Marketing Plan for Breeze Airlines
24 April 2010
Marketing Plan for Breeze Airlines Air has become the most preferred method of transportation for many people around the world and more travelers are looking for affordable ways to travel between destinations. Consequently, the increase in customer’s demand for cheaper fares has created an excellent business opportunity for low cost airlines to emerge. Low cost carriers have been successful satisfying customer’s demand for cheaper fares and reducing labor cost. “A high quality low-price entry strategy may seem very attractive at first glance. Obviously, an airline, or any startup firm for that matter, is likely to win a market if it can indeed provide a better product for a
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Young college educated professionals and college or graduate students between 21 and 45 years old represent the perfect target market for the low cost fare airline because both groups share similar psychological and behavioral traits. They are meticulous with their money to the extent that price is important when they are purchasing an item or paying for a service because most of them are recent college graduates entering the workforce and others are still pursuing an education with a limited income. Even if they have limited income, they still want to satisfy their lifestyle preferences. They want to obtain maximum value for their money without sacrificing personal comfort. These groups will be targeted because they are open to new experiences and they are price sensitive. Low cost Breeze Airlines SWOT Analysis will provide direction to its marketing strategy. Strengths: Breeze Airline is a promising young airline offering ticket fares at discount price to popular college destinations. It has a team of young customer service that can relate to targeted customers. Weaknesses: Their customer service might not have enough experience in the airline business so the operation might suffer internally for lack of knowledge. Opportunities: The introduction of digital technology on their flights and the use of internet to disseminate their service and reduce cost. “Airlines are
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.
Spirit Airlines, the leading ultra-low-cost, no-frills carrier; the worst all round Carrier charges for every service besides the basic fare. For this purpose, this paper will discuss the Carrier ticket distribution channels, pricing strategy and product promotion.
carrier; the worst all-around carrier charges for every ancillary product. Established under Airline Segmentation, Spirit targets price sensitive, business-class, middle-class, students and solo travelers within psychographics (Zigu, 2017). Consequently, this paper will discuss the carrier; ticket distribution channels, pricing strategy, and product promotion.
Southwest Airlines differentiates itself from its competitors by its marketing communications as the only low-fare, short haul, high frequency, point to point carrier in America that is "fun" to fly (YouSigma, 2008). Southwest 's promotion starts with understanding what the customer wants and then translating it into meaningful services and products. Because Southwest is intuitive to its customers needs, it helps instill the brand and the commitment. Southwest airlines employs the most basic form of price competition by running ads that encourage potential customers to visit their website for the best online deals (YouSigma, 2008).
United Airlines used questionnaires to classify their potential customers by their motivations and identified nine motivational segment profiles which are: global executives, schedule optimizers, corporate troopers, mile accumulators, reluctant travelers, tour takers, quality vacationers, travel seekers, and frugal flyers (The Times 100, 2003, p. 2). The reasons why travelers choose to fly United varies. For example, some may choose this airline because of price, while others choose it because of their frequent flyer program, schedules, or other services.
The future of the industry is in JetBlue’s “cheap chic” style. Airlines need to maintain a cost effective price point while also not appearing cheap. Small
Within the category of services, it applies to different types of customers such as family, solo travellers and business travellers, the key focus of this report is on the upper-class service for business travellers and how it influences business travellers to purchase a flight package from them instead of using their competitors Jet airways, British Airways or Emirates. We can discover the decision-making process and how it operates but it’s important to understand the marketing strategy behind the company that makes it very successful and attracts more business travellers to fly with them.
To have a complex salivation you need to have jobs and in ancient Egypt, they had a lot of jobs. Social classes are jobs and other things like The Ancient Egypt money was a bit different than the way we pay. In Ancient Egypt, if you did not have paper money you would pay with jars that you made.
The risk of entry into the airline industry by potential competitors is low due to the “liberalization of market access, a result of globalization. According to the IATA (International Air Transport Association), about 1,300 new airlines were established in the last 40 years,” (Cederholm, 2016). The cost structure of businesses in an industry is a determinant of rivalry. In the Airlines Industry, fixed costs are high, because before the organization can make any sales, they must invest in air crafts, fuel and service employees. These items come attached with hefty price tags. Industries that require such enormous amounts of start-up capital as predicted by many analysts
Research was conducted to understand passengers’ views and attitudes towards Low-Cost Carriers and Full-Service airlines. The research was focused on a group of passengers with one crowd using a Low-Cost Carrier and the other using a Full-service airline. The airlines that will be used in the research are Aer Lingus and Ryanair running in a fully developed European market, and Malaysia Airlines and Air Asia currently functioning on a recent developing domestic market in Asia. After conducting the survey, results show that the younger people are more likely to use Low-Cost service carriers with Ryanair accounting for 24% and Air Asia with 47% who all belong in the age group of under 25 years. 87% of the age group were travelling to visit
Small business customers and leisure travelers were the ones benefited the most from American’s new fare structure. Previously, small business customers who does not have the power and volume to negotiate with airline companies for discounted deals had to pay higher rates for first-class or coach tickets. American’s new cost structure reduced the full coach fares which allowed small business customers to purchase flight tickets at cheaper prices more conveniently. Leisure travelers, unlike business travelers, have more flexibility in terms of travel dates, thus allowing them to take advantage of the advance-purchase discounts and Saturday-night stay discounts under the new fare system.
The airlines do not focus on the combination of quality and good service at a fair price; its focus is instead only on providing ultra low cost. It also charges customers for value added features and services. Thus the pricing is value added pricing. When compared to the competitors of Spirit for operating costs per seat mile; it is lower compared to other major airlines. The important points like encouragement to demand stimulation and preference for its low-cost model makes it successful for its low-cost pricing strategy.
There it lay, isolated, taunting me. My hand reluctantly slithered into the mailbox, like a frightened snake. My head told me the letter would not change anything, but my heart knew what it wanted. Nerves caused me to nearly lose my mind, as well as my lunch. I sliced the envelope to reveal my fate as well as place in the art program. As my eyes skimmed the text, they grew wide, my heart inflated, and my adrenaline seemed to turn from a boil to a simmer. The news? I was an art major. I am able to do what others cannot with a pencil and an imagination. Little did I know, the art major group would soon give me a new definition of community. I gave my ideas talent, time, and loyalty. I gave my all, and in return
In the last few decades, our nation has seen a modern day revolution in women’s participation in the workforce. Today, women are independent breadwinners for their families. In education, modern day young women have pushed through boundaries and are doing just as well if not better that their young male counterparts in educational achievements and earn advanced degrees. Regardless of these advancements, women still trail behind their male peers with respect to education and careers in science, technology, engineering, and mathematics (STEM).
The success of budget airlines forced traditional operators to lower their prices by adapting internet sales and yield management techniques. However they still struggle to compete with low prices offered by the LCCs. Further reductions in traditional airline ticket prices are expected.