A Guide to Marketing Communication Plans. South-Western College Publications. Boston, U.S. Pickton, D. & Broderick, A. 2005. Integrated Marketing Communications. (2nd Edition). London: FT Pearson Read More