Marketing Concepts and Strategies in Air Canada

This document discusses the key marketing concepts, strategies, and programs used by Air Canada, the largest airline entity in Canada. It explores the application of product strategy, branding, and promotional strategies in achieving marketing objectives. The document also highlights the use of marketing mix and STP principles in the daily operations of Air Canada.

Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
a. Key marketing concepts together with terminology which are applicable to the entity..........1
b. Identification of marketing strategies together with programs which help the entity in
achieving objectives. ...................................................................................................................3
c. Two marketing concepts with principles used in organisational daily operational.................4
TASK 2............................................................................................................................................7
Explanation of relationships of marketing with other departments of the company. .................7
Covered in mini poster.................................................................................................................7
CONCLUSION and RECOMMENDATION ................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Airline industry is mentioned to business which deals in transporting paying passengers
addition to freight by air by regularly scheduling routes for airplanes and helicopters. Airline is
an entity which delivers air transport services through utilising aircraft mediums for travellers or
cargo (Baker, 2016). It is either scheduled or works through charter operators. Marketing of
tangible items are generally easier and successful than marketing of intangible services. For this,
airline industry is among growing together with prominent sector worldwide. Within airline
industry, the importance of marketing is growing as it assist entities to analyse apparent needs
along with true preferences of customer. For maintaining suitable positions, organisations
performing activities in the industry uses effective channels, modes and techniques of marketing
as it is significantly important for responding to emerging trends and can also emphasis on
introducing diverse changes within the sector.
For this assessment, Air Canada is considered which is flag carrier addition to largest
airline entity of Canada in terms of passengers carried together with fleet size. The headquarters
of the selected airline company are situated at Montreal, Quebec since 1937. The assessment
includes key marketing concepts with some terminology that are applicable on entity, marketing
strategies as well as programs, concepts and principles. It also discusses cross functional
relationships among marketing and other departments in the business. Lastly, some
recommendations are provided through which the organisation can improve its effectiveness
while applying concepts, programmes along with strategies of marketing.
MAIN BODY
TASK 1
a. Key marketing concepts together with terminology which are applicable to the entity.
Marketing concepts are defined as the philosophies which organisational managers
adopts for analysing customer needs so to frame impelling determination for satisfying all the
needs in better ways than competitors (Benzo, Mohsen and Fourali, 2017). In context to Air
Canada, application of few concepts and terminologies having relevance with marketing helps in
pursuing activities for responding changes that arises in the business environment. The concepts
assists in understanding interplays among diverse variables, detecting impeding changes addition
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to prepare the entity for exploiting them. Few of the concepts and terminologies that managers
of Air Canada applies are explained underneath:
Product Strategy: It is said to roadmap of commodities that outlines end to end product
vision so to achieve big picture context related to what the tangible commodity will become
(Bush, Bell and Middlewood, 2019). Management team of Air Canada uses product strategy at
the time they plan strategies and practices of marketing so to identify directions of organisational
workings. In addition, with application of such strategy, marketers ensures development of
suitable and effective service strategy as per targetted customers needs so to satisfy their needs at
huge extent. Herein, main emphasis through product strategy is to provide airline flights at
affordable rates as the entity facilitates intangible services that are important element of the
products sold by them.
Branding: Branding is described to marketing practice to create a name, image, design
addition to symbol which determines and separates a product identity from another ones. It aims
in building differentiated as well as significant presence in dynamic market which draws
attention and retains potential customer base. Branding strategy is one of action plan that
business uses for differentiating their offerings from rivals. It helps in identifying what sort of
image the firm wants to build for their targetted clients. In context to Air Canada, effective brand
strategy are developed through emphasising all activities so to align customer's wants, demands
with business objectives. Air Canada has changed its plane colours from black and white to
Maple Red Leaf accent as well as distinctive black belly that makes their aeroplanes instantly
identifiable as final approach (Branding strategy of Air Canada, 2020). Along with this, the
business concern uses hashtag campaigns that are considered its effective branding strategy for
developing brand image and position in market.
Promotional strategy: Promotion is a marketing communication and concept that is
used for persuading as well as informing target audiences towards the organisational products,
services with any issues. Organisations applies promotional strategy so to inform, aware,
persuade together with inform targetted audiences for the commodities. In relevance with Air
Canada, marketing team prefers mainly to use social media, unique advertising, distinctive flight
perks, and loyalty programs as their major promotional activity. Loyalty programs of the entity
persuades flyers to make bookings for repetitive flights. Distinctive flight perks of selected firm
includes in-seating entertainment systems that entice customers to prefer the airline every time
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they flies. By using social media channels, marketers informs customers about all latest and
existing offerings that helps in increasing sales volume of the flights.
b. Identification of marketing strategies together with programs which help the entity in
achieving objectives.
Marketing strategies are termed to overall game plan of company to reach prospective
audience. It comprises organisational value proposition, data related to target customer
demographics, key brand messaging and various high level dimensions (Child, 2015). Similarly,
marketing programs are well designed together with coordinated activity sets that assist in
improvising sales or other organisational goal. With effective marketing strategy as well as
program, managers of Air Canada develops flight services and commodities that have potentials
for making huge profits and achieving long term objectives smoothly. Through these
frameworks, respective firm competes achieves edge over rivals, discovers areas that impacts
growth objectives, fixing suitable prices for flight tickets as per gathered data through market
research and improving customer base. Selected airline enterprise frames suitable marketing
strategies with programs for gaining edges in competing market, inflating current market shares
together with valuables. Marketing overview in relevance with Air Canada are as follows:
Mission: The mission of Air Canada is associated with connecting Canada as well as the
world.
Vision: The vision of respective firm is to build loyalty via innovation together with
passion.
Objectives: Air Canada has following objectives:
 To attain yearly EBITDAR margin between 17 to 20%.
 To increase profits through leveraging social media campaigns.
 To enhance the organisational reach by 15%.
 To improve market shares proportion by 35%.
Overall marketing strategies: Being large size company, Air Canada offers high
quality airline services and facilities to its customers at reasonable fairs so to build relations with
diverse market and sustain profitability (Dennison and Shenton, 2018). In this context,
management team uses diverse types of marketing strategies including product strategy, branding
strategy as well as promotional strategy. Through product strategy, the entity plans wide
programs that assist in workings for enhancing market reach by providing flights services at
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reasonable fairs through which objective of improving market shares are attained effectively. At
same time, through branding strategy, the entity uses wide campaigns that helps in attracting
more customers and achieving objective of improving market reach as through campaigns and
leveraging profits via social media campaigns as these campaigns helps staff members to
communicate with huge population.
All the objectives of Air Canada are achieved in ethical manner as the entity focused on
concerns of safety and security for ensuring safe travelling to its customers all the time they
enjoys the service which drives customer satisfaction level at maximum. In addition, top
management of Air Canada worked by following all legal compliances and properly booking
tickets so that customers do not face any complexities. Furthermore, objectives were
accomplished through developing environmental infrastructure, managing information flow
among customers and staff members and successfully adopting marketing plan.
c. Two marketing concepts with principles used in organisational daily operational.
Marketing is extensive action that involves diverse concepts as well as principles that
organisation applies for operating workings across domestic territory (Folinas and Fotiadis,
2017). These are the ideas that are utilised for framing suitable marketing strategy. These are
generally customer centric approach that guides entities to prioritising satisfying wants of
customers. For this, Air Canada managers uses certain concepts and principles in relation to
marketing while performing daily operations. The two marketing concepts as well as principles
used at respective enterprise in daily operations are as explained:
Marketing mix
The concept is mentioned to set of tactics that are used in marketing the brand on daily
basis. It offers guidelines and path for putting products in correct place on exact period of time.
At Air Canada, the concept of marketing mix is used for devising marketing related strategies for
the entity. It involves 7Ps that are named as product, place, physical evidence, people, price,
process and promotion. Marketing mix elements in context to Air Canada are presented below:
Product: The company Air Canada operates within Canada Airline within which it offer
diverse sort of products so to fulfil all desires of general audiences. The entity is well popular as
largest domestic addition to international company in context to size of fleet as well as carried
number of passengers. It basically offers services as part of its products through its various
flights including the followings:
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Air Canada Jazz: It was brand name of the main product of Air Canada.
Air Canada Cargo: Through this, Air Canada offers cargo services on daily basis.
Air Canada Express: This is considered as low cost airline which is facilitated by the
respective firm.
Other than these, Air Canada also offers products related to Air Canada's premium or
economy class products on daily basis to its all potential clients according to their suitability.
Price: Air Canada have mass customer base and it offers them specific characteristics of
lowest price based guarantee within which the enterprise managers claims that the individual, if
searches a flight ticket which have lowest fairs than of Air Canada within 24 hours of purchasing
tickets from websites then customers will be awarded with promotion code having value of $50
and reduction in prices (Kaynak and Kucukemiroglu, 1993). This has emerges as strong pricing
strategy which defines faith of organisation for offering tickets at reasonable prices. It also offers
basic Economy price class that is cheaper than from regular Economy class.
Place: The headquarters of Air Canada are at Montreal, Quebec. The primary hubs of the
firm are situated at Montreal, Vancover, Calgary along with Toronto. In addition, the flights of
entity flies to more than 180 destinations around 6 continents.
Promotion: Business concern such as Air Canada has developed its own online customer
community through utilising social media platform in which they customers are linked with apps
which has improves its usage. Other than this, the well popular promotional strategy of the entity
are its “Hashtag campaign”, “You and I meant to fly” and “Hello/Goodbye”.
People: For all the strategies that are unfolded by Air Canada, the primary objective is
keeping satisfaction at high level for all its people. The entity has gained significant position
within Canada's Top 100 superiors as well as Montreal's Top Employers. Through staff staff
members feedbacks, company designs addition to final décor for keeping satisfaction of its
people at high level. The internal people contacts with external one on regular basis. In addition,
the tag line of “Flight Path” shows huge commitment together with professionalism of its people.
Physical Evidence: In past years, Air Canada was having light blue colour that they have
changed with black and white along with red Maple Leaf Accent as well as black belly. All this
reflects contrasting seasons, wildlife and heritage of Canada. In addition, rebranding was done to
make staff members feel confident addition to positive for the brand with which they are
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connected. Through this up-gradation, huge customer base are attracted for taking flights of Air
Canada.
Process: The process of Air Canada are streamlined for staff members and customers.
The process to book flight is easy and convenient as customers makes bookings by using online
addition to web apps which ensures delights among end to end clients and in-flight experiences
(Kumar and Sharma, 2015). Air Canada have efficient together with timely deliverables for all
departments including accounts and management, ground crew, booking department and many
more. The marketing mix element majorly focuses on offering high customer satisfaction.
STP:
The another marketing strategy that is related to segmenting, targeting and positioning
which demonstrates linkage among entire market and the ways entity chooses for compete in
segmenting market (Messner, 2017). By using the principle, Air Canada marketers divides whole
market into smaller homogeneous groups having similar characteristics. Following are the
approaches of STP of Air Canada:
Segmentation: Herein, entire market is splitted into smaller groups possessing
identifiable characteristics along with similar product needs so to select suitable target market.
The marketers team of Air Canada have segmented the market into following dimensions:
Demographics: On the basis of variable including income group, education level,
population age, occupation and family status. In context to Air Canada, it segments the market
into distinct sub groups such as income level, family status and occupation of population in
which all aspects are considered by managers.
Geographic: Herein, market audiences of Air Canada are splitted as per their locations.
Geographic segmentation is done as per customer location including City, Continent, District,
Country and region.
Psychographic: As per the segmentation type, market audiences are separated as per
their personality. In this regards, Air Canada has segmenting the market as per lifestyles,
interests, values addition to attitudes of air travellers.
Behavioural: Through behavioural segmentations, market people are divides as per their
previous behaviour for the brand. Awareness of business, usage level, rating of tickets, purchase
patterns, product knowledge and more purchases are some kinds of behavioural segmentations
done by Air Canada.
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Targeting: Institutional proactive selection of appropriate market segment so to emphasis
on offers together with activities for related consumer base is termed to targeting. Air Canada
managers majorly focuses on targeting population having age group between 18 years to 68
years, high usage level, have diverse knowledge about tickets and routes, high and medium
status and purchases tickets at more time.
Positioning: It is described as final element of STP processes in which entities emphasis
about the ways the audiences views the commodities as compared with rivals so that competitive
advantages are meet (Rowley, 2017). Marketers of Air Canada have planned various strategies
so to position the flight tickets or other services through social media platform and its
advertisement campaigns.
TASK 2
Explanation of relationships of marketing with other departments of the company.
Covered in mini poster
CONCLUSION and RECOMMENDATION
The above report concludes that airline industry is majorly influenced by various changes
that arises in external environment. Business concern applies distinct concepts or terminology in
context to marketing their products as it has philosophical addition to strategic value that help in
directing overall efforts for attaining wider goals. By successfully implementing product
strategy, promotion strategy and branding, all the objectives were accomplished by entity in
ethical ways. Company uses marketing concepts such as STP approach and 7Ps of marketing
mix within their daily operations.
In order to improve the effectiveness for applying concepts and programmes, it is
recommended to opt effective marketing strategy through which more customers are attracted
and profits are maximised. Other then this, it is also recommended to managers of selected
airline company to perform activities by framing plans and suitable programs related to tactical
marketing and web analytics for building healthy relations wide diverse located consumers. The
entity should also follow strategic intents and provide Chip card service to its customers that will
help them in improving effectiveness within applying framed strategies of product and branding.
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REFERENCES
Books and Journals:
Baker, M. J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Benzo, R., Mohsen, M. G. and Fourali, C., 2017. Marketing research: planning, process,
practice. Sage.
Bush, T., Bell, L. and Middlewood, D. eds., 2019. Principles of Educational Leadership &
Management. SAGE Publications Limited.
Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.
Dennison, W. F. and Shenton, K., 2018. Challenges in educational management: Principles into
practice. Routledge.
Folinas, D. and Fotiadis, T., 2017. Marketing and Supply Chain Management: A Systemic
Approach. Routledge.
Kaynak, E. and Kucukemiroglu, O., 1993. Successful marketing for survival: The airline
industry. Management Decision, 31(5), pp. 32.
Kumar, R. and Sharma, V., 2015. Auditing: Principles and practice. PHI Learning Pvt. Ltd..
Messner, W., 2017. Does Value for Money Create Advocates? A Study in the International
Airline Services Industry. Journal of Global Marketing. 30(5), pp.309-321.
Oswald, L. R. and Oswald, L., 2015. Creating value: the theory and practice of marketing
semiotics research. Oxford University Press, USA.
Rowley, J. E., 2017. Information marketing. Routledge.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Worth, M. J., 2018. Nonprofit management: Principles and practice. Sage Publications.
Online:
Branding strategy of Air Canada. 2020. [Online]. Available through:
<https://skift.com/2017/02/13/whats-behind-air-canadas-new-look-and-new-branding/>
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