Services Offered by Emirates Airline - Case Study Example

Executive summary This report is based on an analysis of services offered by Emirates Airline which are all aimed at realizing customer satisfaction and also enhancing competitive advantage of the entire organization. Since it is a service provider, there are high chances that customer experience can make a company gain or even lose in the market. This being the case, Emirates Airline has put into place many strategies to ensure that their customers are well treated and customer loyalty is created so as to increase on the market segment as they also lock in the existing customers. The management of Emirates Airline, have implemented many procedures which are aimed at ensuring that customer are satisfied, from their price, the innovation in their ground and in-flight services, their customer service, the way they make known their product to the customers and many other strategies. It is a matter of fact that, this company has successfully achieved much in the airline market due to their initiatives in focusing on customer experience and satisfaction. Table of Contents Introduction 3 Objectives 3 Brief Background 3 Analysis 4 Description of the mainly target market 4 Product 4 People 5 Physical evidences 6 Process 7 Place 8 Positioning 9 Price 10 Promotion 11 Recommendations 12 Price 12 Physical Evidence 12 People 13 Product 14 Conclusion 14 References 15 Introduction Objectives This report uses Emirate Airline as it expounds more on the service analysis suing the 7Ps to emphasize on the same. These 7Ps are positioning, price, place, promotion, people, process and physical environment which surround the air travel service which are provided by this airline. Brief Background Emirates Airline was founded in 1985 by the government of Dubai. It started its flights to Mumbai and Karachi and this has continually expanded tremendously. Today, the industry is considered to be a subsidiary of the Emirates Groups which headquarters are in Dubai, united Arabs Emirates. In 2007, it was noted to be the eight largest airlines in the global market in terms of international passengers and fifth in terms of international passenger kilometers flown. It is also operates in the entire wide body aircraft feel and this happens to be with only five other airlines in the whole world (Knorr & Eisenkopf 2008). Today, this airline is considered the most influential and essential in the airline industry and has continuously gained competitive positions and advantage in the market pace. Even when there were economic hard times, Emirates defies all this and recorded an increase of 74% profit which is an attributed to the fact that, leaders have been working hard towards making Dubai as a modern hub of tourism (Emirates 2010). This airline started with a fleet of two borrowed aircraft. However, today it operates the world largest A380 and B777 fleets and has become Boeing’s and Airbus’ single mort important customer. The success of this company is attributed to the fact that, they have taken a non traditional management approach, other than just relying on the industrial conventional wisdom. It is run like a family with an informal and entrepreneurial spirit (Knorr & Eisenkopf 2008). The company has very many initiatives which are directed towards ensuring that customers are treated like kings. Analysis Description of the mainly target market Emirates Airline is a major airline which provides all air transport services ranging from cargo, passengers, airmail, courier and fast freight. The main aim for the company is to be the leading service provider targeting people from all walks of life (Emirates 2010). By this I mean that they target both local and international passengers who are either in business of are out for work missions, local business people, international business people who are out to do business and have cargo to be transported and tourists both domestic and international. Their services are well blended with all generations therefore they accommodate everybody (Dana 2000). Their services are world class where by even though they offer cheap fares, the quality is never compromised. In the recent past, Emirates Airline has targeted families who wish to fly with their children by offering the ‘Kids Fly Free’ initiative and giving kids lots of goodies in the flight (Knorr & Eisenkopf 2008). This has been successful target segmentation for many people opting to travel with their kids have been left with only one option, Emirates Airline. Product Since its inception in 1985 Emirates has grown to provide a wide range of products to its customers. It started with two leased aircrafts at inception as a passenger carrier operating mainly in Asia and Middle East. Today Emirates operates over 2300 flights every week and has a network of over 122 destinations worldwide with several destinations being added each year. In the cabin services section, there are three categories of first class seating, full suite with doors, a flat bed and a sleeper seats. The full suite includes doors for privacy, a storage area and an ICE system with 23inch screen. They are available in A380-800, A340-500 and Boeing 777-200LRs aircraft. The flat bed is available on the remaining 12 Boeing 777-300ERs, Boeing 777-200s. In Boeing 777-300s, a flatbed is by integrated seat control. Sleeper seating is available in A330-200 and A340 aircraft. There are additional features for this class in the new Airbus aircrafts. In the business class on Boeing 777-200LRs, Boeing 777-300s are ammenit6ies such as massage function, individual reading light, power supply outlets, and USB ports; over 600 entertainment channels and TV screen (17inches).The economy class offers a standard seat width with a seat pitch of 31-32 inches. There are power outlets, ICE in-flight entertainment with 600-1000 channels. Emirates have been rated by Skytrax as the best entertainment airline with its ICE system. It was among the leaders in in-flight use of internet, use of high speed cameras at landing and take- off and use of mobile phones in flight. Emirates have adopted mobile phone technology in many areas such as booking for flights, checking updates and receiving notifications (Lock,Fattah&Kirby 2010). The airline has expanded its cargo section with carrier to compete actively. It has recently expanded to the hospitality industry and it now has links to the major tourist destinations across the world. People These are the people involved service delivery. (continuun 2006)Emirates airline appreciates the diversity of culture in its operations. To satisfy its diversified customer base across the globe, it has employed a strong work force with representation in every continent. This is well blended with the Arabic culture embedded in the staff code of dressing, the aircrafts décor. This brands the airline as unique. Emirates is always to committed to provision of highly professional services by its staff and has invested in training facilities for its staff where it engages them on continuous training to meet market demands (Cannegieter 2006).To build on their interpersonal relations the company conducts seminars to enhance effective teamwork. Recently, it installed a cabin crew training facility and the use of simulators for all aircraft types was launched. This has resulted in high labor productivity. In a study by UBS, the unit costs compared to KLM were lower by 40 percent giving cost advantage to the airline (Knorr and Eisenkopf 2008). Continuous motivation to the employees ensures superior customer service. Emirates Airline provides the staff with comprehensive health plans and sickness and maternity leaves are paid for as part of motivation (Price & Brodie 2001). As part of their competence based reward program to manage performance, the airline uses profit sharing and bonus payment on merit. As a result there is high staff retention and the airline benefits in the long run as it minimize the losses involved in continuous employee migration. Employees in Emirates Airline undergo extensive training programs to ensure high quality service and customer satisfaction (Eric & Laws 2005) Physical evidences This is the physical setting in which the customer meets the product together with the facilities that enable the presentation and communication of the product or service. This setting influences the customer’s attitude and perception towards the products and services in offer. Ever since its inception in 1985 Emirates has sought to be unique and as a result has provided products and services which cut across the social and economic divide. Since it is based in Dubai which is in itself a multicultural environment, it has taken the advantage of this diversity to scale the heights of success. Very high quality services in all classes have contributed greatly to the rise of the airline which include 600 entertainment channels in the all classes and limousine for drop off and pick op of passengers in first and business classes. (Knorr & Eisenkopf 2008). Emirates have invested a lot of resources to ensure customer satisfaction by recently reorganizing the Customer Affairs and Service Audit (CASA). This is by decentralizing customer service in major destinations adding to existing network of regional offices. This has resulted in a 50 percent improvement in complaint handling and a 66 percent reduction in claim processing time, (Emirates 2010). The diversity in principle is reflected in the diversity of her staff that not only work as a team but also are highly trained to display professionalism in every aspect (Andrew & Stephen 2000). Emirates boast of a huge diversity in the products and services ranging from passenger flights, cargo section, tour and travel and hospitality. Lately, the airline has used technology to take products and services a notch higher by introducing multi-currency booking on a new internet engine which sends notifications via mobile phone. Process The process is the strategy the company employs to ensure the staff is focused on customer satisfaction. Emirates has learnt and employed the art of unique presentation of products to ensure acceptance world over (Mahn 2001). One of its strengths is its ability to appreciate diversity and blend that with a bit of culture. This has given it enough strength in its home continent in Asia and at the same time attracts so many worlds over who love its branding techniques. That way it became one of the fastest growing airlines in the world. Emirates has invested well in training of is crew and motivating them to give the best services. (Cannegieter 2006). It continuously updates them through training ensuring they remain competent and updated in the face of changing market trends. The airline unlike its competitors has been quick to adapt to consumer needs resulting in high customer approval. This is evident with the decentralization of customer care services in major destinations around the world. (Emirates 2010). Emirates have managed to cooperate with other airlines and partners to strive for better services for its customers. This way it made major strides in acquisition of cutting edge technology. The recent stride is the new internet engine that is accessible by their customers through their mobile phones. (Lock,Fattah&Kirby 2010). Emirates have grown to diversify in to hospitality industry. It has embarked actively on a process of being a leader in this area by motivating staff to provide a quality service which has seen the airline have tremendous growth. The management is able to communicate the overall strategy of the company to the employees ensuring the short and long term objectives are met (Writz, Heracleous & Pangarkar 2008). Finally, there is a state of art lounges at major airports, efficient check in services, personal screens for entertainment on every seat and well equipped aircrafts. Place This is defines availability of products and services to the client (Hunt 2004). Emirates airline is based in Dubai. In the recent years the city of Dubai has grown to be an important city in Asia turning out to be a major destination for business and tourism. This tremendous growth has worked in favor of Emirates elevating so fast to connect Dubai with other major cities of the world. With its base in Dubai International airport it is able to access resources in the expansive airport area. It has received support from the government spurring its growth leading to sparking controversy with other airlines. Emirates have always exposed their products well to the customers through aggressive and unique marketing strategies. This has resulted in evident growth of the airline to major destinations. To come closer to its clients it has offices in all destinations. Recently, it decentralized its customer centers to increase customer responsiveness. (Knorr & Eisenkopf 2008). Emirates have invested heavily in technology to improve accessibility of its products. To maintain healthy relationship with clients it is using mobile technology on a recently developed engine. Customers can get updates and notifications via mobile phone. The airline has expanded extensively in many areas including cargo and travel. This way it has a bigger foot print in global business. It has increased its cargo carrier fleet significantly and investing heavily in technology by building a fully automated cargo handling section which will see it entrenched in the global airspace (Emirates, 2010). In addition, it operates a number of five star hotels in major tourist destinations further making contacts with more clients. Emirates products are promoted through the internet additionally, the sue mass media for communication and campaigns, Positioning Emirates Airline is one of the leading companies in the Middle East. With the recognition of opportunities in the market, the company has tirelessly worked towards becoming a customer choice brand. The airline stretches in approximately 100 destinations and 60 countries globally and therefore it can be referred to as a global leader. Its positioning takes in to consideration the price, quality, comfort and demand aspects into consideration. This they have achieved despite the competition felt from Virgin Blue and Qantas Airways based in Australia where Emirates also operates. Additionally, their services cannot be compared with any other in the market. They provide their aircraft with the latest technology such as wide seats, e-ticketing and this distinguishes the company among other companies like Qantas Airways. This in other words means that, Emirates Airline creates customer loyalty and strong brand name by implementing new technologies in its services so that it can substantially be positioned as a pioneer in the airline field Emirates Airline has also gained competitive advantage for it focuses on new segments in the market. For instance is provides other airline companies with training courses by the use of modern machines, like the machine simulators and this makes it the only company in the Middle East to offer such services (Rhoades & Waguespack 2005). This ensures that their brand name awareness increases in many segments as well as an increase in the market segment. Conclusively, it is a point worth noting that, Emirates Airline has adequately positioned itself in the market, where by it is a travel option for many customers due to their service and customer service. Price Emirates Airline understands that, price is a key determinant in the airline business and must correlate with the value perceived by the customers. Additionally, many people will opt for those services which are cost sensitive but with uncompromised quality of the service and this Emirates Airline have tried to adhere to so as to meet the market target. Due to the heightened competition in this market, Emirates Airline have decided to offer the best prices and it has been recorded that, it offers the lowest prices at all times from Glasgow for all times. For instance flying with Emirates from Manchester will only cost £667 to Sydney which is less than £100 as compared to other airlines. Irrespective of the challenge experienced from price wars especially from Qantas, who state that Emirates positions itself as the Scottish friendly carrier, managed to offer significantly low fares, as low s £826, a price that many airlines have found it hard to copy. Additionally, the ‘Kids Fly Free’ promotion has made it be a cost effective option to fly with Emirates Airline. Many people with families opt to use the company for they offer a free flyer for kids. This means that, when one uses another service, they will have to pay for their kids which are not the case with Emirates Airline. This therefore means that, when using their services, you will pay less amount of money than one will pay when using other services. Additionally due to well arranged local feeder networks in any region and convenient schedules, travelling with Emirates proves to be cost effective. Promotion Emirates have employed quite a number of promotional activities, so as they can make known their brand presence in many regions. This includes the use of the mass media, outdoor posters and sponsoring of sports events. All this is done to encourage people to use the airline as well as they raise awareness of their products in the entire world. For some time now, they have used internet in their advertisements and communications and in 2008, they wee named the overall top ten digital banners of 2008, on the internet and campaign magazine. They also organize road shows like the one held in China and they have continued to innovate in their promotion of new routes to the travel trade, media and public. They also utilize promotional materials like trade incentives and branded items like books, diaries, pens, calendar and many other items. Recommendations Price There is a vital need for Emirates Airline to understand that, price reduction is vital as a long term necessity when demand is uncertain. Price differentiation need to be particularly emphasized in Emirates Airline, for larger market shares, as customers become more prices sensitive. In the market, there has been the growth of low cost airlines and therefore there is a need to compete on low cost flights considering that they have competitive advantage from experience curve and economies of scale throughout its development cycle. This being the case, Emirates Airline needs to implement forms of ensuring customer loyalty and discount programs as incentives, to ensure that their prices remain low so as to have a competitive advantage. In the current market, there are no companies which offer discounted fares. In actual facts the only price wars are as a result of low prices. However, if only Emirates Airline give discounted fares to those customers who frequently travel with them, then they will ensure customer loyalty as well as increase their market share, and this will ensure that they remain competitive and their revenue increase (Turney, Bishop & Fitzgerald 2004). Physical Evidence Where services are purchases and where the services are consumed are two important aspects in any service provision company (Möller 2006). It is worth noting that, there are many factors that affect the emotions of a client like the lighting, noise level and the furniture. This being the case, there is a need for Emirates Airline to consider this as they are looking forward to having satisfied customers. Emirates Airline need to improve on providing their customers with outstanding travel experiences from booking through the ground to in-flight elements. Their seats need to be designed for maximum comfort, use the latest in-flight entertainment systems and fine dining and impeccable services, if they have to remain competitive and achieve their goal of satisfied customers (Wyld, Jones & Totten 2005). Their lounges need to be well furnished and arranged with a state of art sofas to ensure that those visiting them long for another experience with the company. Lighting is of great importance and this should be considered in many of their offices and areas where most customers visit. People Emirates Airline services involved interactions between staff and customers. This therefore means that, the success of the company depends on its workforce (Jackson & Sirianni 2009) It is of great importance therefore for any company to invest in the improvement and satisfaction of its employees so as to realize motivated employees who in the long run translate to satisfied customers (Melewar & Saunders 2000). Additionally, when employees are satisfied, there are high chances that they will be reluctant to leave the company and look for employment somewhere else. Employee retention means that, Emirates Airline will not incur any extra costs in hiring and training new employees and they will continue with the up to date customer care they have, which have been valued by many customers (Suzuki 2004). This concludes that, Emirates need to invest on initiatives that will ensure employee retention and satisfaction like giving them rewards, medial covers, paid sick leaves and the like. Employees are the driving force of any company and therefore they should be motivated and satisfied all through (Bradley & Sparks 2000). Product Emirates Airline need to build products that will ensure that customer’s experiences that lead to string and trusted fellowship are culminated. In this era, economic uncertainty is inevitable. Emirate Airline therefore needs to have products which give the perceived value to the customers (Goi 2005). In other words, they must give the most quality products at the most affordable prices. For example, they may think of upgrading their in-flight services in all class by mu be providing sleep support kits which will be as incentives to their customers at no extra costs. Additionally, they should work towards increasing the stretching space between the sits in the economy class to increase customer’s comfort ability while travelling. Investing in the modern and dynamic technology will also be of great importance in upgrading the products in Emirates Airline (Garrow, Jones & Parker 2006). For instance, having enable internet connection in the aircraft will be a favor to the customer. Conclusion Emirates Airline is a renowned airline in the whole world. This is attributed to the fact that, they offer some of the world class services, which are aimed at ensuring that all the customers are satisfied and the get the value for their money. The cost of their services is affordable and the number of incentives has made this airline an option to many customers. Due to the increase of airline service providers, there is a need for Emirates Airline to improve on their services if at all they have to maintain their competitive advantage. Customer experience in Emirates Airline has been emphasized in their customer care, services offered, price, quality and customer staff interactions in the entire company set up. 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