Commercial Aircrafts for Airline Industry - Research Proposal Example

Sales Proposal by BCA to QAC School Affiliation 0 Introduction It could sound more of a cliché to that the primary objective of every business is to achieve and maintain profitability, but that is the precisely the reason businesses are started. For this objective to be realized, a business owner has to understand their needs failure to which profitability might remain just a written objective. Always the need a business owner has is catalyzed by the attitudes and buying decisions of the clients, meaning it is imperative to pay close attention to these needs. Sadly, the pressure business owners find themselves in could be detrimental to their businesses because it is not always easy to track the trends customers set. In this paper, the purpose is to present a sales proposal to one of the leading airline companies, Qatar airways on behalf of the Boeing Commercials. 2.0 Product information Boeing 787 Dream liner is one of the aircrafts that Boeing Commercials is fond of producing and one that has caused great excitement in the airline industry. Its development started in 2003, but it was not until 2009 that the first flight took off in an amazing way. The Boeing 787 Dream liner offers a host of comfort not just to the airline companies, but also to the clients. First, this plane is the first of its kind especially concerning fuel-efficiency. The previous version Boeing 767 consumed more fuel than this make, and this simply means that Qatar Airways will save money in terms of fuel efficiency. Earlier, it was asserted that no business is started without profitability being the target; profitability is only realized when the selling prices exceed the buying one. Thus, this plane will ensure Qatar Airways’ fuel expenses fall significantly, by 20% to be precise (Barratt & Dowd, 2014); this will translate to a higher profit margin. Composites materials have been used in the making of this plane in a bid to ensure that fuel efficiency becomes a reality besides providing the need noise reduction. Additionally, the plane is two-engine, and this means its speed is somewhat higher than both its competitors and predecessors. There is a 3-class setting in the plane, a windshield that is four-paneled among other features, which make the plane outstanding (Barratt & Dowd, 2014). In addition to all these, the plane is already operating in a number of other companies, and has full approval Federation Aviation Authorities (FAA). 3.0 Boeing Commercial Airlines (BCA) information Businesses thrive mainly because of the networking capability its owner has, and this calls for the right partnerships (Khalid, 2006). This would require that the other organizations business owners associate with have witnessed success themselves or have the assistance the business owner seeks. BCA is in the business of designing, assembling, marketing and subsequently selling airliners as well as offering maintenance and training on the same worldwide. These activities have enriched the BCA in a way that could only be described as tremendous. One key lesson that BCA has learnt and strives to apply it with every client is that profit is the product is exemplary service offered to the client. In other words, profit should only come at the expense of offering incomparable services to every client who visits the BCA. With fully understanding of this vital principle in business, BCA implements through a couple of ways including hiring the right staff. Currently, the firm has enlisted the professional expertise of some 83, 350 employees whose primary objective is to carry out respective duties with an aim of offering only the best services (Barratt & Dowd, 2014). Because of understanding the value of the customers, a section of these employees are solely employed to offer the much needed care the customers flocking the BCA want met. In addition, it has become apparent that times have changed where clients demand to be treated fairly and with respect even after purchasing a product. At BCA, this is clearly understood and practiced through the establishment of an after-purchase relationship. It is implemented by offering training and maintenance of the aircraft. As a result of this commitment, BCA has won confidence from some of the major players in the airline services industry. Etihad Airways, Japan Airways, India Air, All Nippon Airways and United Airlines to name but a few (Barratt & Dowd, 2014). Because of showing tenacity in pursuing the above values, BCA’s actions have resulted in increased profits each quarter and year. For instance, in the last quarter of the year 2014, BCA sold 195 a number which is 13 more airplanes from the previous quarter’s 172. In terms of profitability, BCA reported a pre-tax revenue of $89.5 billion for the year 2014, and this will have exceeded the 2013’s which stood at $86.6 billion. The earnings per-share has increased from the one in 2013, $7.07 to $8.3. Also, it has been projected that BCA will hit the 755 mark in the sale of commercial jets this year, which will be an increase from last year’s 723 (New York Times, 2015; Forbes, 2015). With these resources, BCA is always able to deliver the Dream-liners in the shortest time possible because of the utilization. Whenever an order is received, BCA normally hires between 850 and 1200 personnel whose expertise is crucial in the assembling of the plane. Secondly, because of understanding the power of diversity, BCA hires personnel from a number of countries including France, Japan, China and other parts of Asia and Europe (Barratt & Dowd, 2014). This approach results in the assembling of the plane taking a very short time meaning Qatar Airways will not have to worry about the delivery date. The process backs up these assertions in 2010 whereby the company adopted a different approach in the assembly of the plane resulting in the completion period reducing by at least one week. Therefore, BCA understands the importance of delivering goods on time, and uses the strengths to meet this need thus confirming earlier statement of commitment. 4.0 Customer information Qatar Airways Company (QAC) is a Qatar- based government-owned entity specializing in the airlines, and currently serves in a number of countries. Having been initiated in 1993, the company started operations the following year, and just like any other business had some struggles finding a footing. Back then, the company had only two Airbus 310 planes, which only served in the areas of Dubai, Abu Dhabi, Osaka, Kuwait, Cairo, Bangkok and other few areas (Wang, 2012). However, the company has since grown into a renowned firm who reputation is above board. Recently, the company extended its services to many European, Asian, African and American regions meaning there is a demand for these markets. QAC, like other companies, is conscious of the need for low cost of production as evidenced by the 2009 event. During this event, the Qatar-based company used a mixture of synthetic gas and kerosene as an alternative to fuel on its London flight. Surprisingly, there were no complaints on this trial, and the company cited the ever-fluctuating fuel prices as its reason for the experiment (Barratt & Dowd, 2014). It is apparent QAC would like a service that reduces its operating cost; hence, the Boeing 787 Dream liner would offer this remedy. At the moment, QAC has over 145 points worldwide, but plans to have more points are underway meaning the demand for more planes will inevitably increase. Also, the company has only 18 Boeing 787 Dreamliner, and with the demand for its services increasing rapidly as Rapoza (2015) noted, there is need to avail more to the company. The services offered by the company go beyond ordinary, and this cemented by the recent rankings by the Skytrax. In the awards, QAC was ranked second out of one hundred other players (Rapoza, 2014). Clearly, this renders any dispute on the company’s quality of service as invalid considering that the ratings are a result of satisfied customers. Moreover, the company’s financial outlook is friendly meaning doing business with it will be beneficial to all parties. It was announced that the company, “achieved a revenue target of over $10bn in 2013” (Menon, 2014). Besides increased revenue, the company’s market-share has continued to expand meaning this company is a good client to work with both now and in the future. Over 21,000 employees serve at QAC where 19000 of them are direct employees, and this workforce implies a profitable firm (Rapoza, 2014). 5.0 Qatar Airways needs It was earlier indicated that customers have needs, which they hope businesses can meet them in a satisfying manner. One of such needs is comfort, in this case, in the planes and Boeing 787 Dream liner offers this comfort in a number of ways. First, the materials used in the production of the plane significantly reduce the noise emanating from its many parts. Convenience is an imperative to every customer, and as Khalid (2006) asserted, many would rather spend more to get it than not. One of the ways convenience is achieved is through prompt services. Boeing 787 Dream liner will offer this convenient in the sense that its passenger capacity is different from other models. Currently, this plane accommodates between 250 and 290 passengers unlike the Airbus 380 and Boeing 747, which have 555 and 450 as the respective capacities respectively (Barratt & Dowd, 2014). This means the plane fills rather faster than the rest, and this guarantees some conveniences. While convenience is a necessity to many customers, the assurance of the product or service they are getting is even more essential. Assurance in this case implies security where the passengers boarding Boeing 787 Dream liner would want to be assured of the plane’s security. Besides the issues that come with the testing of every machine, this plane not been flagged for any accidents. In fact, Boeing Commercials Ltd receives orders from various companies as the figure below shows. Clearly, this means that the company’s product are internationally recognized, and this would not be the case had security and safety related issues been raised. Figure 1.1  Orders  Deliveries Source: (Little, 2015). Comfort in the Dreamliner will not be limited to the precious and meticulous materials used on the seats; humidity will be the additional benefit. This model of plane has been designed in a way that the humidity is enabled through the pressurizing of the cabin. The legroom in this plane is simply amazing, and is one of the needs customers so much look for (Barratt & Dowd, 2014). In fact, Rapoza (2014) noted that one of the reasons the passengers rated Qatar Airways highly was because of having planes that offered this much-needed leg space. Fortunately, the Boeing 787 Dream liner comes with even a bigger space, and clearly, this will impress and satisfy every QAC customer. Again, the plane’s materials, for instance the fuselage materials, enable it to minimize the nitrogen dioxide emission, and this confirms that passengers will not have to endure the smell that accompanies other planes. Though earlier it was noted the planes are not as noisy as others are, it is worth noting there is not just noisy-reduction; a 60% reduction is the precise change (Barratt & Dowd, 2014). Evidently, clients have longed these benefits for a long time without much success. However, this plane will deliver for the QAC clients which will undoubtedly, translate into an increased profitability in the latter’s part. 6.0 Cost BCA appreciates that one of the major needs a client has is accessing quality products at an affordable price. In line with that consideration, BCA has a variety of 787 Dreamliner’s to choose from including the 787-8 which goes for $218 million, 787-9 costing $257 million and another 787-10 whose cost stands at $297 million (Forbes, 2015). While there seems to be a disparity in pricing the same cannot be said when it comes to offering the services mentioned above. Upon purchase of these planes, QAC will enjoy more benefits from BCA including after-sale services, which in this case will be discounted maintenance fees, and annual trainings offer at half-price. The following table will highlight a more comprehensive report on all costs for this proposal. Table 1.1 Particulars Cost (in Millions) Quantity Total Remarks Dreamliner 787-8 US$218 Dreamliner 787-9 US$257 Dreamliner 787-10 US$297 Minimal maintenance $100 Medium $300 Major maintenance Depends Servicing Depends Source (Author) 7.0 The sales support package BCA will be offering the QAC consultation even in cases of emergencies without a charge depending on the complications. To ensure the relationship between the two parties remain cordial, BCA will provide all the information needed about the planes without any error or delay. In addition, anytime the plane requires repair, the BCA’s engineer and other relevant personnel will be dispatched to the required regions promptly in order to offer the needed assistance. The cost of repair will be dependent on the problem, and the materials needed. Further to these benefits, QAC will enjoy more when purchases are in large quantity, whereby the price-per-unit will be lowered. When the wheels are in need of repair or change, the BCA will be here to offer this solution, if at all the client QAC deems it fit. The cost for such repairs will vary as per the complications, but if it is just the wheels requiring the repairs, the price will range between $100 and $500. The more complicated an issue the higher repair costs are likely to be, but it suffices to say QAC will always receive a discount. Finally, these Dreamliners will come equipped with all the seats, leather upholstery, and spare parts for the wheels at no extra cost. 8.0 Sales team details The delivery of these planes will be made once the client makes a request for the same, and after fulfilling the conditions leading to the orders. After that, BCA will task relevant individuals and departments to ensure that the delivery takes place as per the schedule. Upon receipt of the products, the QAC management will confirm their condition, after which they will relay the information to the BCA management. To ensure there is smooth delivery of these planes, BCA has attached the following information detailing the names, positions and the respective of the individuals tasked with the delivery. Table 1.2 Name Position Duty Jeffrey Ings Senior Engineer overseeing the testing process James Havez Pilot Flying the plane Isabelle Headley Co-pilot Assisting the pilot Josephine Irye Hostess Ensuring order in the plane at the testing time Keith Douglas Sales manager Overseeing the sales process Source: (Author) (names are fictional) 9.0 Conclusion BCA has been confirmed as one of the most reputable companies dealing with the designing and marketing airlines. As evidenced by the information provided in this paper, BCA is a reliable company with a capacity to deliver the proposed plane at any time requested. With such a vast, highly experienced and diversified team of professionals, delivering these services will be done in an outstanding version. Almost every company in the airline business has placed an order with BCA, and this signifies reliance and commitment on the latter’s part. With the revenues increasing each year, it is almost impossible for BCA to offer any other services except the up-to-standard. The prices mentioned in the paper are not comparable to the competitors’ who seem to hike theirs so often. Because of understanding the importance of a long-term relationship, BCA seeks treat customers in a way that will compel them to return. Thus, after-sale services will be offered to QAC including maintenance and training of other staff. Besides, constant communication between the two parties will be maintained in a bid to solidify the new relationship. References Barratt, J., & Dowd, K. (2014). A New Airplane for a New World: The Boeing 787 Dreamliner. Design Management Review, 19(5), 26-33. Forbes (2014). Boeing: Commercial Airplane Deliveries Should Lift Sales Despite Weak U.S. Military Spending. Forbes. Retrieved 30 April 2015, from http://www.forbes.com/sites/greatspeculations/2015/01/27/boeing-commercial-airplane-deliveries-should-lift-sales-despite-weak-u-s-military-spending/ Khalid, H. (2006). Customer Emotional Needs in Product Design. Concurrent Engineering, 14(3), 197-206. Little, B. (2012). Identifying key trends in sales – from a training perspective. Industrial And Commercial Training, 44(2), 103-4 Menon, P. (2014). Qatar Airways a fully government-owned entity now. Gulf-Times. Retrieved 30 April 2015, from http://www.gulf-times.com/qatar/178/details/391049/qatar-airways--a-fully-government-owned-entity-now New York Times (2015). Boeing Profit Up 20% on Commercial Airplane Sales. New York Times. Retrieved 30 April 2015, from http://www.nytimes.com/aponline/2015/01/28/business/ap-us-earns-boeing.html?_r=0 Rapoza, K. (2014). Why UAE And Qatar Have The Worlds Best Airlines. Forbes. Retrieved 30 April 2015, from http://www.forbes.com/sites/kenrapoza/2014/04/01/why-uae-and-qatar-have-the-worlds-best-airlines/ Wang, X. (2012). Combating negative blog posts and a negative incident: A case study of the “Mayday” incident between Juneyao Airlines and Qatar Airways. Public Relations Review, 38(5), 792-795. Read More