Companies with unique marketing policies understand the behaviour of the market and its customers and are able to produce products and services that can fulfil the needs of the customers. Effective marketing policy includes distribution promotion pricing and reaching to the potential customers with uniqueness of the product and services. In today’s world, no business organisation would be able to survive or sustain in the market without proper planning of effective marketing. Development growth and economic triumph of an entity depends largely on effective marketing (Armstrong, Adam, Denize and Kotler 2014).
In this study effective marketing strategy of the three big International American carriers named Delta airlines American airlines and United Airlines will be discussed. These are line Agencies have earned a huge reputation and brand value in the market over the years as they control 80% of transatlantic seats. but now the market has become very competitive as some Norwegian and other airline companies are entering the market providing lowest fare on board experiences to the customers. The fare provided by these Norwegian airline agencies is 5 times lower than and the fair provided by International American airline agencies. In the market customers always have a tendency to switch to other organisation which are providing services at cheapest fare. The sales of these three big International American careers has been dropped. In this study the learner will discuss how these three big International American Agencies should adopt proper marketing strategy in order to maintain the brand value and reputation in the market.
Marketing in competitive business is not a part of business activity rather it would be better to say that marketing is the business. The term marketing includes all types of business activity for example promotion advertising the product and the process of making the unique product and the services in order to fulfill the needs of the customers (Gebauer, Saul, Haldimann and Gustafsson 2017). The main role of the process of marketing in competitive business is consumer research through advertising the products and services to the customers and reaching out to the customers in order to get the full view of customer’s behavior in the market. Consumer research is the process to identify the need for a products and services in the market and to monitor the sales pattern of the similar products closely. Effective marketing policy should focus on reaching out to those potential customers and making them aware of the new or modified products and services and making them purchase their offerings. International American airline agencies- Delta airlines American airlines and United airlines should focus on the strategic marketing policy in order to regain their brand value.
According to (Jr et al. 2015), the term marketing includes all types of business activity for example promotion advertising the product and the process of making the unique product and the services in order to fulfill the needs of the customers. According to (McDonald and Wilson 2016), the process of marketing includes all kinds of business actions for example planning and fixing a price and promoting or advertising the products and the services to the customers or to the potential customers and the distribution process. Marketing is a kind of business action that delivers to the living standards of a community or a group of population. Many experts have also given a broader definition of marketing and defining marketing as an art of practice through which an organization is able to provide the value of goods and services to the customers. Some experts would argue that the marketing is an effective strategic practice and art of selling the products to the consumers. According to (Gebauer, Saul, Haldimann and Gustafsson 2017), an organization undertakes the process of marketing in its business operation in order to create deliver or communicate with the customers through selling a new or modified product. The process of marketing is done in order to create a huge customer base and to reach to the potential customers which ultimately benefit the organization and its shareholders. Companies with unique marketing policy understands the behavior of the market and its customers and are able to produce products and services that can fulfill the needs of the customers. In today’s world, no business organization would be able to survive or sustain in the market without proper planning of effective marketing. Development growth and economic triumph of an entity depends largely on effective marketing. According to Pearson (2016), the main function of strategic marketing is to build an awareness of the products and services among the customers and making the customers more knowledgeable about the merchandise which would ultimately lead to an increased sale.
In today’s world market has become very competitive and same products and services are offered by many business entities. According to Armstrong, Adam, Denize and Kotler (2014), there are some basic goals of marketing for example how a product or a service offered by a business organization is different from the others, what qualities and features of a product or service makes it superior to those product or services offered by other business organization, why the customers would buy a product or service from one business organization and not from the others. Effective and strategic marketing process would allow an organization to create a huge customer base making new customers and achieving maximum market share in the process and also improving customer loyalty and the brand value of the organization.
There are various business analysis models that help an organisation to understand its organisational environment and analyse the business strategically and critically (Wheelen, Hunger, Hoffman and Bamford 2017). In this section, strategic analysis of American airlines will be discussed through some business analysis framework like PESTLE analysis, porter’s five forces framework and SWOT analysis.
In order to understand the impact of some external forces on the business of American airlines pestle analysis is discussed. PESTLE stands for political, economic, social, technological, legal and environmental forces.
In order to ensure profitability for long term period in airlines market, it is important to address those political factors that can impact those three big International American carriers. The three big International American carriers- Delta airlines, American airlines and United Airlines are operating in more than 15 countries and these organisations are exposed to the political environment of these countries (Iatrou and Oretti 2016). There are some political factors that need to be addressed in order to enter into a certain market
There are various macro environment factors such as foreign exchange rate level of inflation savings rate etc that affect the business of International American airlines (Hamilton and Webster 2015). The economic factors that should be considered by delta airlines American airlines and United airlines are as follows
The culture of the society, social beliefs and attitudes place a significant role in order to understand the behaviour of the population in a certain market. International American airlines should analyse the following social factors
the impact of technological factors over transportation industry like airlines industry is huge. International American airlines shoot consider technological analysis that has following effects
International American airlines should consider some legal factors while entering into a new market. Those are as follows
While entering into a new market, International American airline agencies should consider and analyse the stability of environmental standards in those areas and its surroundings where they are going to operate. The environmental factors that affect the business of those American airline Agencies are
in order to understand the competitiveness of the airline markets International American airline Agencies should analyse porter’s five forces framework.
As there are plenty of suppliers that provide service to Delta, American and United airlines, these suppliers don’t have any bargaining power over the business process. This airline agents are in a position to demand quality service and make this suppliers agree to their own rules. There are fewer suppliers like Boeing airbus who have some bargaining power for the technological innovations size of the organisation and financial stability (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes 2016).
Customer loyalty is a key thing to success of any business and in case of airline business, the bargaining power of the customer is very high as the customers have the tendency to switch to the alternatives if they are not getting the Quality Services. International American airline agencies should make some strategy in order to keep their customers happy and stay with them by giving discounts or by keeping the price as low as possible.
The threats from other substitute products mainly come from other brands. Delta American and United airlines are competing with other international airline Agencies like British Airways France airlines etc. But rates from other airline agencies are moderate as these three big International American carriers have a huge brand name, technological strength and popularity (Hannigan, Hamilton III and Mudambi 2015).
The threats of new entrants in the airlines market have made it difficult for Delta airlines American airlines and United airlines. The threat of new entrants is very high nowadays in in American international airline market. Some knowledge in airline Agencies are providing loafers to the customers and customers are switching to those Agencies while travelling.
The level and the intensity of competitive rivalry in international airline market in America is very high as there are plenty of small and large players in the market who are competing for the same market share (Holloway 2017).
Strengths
Weaknesses
Opportunities
Threats
Along with the opportunities being created while expanding the airline business into entirely a new market, it creates new challenges too for the companies. an airline agency cannot make all the decisions about what to do to grow their business as those decisions are largely affected by the other organisations and entities.
Various opportunities open up for American international airline agencies while entering into a new market.
The three American international airline carriers named Delta airlines American airlines and United airlines are already operating to more than 15 countries and now they are trying to expand their services to other countries. Expanding their businesses to the other countries
The marketing strategies of American international airline agencies like Delta airlines American airlines and United airlines should be built on some cornerstones for example implementation of information and electronic Technologies in the business operation, ensuring convenience comfort and safety to the customers and providing customers with the best possible services giving them best onboard experiences.
Pricing strategy is one of the key aspects to build a proper marketing strategy for American international airline agencies. Price is one of the most important factors that drives the market and these airline Agencies should aim to be the lowest priced competitor in the market. These companies should make a proper marketing strategy by giving the customers the best possible onboard experiences at a fair and predictable price. These Agencies should also provide discounts for early reservation and buying tickets a long before the journey. they should also give discounts to the customers for purchasing ticket online. Sometimes customers cancel tickets and most of airline Agencies charge high cancellation fee to the customers. These Agencies should charge the customer as low as possible.
Proper promotional strategy always helps a business organisation to reach to a large new customer base and achieve larger revenue high profit margin in future. Delta Airlines American airlines and United airlines should make a proper promotional strategy to strengthen public relations by reaching directly to the customers with well-designed and unique advertisement. These airline Agencies should build Rock solid highly functional and user-friendly official website where the customers would be able to get all important information regarding their journey. Customers always look for information regarding e ticketing and reservation. User friendly website would give customer a pleasure experience and it would be simpler for the airline agents to make the process more efficient and economical.
American international airline agencies should make proper sales strategy in order to make the customers purchase ticket from their own reservations and ticketing services. Sometimes customers don’t want to purchase tickets on their own or they don’t know how to book tickets online. So, they approach to other travel agencies who purchase tickets for the customers. In this process the revenue is shared in the form of commissions. In order to make the customers buy tickets from their own ticketing services, these Agencies should provide proper discounts to the customers and make the process of e-ticketing, e-reservation and e-check in convenient for the customers.
Conclusion
Effective and strategic marketing process would allow an organisation to create a huge customer base making new customers and achieving maximum market share in the process and also improving customer loyalty and the brand value of the organisation. An organisation undertakes the process of marketing in its business operation in order to create deliver or communicate with the customers through selling a new or modified products. The process of marketing is done in order to create a huge customer base and to reach to the potential customers which ultimately benefit the organisation and its shareholders. In this study the learner has discussed how the three International American carriers Delta airlines American airlines and United airlines will be able to retain their brand value and reputation in the airline market. In this study, strategic analysis of American airlines has been discussed through some business analysis framework like PESTLE analysis, porter’s five forces framework and SWOT analysis.
References
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