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Marketing Audit and Marketing Plan for Emirate Airlines

Marketing Audit and Marketing Plan for Emirate Airlines (GC0339)

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Executive Summary

As the airline industry is in the mature stage, it is growth is slower than other industries across the world. Thus, the airline industry is facing great challenges in gaining a sustainable competitive advantage. In a similar way, Emirate is facing a number of challenges in the current marketplace, where the key challenges are high pressure from aggressive competitors, high operational costs because of huge investment and increase fuel prices, poor growth in the international market including Canada, poor technology used in customer services, low-cost prices from competitors.

The finding of this report recommends Emirate providing three particular suggestions to overcome the challenges it faces. Firstly, it is recommended to expand its routes and destinations in global marketing including Canada. Secondly, it is suggested to introduce more advanced technology in improving its customer’s services. Thirdly, it is recommended to introduce low-cost airlines to beat their competitors.

Table of Contents

1.0 Introduction.

2.0 Strategic marketing plan.

3.1 Summary of a marketing audit

3.2 Key marketing issues that Emirate faces.

3.2.1. Poor growth in global marketplaces.

3.2.2 Poor technology used in customer services and customer engagement

3.2.3 Emirate’s competition is getting bigger and bigger

3.2.4 High operational costs in Emirate Airlines.

3.2.5 Emirate faces the threat of low-cost airlines.

3.3 Marketing Objectives.

3.3.1 Marketing objectives for Emirate 2016.

3.4 Segmentation, targeting, and positioning.

3.4.1 Segmentation.

3.4.2  Targeting.

3.4.3 Positioning.

3.5 Marketing mix recommendations (implementation)

3.5.1 Place.

3.5.2 Price.

3.5.3 Process.

3.6 Controls and measurements.

3.6.1 Evaluation and Control plan for Emirate Airlines  – 2016.

3.6.2  Marketing Contingency Ideas for Emirate Airlines -2016.

References.

1.0 Introduction

The airline industry has been growing up rapidly across the world. The success of this industry is linked to the economic situation. Thus, this industry is well-known for competitions based on pricing strategies. This report undertakes a marketing audit and marketing plan for Emirate Airlines. The first section conducts a marketing audit including both internal and external business organizations of the Emirate Airlines industry. The aim of this section is to critically evaluate Emirate Airlines’s competitive edge and effectiveness over its competitors. The second section of this report conducts a marketing plan for Emirate. This section evaluates the marketing strategies of this Emirate Airlines with its position in the competitive market.

2.0 Strategic marketing plan

3.1Summary of a marketing audit

Analysis of the external environment on Emirate Airlines discloses that the global airline industry is in the maturity stage. There is very slow growth in this industry which has resulted in a severe completion level. Porter’s Five Forces analysis shows only three forces have a direct impact on Emirate’s performance, which are the intensity of rivalry, customer bargaining power, and supplier bargaining power. On the other hand, the barrier of new entrants is very high in the global airline industry which has been an opportunity for Emirate Airlines. PESTLE Analysis shows that technological, social, and economic factors affect the business of Emirate by either decreasing or increasing passengers’ traffics. Critical success factors analysis of Emirate discloses that Emirate uses a number of key factors to maximize its success to gain a good position and improve loyal customer level. Through these critical success factors Emirate has also been able to differentiate its services, implement advanced technologies, gain a strong brand image, and join alliances.

Along with the external environment, the airline industry has to specify its internal factors, which are known as strengths, weaknesses, opportunities, as well as threats. Recognizing these internal factors enable the airline industry to improve the strengths, take the opportunities, overcome weaknesses, and avoid threats.  The emirate has several strengths including responses to new and advanced technologies (such as self-check-in services and e-ticketing) and differentiating from other airlines. A key weakness of Emirate is the high prices because of a big amount of investment in aircraft. Although Emirate Airlines has huge opportunities (such as increasing its operation in the international market), it faces many threats including low-cost competitors, fluctuation of fuel prices, and the spread of severe diseases.

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3.2 Key marketing issues that Emirate faces

3.2.1. Poor growth in global marketplaces

The emirate has poor growth in international areas. Still now Emirate does not have routes in many attractive regions of the world including Canada. Thus, maximizing routes may be profitable for Emirate, particularly in the growing tourism areas. Therefore, Emirate should increase its routes worldwide mainly in attractive areas. In this case, joining an international alliance may help Emirate for increasing its routes and destinations, which may also offer several fare options for passengers supporting to reduce threats from new low-cost airlines.

3.2.2 Poor technology used in customer services and customer engagement

There is a lack of advanced technologies used in Emirate customer services. In spite of the increasing trend in online users, Emirate has not focused on the E-CRM (Electronic Customer Service Management) strategy which is being used by many of its competitors. In this case, many of the competitors are signing a contract with e-business organizations that offer airline technology solutions (Jiang, 2015).

3.2.3 Emirate’s competition is getting bigger and bigger

The global airline industry is in the maturity stage. Thus, there is very slow growth in this industry which has resulted in a severe completion level. Therefore, the defensive strategies used by Emirate are not able to give success in the current competitive market. In this case, the use of offensive strategies has been essential along with business environment analysis to improve Emirate’s performance.

3.2.4 High operational costs in Emirate Airlines

Emirate Airlines faces high operational costs because of big investment in aircraft and cost increase in services and fuel prices. Thus, it has been essential for Emirate to reduce its operational costs by improving flight scheduling and maintenance of processes and maintaining effective aircraft usages. The adaption of advanced technologies in distribution channels can be effective to overcome these challenges. This is because technology usages (such as self-service kiosks in airports) can reduce labor costs significantly, where Emirate has already installed one in Dubai International Airport.

3.2.5 Emirate face threat of low-cost airlines

The emirate has been facing the strong threat of low-cost airlines. This is because many new low-cost airlines are offering low-cost services to economic passengers. Thus, Emirate must offer a new low-cost brand to serve economic passengers and improve the market share. On the other hand, it will not be wise for Emirate to lower its prices for its advanced services.

3.3 Marketing Objectives

Marketing objectives refer to measurable goals. The business mission and vision are turned into successful outcomes meeting the business objectives. Marketing objectives can be classified into two groups: traditional marketing objectives, and e-marketing objectives. Thus, every business must determine its marketing objectives (Palmer, 2014)…..

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