Question:
Write an essay on Etihad Airways.
Etihad Airways has been one of the leading Airliners in the domestic market. Besides this, the brand has a substantial presence in the global airline industry due to its innovative marketing policies. The marketing mix of the brand has played a decisive role in facilitating towards achieving international recognition. Etihad Airways has been charging moderate prices without compromising the quality of services offered to the passengers. The brand has positioned itself as a luxury airline targeting the elite of the society. However, there are has been negative reviews from consumers which has adversely influenced the brand image of Etihad Airways. The following study evaluates the marketing policies of Etihad Airways, in the context of its business performance and sustainability.
The brand is renowned for offering quality service to the consumers and has created a distinct brand identity for itself in the global market. As such, it becomes essential to analyze the marketing strategy for the brand, in the context o f the global market. In addition, it remains to critical to address the marketing strategies of the brand that have enabled the brand to develop brand loyalty and reputation among the consumers. Etihad Airways has been introducing innovation and growth in the business operational policies. Thus, the product lifecycle of Etihad Airways has been strengthened by the innovative business strategies that have been adopted by the business enterprise. Therefore, it becomes essential to evaluate the marketing operational strategies adopted by the business enterprise.
The following assignment evaluates the marketing objective of Etihad Airways. Ethihad Airways the leading airliner in the United Arab Emirates. The brand is based in Abu Dhabi. It is an international organization that offers airliner services to all the major cities of the world. Thus, the marketing mix as well as the marketing plan adopted by the business organization has been stated. Besides, this the Strengths as well as the weakness of the brand has been analyzed. Furthermore, the necessary factors in the external environment of the organization like political , economic , environmental , technological as well as legal has been evaluated .
According to Agudo et al (2012), these attributes have been a positive influence on the marketing policies of a business enterprise. Also, the product life cycle stages of the brand have been evaluated. Baker and Parkinson, (2016) mentioned that Etihad Airways has been a major innovator and that has assisted the brand to create a name for itself in the global market. Therefore, it becomes pertinent to evaluate the existing marketing strategies of the brand and its relevancy towards the success of the business enterprise.
Etihad Airways is the leading airliner of the United Arab Emirates and is situated in Khalifa City, Abu Dhabi. Currently, the brand operates more than 1000 flights every week to various international Destinations. According to Baudet and van der Meulen (2014), in the existing annual year, the brand has increased its business volume and sales revenue by at least 22.3% from the previous year. Besides this, Etihad also operates Etihad Holidays and Etihad Cargo. These services have been a significant contributor to the sales revenue of the brand. The brand operates from Abu Dhabi International Airport. In the context of the marketing management policies adopted by the business organization the marketing mix strategies should be emphasized upon. Therefore, product, price, promotion as well as the distribution policies adopted by the business enterprise shall be critically analyzed.
The marketing management policies adopted by the business enterprise have ensured that the brand survives in an intensely competitive market environment . In addition, the brand promotional policies adopted by the business enterprise shall be essential to the creation of a distinct brand identity in the international market
Etihad Airways has been able to create a sustainable loyal base in the International market. This has only been possible by the effective marketing and the operational policies followed by the business enterprise. The following is the marketing mix policies followed by the business enterprise
Price – Reasonable prices have been an essential marketing strategy followed by the business entity. The economic and the business class have been an essential part of the business organization followed by a business entity. According to Dasgupta et al. (2015) mentioned that the brand has been using penetrating pricing strategy to offer low prices than its competitors in the market. In this regard, it can be said that the low prices of oil is a major factor that has been helping Etihad to attract a large number of consumers towards the brand. Thus, the penetration pricing strategy has been a determining factor towards the substantial global market share of Etihad Airways.
Product- Etihad Airways have a wide range of service for different options available to a business entity. Therefore, the product strategy implemented by the business entity has enabled the business entity to enhance the business sustainability in the international market. The product portfolio of Etihad Airways is discussed below
Diamond First Class – The Diamond First Class consists of- Diamond first class (suite) as well as the Diamond First Class. In order to provide unique services to the consumers, Etihad introduced the luxurious class of flying that offers complementary services to consumers. East et al.(2013) mentioned that In this category the brand has targeted the specific segment of consumers who are willing to spend a considerable sum to avail the superior services offered by the Etihad Airways.
This also includes providing first class facilities to the passengers consisting of relaxation spa as well as refreshing showers offered to the employees. In addition consumers can also choose from champagne bars as well as the cigar lounges offered to the consumers. In the context of offering family entertainment, family rooms are offered to the employees for the unlimited usage of TV shows and the internet.
Pearl Business Class – The Etihad Airways has implemented the business class of passengers who would be travelling for business purposes to different parts of the world. Thus, this has helped the airways to cater to a wide range of professionals that would be using Etihad to travel to different part of the globe.
Coral Economy Class- Attracting the economy class of passengers has been a major concern among the different categories of passengers. Therefore, the band have enhance the quality of the aiservices offered to the passengers by offering certain complementary services to the passengers . This includes – a 32 inch space for the leg room as well as an integrated footrest. In addition, a strong power socket and a USB port is a necessary requirement for the business enterprise.
Promotion- Hardwick et al. (2014) mentioned that Etihad Airways have implemented online business operational policies to develop pertinent promotional strategies to assist the business enterprise in the operational policies of place. In this regard, it can be said that customer feedback is considered to frame the marketing and the operational policies to assist the business enterprise in its growth.
Media advertisements – The brand have been using pertinent advertisement policies through the use of the digital media to reach out to a number of consumers in the global a market . In addition, the digital media have been used to offer online booking as well as advanced selection of seat . Besides this, the digital media have been used to gather consumer feedback relating to the flight services offered by the brand. The official website of the brand has been effective in informing the customers about the latest news of Etihad Airways. Furthermore, the brand has launched television campaigns to display the innovative services offered by the brand to gain consumer loyalty and create a distinctive brand image .
Place- Etihad Airways carries passengers to different parts of the world. Therefore, Mihart (2012) noted that it is a global organization that assists the business enterprise to cater to the needs of people coming from different sections of the society. Apart from carrying of passengers the brand has offered the facility of carrying of passengers to different parts of the world .
Distribution channels- Etihad Airways has provided the facility for carrying of passengers to different parts of the world. Therefore, strong distribution channels have helped the brand to offer maximum customer service facilities to assist the brand to aggressively adopt expansion initiatives. Thus, it becomes necessary to
Growth- According to Mihart (2012), Etihad Airways has been one of the fastest growing airliners in the recent times. In addition, to o its expansion initiatives it has been able to consolidate its position as one of the safest airliners in the market.
Less prices of air tickets when compared to the substitute brands in the market has assisted the business enterprise to gain consumer loyalty as well as a distinctive brand identity among consumers in the domestic as well as the international market .
Innovative services – Newton and Meyer (2013) mentioned that the brand has been offering innovative services to the consumers in terms of the seating arrangements as well as the entertainment activities offered. Besides this, it has established successful business partnerships with reputed business houses to offer a wide range of services to the
The brand reaches flies to comparatively lesser destinations than its major competitors in the market. Airliners like Emirates as well as the Qatar Airlines have been flying to more than ninety destinations every year.
Ineffective support of customer service center is another important issue that has been affecting the brand reputation of Etihad Airways. This has led the brand to develop a negative brand image among its consumers. As such, consumer issues have been received which remains to be addressed. Thus consumers loss has not been adequately compensated which has led to financial losses of individuals.
Waiting time – Pearce (2016) mentioned that there has been a consumer issue that has been received due to the longer waiting time in between connection flights. As such, these has been an adverse influence on the business operational policies of the business enterprise .
Strategic alliances – The brand has established strategic alliances with other brands to enable the business enterprise to strengthen the operational policies of the business enterprise. Therefore, Etihad Airways can use the business partnerships to strengthen the financial as well as the non-financial resources of the business. According to Prybutok (2012), the strategic alliances of the brand has assisted the brand in its expansion initiatives.
Location – Etihad Airways is based on Abu Dhabi. Thus, this is one of the essential parts of the marketing as well as the operational policies of the business enterprise. The Middle East is one of the hub of trading and commercial activities. Therefore, this would enable the business entity to gather the essential resources for smoother operational policies to enhance the sales revenue of the brand.
Emergence of the substitute brands – Ramsay et al. (2013) mentioned that the emergence of substitute brands in the market shall pose a significant threat to the commercial viability of Etihad Airways in the domestic market . As such , it is necessary that the threat of the substitute brands in the market is overcome through the pertinent marketing and the operational strategies of the business enterprise . Besides this, the natural environmental conditions have disturbed the general operational policies of the brand. This would result in unnatural wastage of the resources of the business enterprise. The rises in the prices of oil have interrupted the operational policies of the business enterprise.
The product life cycle in the case of the Etihad Airways has been lengthy considering the unique services the brand is offering to the consumers. According to Rao (2015), Etihad Airways have provided unique customer service policies that have played a crucial role in its growth in the global market . As such, there has been quite a contrast with the rivals in the market which have struggled with the operational expenses for the business enterprise. Saleh et al. (2014) mentioned that the brand has restricted the wastage of unnatural resources for the business enterprise. Thus retaining the financial as well as the non-financial resources for the business enterprise has been critical to its success both in the domestic as well as in the International market . Currently, the brand is in the growth stage and is yet to achieve it full potential. The future looks promising for the brand since it has the required resources to offer a range of services to consumers irrespective of the geographical location in which they are based. Schiffman et al. (2013) mentioned that the product life cycle of reflects the strong market position of Etihad Airways irrespective of the changes in the market condition or the existing industry trends. The brand is in an upward rising stage and continues to retain a substantial market share in the global market.
The Porters five forces shall enable the entity to evaluate the practical market scenario. This would assist the business organization to frame the long term marketing goals and objectives. Following are the necessary constituents of Porters five forces.
Supplier Power – Solomon et al (2013) mentioned that the supply power in the case of Etihad Airways have been a core constituent of the operational policies of the brand. The suppliers have offered the required parts for the smoother operations of the business enterprise and therefore are an essential part of the supplier’s power. However, there are not too many suppliers to provide Etihad with the necessary constituents to enhance productivity with the minimum amount of time and effort. Therefore, the brand is restricted with the choice of suppliers that are available for the brand in the global market.
Buyer Power – Since, the brand operates on a global scale there is no shortage of buyer power in the global market. As such, it remains important that Etihad leverages the purchasing power of the consumers in the global market. Thus, buyer power has been playing an essential role for the growth and the development of a business enterprise in the global market.
Competitive rivalry – Spurling et al. (2013) mentioned that the competitive rivalry is a specific attribute influencing the product design of a place. In the case of Etihad Airways, the brand has been operating in a perfectly competitive market where there is free entry and exit. Therefore, it has developed pertinent marketing strategies to ensure survival in an intensively competitive market environment .
Substitution threat – Turnbull and Paliwoda (2013) mentioned that There presence of substitute brands has been a major threat to the business sustainability of Etihad Airways in the global market .Thus, there is strong competition for the market share in the international market . Therefore, the commercial viability of Etihad Airways would be under significant threat due to the emerging substitute brands in the market.
Threat of new entry – Papadopoulos and Heslop (2014) mentioned that The threat of new entry has been an essential feature of the brands in the international market. The airline industry has been a commercial viable one. Thus, the new brands have been entering the market and offering airlines services at a lower price to the consumers.
Thus, Czinkota and Ronkainen (2012) mentioned that the Porters five forces has been a practical method to assist the business organization in evaluating the existing marketing situation of a place. In this regard, it can be said that marketing management process is initiated by identifying the target segment of consumers. Thus pertinent marketing policies should be framed in order to explore newer business areas. As such, certain attributes like the demand of the consumers as well as the choices and the preferences of consumers are the factors that can be considered in framing the operational policies of a business enterprise .Hollensen (2015) mentioned that Etihad Airway seeks to position itself as a luxury brand and offer exclusive services to the consumers. However, it strives to keep a reasonable rate so as to cater to a maximum number of consumers in the global market.
Paliwod and Thomas (2013) mentioned that the marketing mix method adopted by Ethihad airways has enabled the brand to be the leading airliner in the domestic market. The product category has a diverse range of products to assist the brand in shaping the operational activities of the business enterprise. As such, it is essential that the brand is able to address the needs of the consumers. in addition, consumer issues has been dealt in an appropriate manner thus assisting the business enterprise to gain a maximum market share in the International market .In this regard, it can be said that Etihad Airways has been able to offer unique services to its consumers. Therefore, this has assisted the business enterprise to differentiate itself from its competitors in the domestic market.
Thus, Gilligan and Hird (2012) mentioned that pertinent product, place , price as well as distribution strategies has enable the brand to have a positive perception on the consumers , thereby , delivering consistent=t business performances over a period of time Etihad Airways has been successful in targeting the segment of consumers and make pertinent marketing policies accordingly. Its target segment of consumers is mainly the affluent class of consumers travelling mainly for business and recreational purposes. Turnbull and Valla (2013) mentioned that to attract these segment of consumers it is essential that the brand offers a luxurious experience to the passengers availing the air craft facilities of the business enterprise. In addition the brand offers a discounted rate to its most loyal consumer. This has assisted the business enterprise to consolidate its existing position in the market.
The Pestle analysis would assist the business enterprise to examine the external market environment. The following is the Pestle analysis of the Etihad Airways
Political – The political factors shall include the various political characteristics that would affect the market position of a business enterprise. In this regard, the political factors are the nature of the political situation in the country affecting the business operations of a specific place in the market. Besides this , Gnizy and Shoham (2014), the support of the government towards the trade and commerce in a palace is another essential factor that would have a pertinent impact towards the operational policies of a business enterprise.
Economic- According to Katsikeas (2014), the economic condition of a place shall largely determine the business operational policies of the Etihad Airways. Besides this, the purchasing power of consumers is a requirement towards attaining the long term business objectives as well as the goals of a business enterprise. Majaro (2013) mentioned that the presence of a large number of airports are a necessary attribute which can have a considerable influence on the scale of operations of a business enterprise . A large number of airports would increase the number of flights carrying passengers , This shall lead to a larger revenue and the business scale .
Social- The social attribute are the existing trends of the the consumer behavior as well as the choices and the preferences of consumers. As such, Meissner (2012) noted that these attributes refer to a specific set of behavioral traits that is common to the place. In the case of Etihad Airways, the brand has been executing customized policies that are only suitable to the specific region where it is operating.
Technological- Eng and Ozdemir (2014) mentioned that Etihad Airways have implemented advanced technology mechanisms to ensure smooth business operations. Thus, the consumers are offered superior services and have been ensured o f a pleasurable flying experience. Innovation in technology has been one of the characteristic feature of Etihad Airways which have facilaited the brand into a superior market position.
Legal- Etihad Airways operate in a number of countries. Thus, the organization is subjected to various flying rules and procedures affecting the operational policies of a specific place . According to Diamantopoulos et al (2013), this has presented Etihad Airways with a number of obstacles that have stagnated the growth of the brand in the recent times. This has also been one of the reasons due to which the brand has faced business challenges, in the context of achieving sales revenue.
Environmental– Etihad Airways have been committed to offer the best consumer services to the brand. Thus, Weinstein and Pohlman (2015) noted that it quickly adapts to the local culture and the traditions of a specific place. As such, this has been one of the important reasons due to which the brand has achieved greater success in the international market.
Conclusion
It can be stated that Etihad Airways have been able deliver consistent business performances in the recent past . It has been one of the leading airliners in the domestic market. In addition, the brand has been able to execute this business performance in the international stage as well. It has been carrying passengers to almost all the major destinations around the world. The sales revenue have been substantially increased in the existing financial year primarily due to its innovation and excellent service delivery facilities. The Pestle analysis of the brand reflects the circumstances under which the brand has to operate. The brand having a wider scale of operations have to deal with a number of political, legal and economic issues when running its operations in a number of countries. Thus, Etihad Airways has to consider these factors when framing the business operational policies of a particular place. Besides this, each place shall have particular and distinct characteristics that would determine the consumer behavior in a specific place. Therefore, it becomes necessary that the culture and traditions of a place is being successfully adhered, to enable the business entity to create a positive brand image among the local consumers.
The product life cycle represents the current market position of the brand. In addition, it assess the response of consumers to the various flight services offered by the business entity. Etihad Airways is significantly is in a growth stage in terms of the services that is being offered to the consumers. and having a positive influence on its business sustainability of the brand . The marketing mix of the brand states the 4 Ps and its impact on the operational performance of the business enterprise. In terms of the product range offered to the employees , there has been a marked difference with the substitute brands that are currently existing in the market It has been able to offer distinguished services to the consumers . In addition, it has been able to identify with the different segment of consumers and acting accordingly as per their needs .Thus, there are different classes of seats availability as per the demand of the consumers . In the context of place, Etihad airways fly to all the major destinations in the world and would be widening its range in the recent times. As such, it can be said that the brand would be able serve consumers coming from different backgrounds, nationality and culture. Etihad Airways has been pursuing aggressive expansion policies and is a established name in the global market. The brand has successfully recognized its target segment of consumers. In the case of the brand, its target segment of consumers is the privileged class travelling for business and recreational purposes. This category of consumers has primarily been a a large part of the sales revenue of the brand. The brand has rightly positioned itself as a luxury airline catering to the elite of the society. However, the brand has adopted a penetration pricing strategy to offer prices which are less than the industry standards. Therefore, it seeks to serve consumers from various sections of the society.
The following recommendations can be made to Etihad Airways to retain their existing market share as well as to enhance the brand value and the business performance of a business enterprise.
Widening the scale of operations – In order to successfully compete with other rival brands, the brand can add to its existing list of flying destinations. This would assist the brand to increase its share of passengers and improve the annual revenue inflow.
Addressing consumer issues – The brand should give considerable emphasis to customer issues. In the past issues were not adequately addressed and this had a negative perception on consumers availing the services of Etihad Airways.
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