Answered: Is the Pegasus Airlines established a…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Related questions

Concept explainers

Question

1. Is the Pegasus Airlines established a customer value relationship? If yes, how do they establish? If no, what was the problem of the Pegasus Airlines? In addition, however, whether or not the Pegasus Airlines were able to establish customer relationship or not you are required to formulate a Marketing Activities/Plan for the Pegasus Airlines. The Management of Pegasus Airlines is asking you, further, to provide framework of your designed Marketing Activities/Plans.

Transcribed Image Text:CHAPTER 1 MARKETING: CREATING AND CAPTURING CUSTOMER VALUE well as continuous development is provided to ensure regular career progression and high levels of motivation through a solid performance system and regular personal feedback. Early in the process, Pegasus selects the people who best exhibit these values while directing the right person to the right department at the right time. The last tenet of Pegasus' customer-service strategy lies in the regularly scheduled and innovative destinations it offers. Not only does Pegasus share planes with Air Berlin and Izair, but it also has charter and scheduled services to 70 airports in was developed called 'mobile phone fly', whereby consumers accumulated for each SMS an award of 5 per cent toward a Pegasus ticket discount, emulating the 'shop and miles' strategy of traditional airlines. Over time, Pegasus hopes to create a sustain- able relationship with its customers while leveraging the possi- bilities of social networks and other digital technologies. Pegasus' strong word of mouth has also been important in the airline's success and is reflected in the words of customers on a special Europe and Asia. Pegasus operates regular flights to Georgia and Lebanon, providing additional destinations outside of Europe, thus maximising Turkey's short flights opportunities. These flights have prompted a strong reaction from the competition. The regular service to Tbilisi (Georgia) has been met by an announce- ment from Austrian Airlines of the withdrawal of its own regular flight to the same destination. This prompted speculation in the website titled 'Pegasus Listens to You'. Sections of the website encourage customers to generate ideas for service improvement, to debate generic questions and topics relating to the airline's management and services, and to encourage customers to report problems they have encountered. Since 2005, Pegasus has shown that a low-cost airline can deliver low fares, excellent service and steady profits. It has demonstrated that even in the airline busi- ness, entry barriers can be lowered and a powerful brand can be created. Pegasus embodies success in four marketing corner- stones: (i) it ensures successful service through safety, training, and its devoted employees; (ii) it employs creative communica- tion with its customers; (iii) it offers great destinations and easy access to international hubs; and (iv) it uses efficient manage- media about the changing preference of air travellers where low- cost companies are seen as a sustainable substitute to middle- and high-cost traditional carriers. Pegasus has also successfully devel- oped its internal market with over 19 destinations within Turkey. LOVE YOUR CUSTOMERS Customers are the most important aspect of any service industry. Since the global recession, many airlines have seen a drop in ment techniques, delivering low prices with a high-quality service experience. To be successful in the low-cost airline industry, great attention needs to be paid to customers' changing travel patterns and needs. Booking flights, post-purchase evaluation through regular customer relationship management, and intangible value created by a variety of details make Pegasus a formidable brand in the low-cost airline industry. passenger numbers, and it is a challenge to achieve and sustain profitability. In the case of Turkey, other factors provide further opportunities for the airline industry. On the one hand, the economy is growing at a faster rate than the rest of Europe, and on the other hand, as is the case in many emerging countries and in traditional industrial areas of developed economies, a substantial expatriate population exists. New migrants or inte- grated second- or third-generation migrants usually provide opportunities for travel due to cultural affinities and under- standing. Regular holidays or business-related trips 'home' can create a good foundation in terms of overall capacity planning. In terms of weekly seat capacity, Pegasus currently ranks in the top 30 among European airlines. While most airline customers are loyal because of frequent flyer programmes, in the case of Pegasus and Turkey in general, further affinities can be devel- oped and sustained, including a certain sense of nationalist pride or nostalgia. History can also provide potential future markets. Countries such as Azerbaijan, Turkmenistan, Uzbekistan and others around the Black Sea region are long-term trading part- ners of Turkey and have been growing rapidly since the breakup of the USSR in 1991. This potential is also opening up opportuni- ties with countries such as Iran, Iraq and Syria, which have large, young markets both in terms of tourism and business. However, Pegasus customers want more in terms of social network rela- tionships with the brand and, therefore, Pegasus aims to keep up with its customers even when they are not flying. For example, Pegasus has a Facebook page complete with a game entitling customers to win free tickets. The company also has a Twitter account, through which it offers customers special competitions. Furthermore, in association with Vodafone, a special campaign

Transcribed Image Text:COMPANY CASE experience at the airport. It provides exclusive allotments for the first 72 hours of parking with a valet parking option, VIP and Business Class lounges, car rental and many hotel partners where customers can get some discount. Unlike many airlines, a one- class interior configuration is operated, but passengers can pay a small extra premium to choose their seats. This is complemented by the Pegasus Flying Café, which offers a range of refreshments and catering options for a small additional charge. Pegasus offers further customer service options, including a 10 per cent discount to passengers on international flights who order their in-flight meals 48 hours in advance. An in-plane bulletin is also available, Pegasus Airlines: delighting a new type of travelling customer Until 1982, Turkish Airlines was the only airline company oper- ating in Turkey, and it had no domestic competitors. Following deregulation and reduction of government controls across the airline industry, 29 airlines were established, with 22 finding them- selves bankrupted a few years later, demonstrating the strong level of both internal and external competition and how the airline industry is affected by economic instability. Over the past 20 years, Turkey has experienced a number of financial crises, as well as political turmoil culminating in a military coup in 1980. Pegasus was created in 1989 as a charter airline partnered with Aer Lingus to create all-inclusive holidays. In 1994, the company was sold to a Turkish investment fund and in 2005 was re-sold to Ali Sabancı (of Both are fully licensed and are used to train new staff members. with a mix of offers and features on certain destinations. This bulletin is free for customers but generates income via adver- tising. These services are supported by Pegasus' own flight crew training centre and maintenance organisation, Pegasus Technic. Sabancı Holding, an influential family owned business in Turkey), who changed the airline from a charter airline to a low-cost airline. In 2008, Pegasus carried a total 4.4 million passengers in Pegasus also provides these training and technical services for other local airlines. Pegasus' innovative customer service won the company an award for 'Best Airline Business Price' in 2006. Turkey, more than any other private airline. As of 2010, Pegasus Indeed, the company regularly receives awards and recognition for, among other things, its management strategy; initiatives in website development; and its marketing strategy, which employs a new approach to advertising that includes viral marketing, flash campaigns and mobile campaigns. This strategy has succeeded in has a fleet of 27 Boeing planes with a further 24 on order. Its major competitors - other than the national carrier, Turkish Airlines - are Onur Air, Fly Air, Sun Express and Atlasjet. Instead of operating from Istanbul's main airport, which is overcrowded, Pegasus Airlines flies from Istanbul's second main hub, Sabiha Gökçen making Pegasus the most searched airline in Turkey on Google. While the industry grew at a rate of 20 per cent between 2005 and 2008, Pegasus grew at the rate of 57 per cent, which certainly indicates the success of Pegasus as a low-cost carrier. The growth rate was sustained during the most recent global recession. International Airport. Its on-time departure rate is 93 per cent, which is well above the European average of 81 per cent, demon- strating the importance the company attaches to customer service. TRULY CUSTOMER FOCUSED MORE THAN AMENITIES What is the secret to the airline's success? Quite simply, it involves making sure Pegasus is continually developing to meet passenger expectations and priorities. Pegasus has put in place a yield management strategy for ticket pricing, using the strategy of Southwest Airlines of North America as an example. Supply Although the tangible amenities that Pegasus offers are likely to delight most travellers, general manager Sertaç Haybat, recognises that these practices are not nearly enough to provide a sustain- able competitive advantage and that Pegasus must always present its customers with the most economical flight opportunities. Here the importance of the crew training centre remains crucial. Haybat emphasises that a culture that breeds trust is the most crucial factor. It's this personal culture that gives Pegasus' customer service an edge. Indeed, taking care of customers starts as early as a customer's first encounter with the Pegasus brand and website. In 2007, Pegasus was recognised as one of Turkey's top brands, and demand, as well as time, are taken into account in the ticket pricing strategy; for example, if customers book early (60 days) they receive further savings while those who book later pay the maximum current fare offered by competitors. The system is complemented by an electronic ticket policy whereby passengers receive their information via e-mail and SMS. Pegasus has also developed a credit/loyalty card, which offers customers a range of benefits including insurance rate reductions. Although airlines can't often control flight delays, Pegasus has developed a specific customer satisfaction guarantee policy that provides customers with (i) in the case of a delay greater than 3 hours, a refund of the ticket and (ii) in the case of a delay greater than 5 hours, a refund and a free ticket. Pegasus also offers a customer service chosen from a range of 137 national and international brands operating in the country. Of the 137, only 26 were awarded the title of 'Superbrand Turkey', including Pegasus. Pegasus' employees work as a team with their goal being a common understanding of the airline's long-term objective to provide a democratic envi- ronment in which everyone shares their ideas freely. Training, as 36

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.