Marketing Revolutionary Air Travel - Case Study Example

Air travel services continue to be a burgeoning market, with the growth rate very closely tied to the world economy and demand showing high-income elasticity (Shaw, 2007). Because there are fears that the US might go into recession, compelling buyers to be more conservative and selective in their purchase, Boeing 007 Heli-jet will be available for outright purchase but also through lease or rental agreement.Distribution ChannelsThe distribution must be supported by face-to-face sales by a highly qualified sales force.

First Class travels of UHNWIs are booked through travel agencies. These channel intermediaries can be offered a good trade commission in exchange for a referral or booking.The Heli-jet can also be co-marketed through alliances with First Class airlines, as the ultimate personalized service.Promotion MixMore executives now use video conferencing and conference calls as an alternative to actual travel. The importance of face-to-face contact in high-profile deals will be highlighted. The environmental benefits of the Heli-jet were also be emphasized.

Personal selling is an indispensable tactic, perhaps, through demonstration or sampling - for example, they can take a free flight on the Heli-jet on their next trip. This market segment is characterized by a complex buying process; therefore, the product will also be marketed to those involved in the purchase decision - such as executives in the Corporate Travel, Finance, or Purchasing department in the UHNWI's company - as well as to travel agencies.Full-page advertisements will be placed in publications like Forbes magazine, as well as in the online edition.

Public relations activities will also be undertaken.Budget PlanItemCost (in US$)Alliance marketingUS$200,000.00Sales staff - salaries, commissions, bonuses50,000.00Sales staff - training10,000.00Sampling/demonstration (4 flights/month x 12 months)48,000.00Referral commissions50,000.00Ad design and copy1,000.00Advertisement - Forbes Magazine (full page, open)107,520.00Advertisement - Forbes.com (CPM rate x 12 months)2,160.00Public relations20,000.00Total Estimated ExpensesUS$488,680.00