British Airways Marketing Strategy Analysis

The assignment delves into the marketing strategies employed by British Airways. It examines the company's use of the STP (Segmentation, Targeting, Positioning) framework to identify its target audience and tailor its offerings accordingly. Further analysis includes a breakdown of the distinct media channels utilized for promoting British Airways' services. The importance of strategic planning within the service industry is also highlighted, emphasizing its crucial role in the success of businesses like British Airways.

Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concepts of marketing for Airline industry......................................................................1
1.2 Impact of the marketing environment on Airline industry...............................................2
1.3 Measure the relevance of consumer markets in Airline industry.....................................3
1.4 Discuss the rationale for developing market segments....................................................4
TASK 2............................................................................................................................................5
2.1 Value of marketing mix to service industry.....................................................................5
2.2 Pricing strategies and policies in relation to Airline industry..........................................5
TASK 3............................................................................................................................................6
3.1 Evaluate the role of the promotional mix.........................................................................6
3.2 Planning advertising campaign for Airline industry........................................................6
3.3 Role of sales promotion and public relations...................................................................7
TASK 4............................................................................................................................................7
4.1 Market research to services industry operations..............................................................7
4.2 Market research for an appropriate product.....................................................................8
4.3 Examine the suitability of different media.......................................................................8
4.4 Implementation of the marketing plan.............................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is an important element as it helps in attaining success to the service industry
in relations to British Airways. Managers should conduct a market research to know about
different type of strategies that can be applied in the service industry. The main purpose of
hospitality marketing is to know about the needs and wants of the customers and for increasing
their market shares by reaching more number of customers (Bassnett, 2014). As the economy is
growing and constantly changing, there existed a need for the hospitality organisations to adjust
with the changes that are related with the changing lifestyle and preferences of the customers.
This report contains the study about different concepts of marketing in relation to the service
industry and a vital role and use of marketing mix in it.
TASK 1
1.1 Concepts of marketing for Airline industry
Marketing in British Airways plays a vital role as it help managers to fulfil various needs
of the customers by having a look on their demands. The products and services that are related
with airline industry involves dining services along with other need base requirements while
travelling to one destination to other (Butcher, 2016). Retention of customers in the organisation
also plays an important role as it in increases the efficiency and growth of the company. This is
for instance to state about the marketing activities of British Airways with a foremost target of
retaining customers. Also, there exist various concepts of marketing, as stated below-
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 Product concept- In accordance to the marketing theories of Theodore Levitt, there
should be some effective changes in the products according to the recent market trends.
This concept has been used by many airline services including British Airways so as to
increase their profits and achieve growth.
 Selling concept- This concept clearly specifies the strength of selling goods to the
customers by aggressively promoting it (SRIVASTAVA, 2011).
 Marketing concept- This clarifies the concept of satisfying the exact requirements of the
customers by clearly ascertaining the needs to be fulfilled first.
 Societal concept- This is referred to be a unique concept in which the organisations like
British Airways should focus upon fulfilling the desires of the consumers in the long run
to continually meet their undertaken goals and objectives.
1.2 Impact of the marketing environment on Airline industry
Marketing environment of British Airways relates to internal and external environment in
which the business operates its activities. Marketers should consider both the environment so as
to know the market in which the products and services are to be sold. However, internal analysis
must be carried out first to know the current state of the organisation. Considering the same,
below are the factors of internal analysis-
 Customers- The purchasing power have diminished and thus they have to construct their
string section, even if the levels of disposable income have been maintained which is a
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result of interest rates (Hair, and Lukas, 2014). Recession have crashed the growth rates
of Airline industry.
 Contenders- There exists many competitors of British Airways such as Virgin Atlantic,
Jet Airways and Emirates, etc., where being into a similar industry, they all are offering
almost similar number of goods and services to the customers. It is therefore important
for British Airways to undertake some distinct strategies and schemes for their customers
and differently propose their facilities.
Correspondingly, there together exists macro environmental factors concerning the
external surrounding of organisations like British Airways, that are as discussed below-
 Economic- When there is recession in the economy in this situation customers will not
spend money on holiday planning, vacations and travelling to different places. Holidays
are viewed as luxury times and thus customers change their mind set to plan for domestic
holiday. Persons who are involved in business activities choose to get accommodation for
lower prices for their business plans.
1.3 Measure the relevance of consumer markets in Airline industry.
Customers are the major part of Airline industry as they determine the prosperity of the
organisations operating in it. Consumer cultures are a part of Airline industry and thus impacts
upon the social and psychological impact of purchasing and spending behaviour of customers.
Behaviour of customers in Airline industry is an outcome of factors that are related with personal
influences and forces which operates in the external environment. The patterns of consumers in
Airline industry is the consideration of different type of stimuli used in service industry
(SRIVASTAVA, 2011).
According to different authors, trade-off between competitors and consumers helps in the
achievement of desired outcomes. Airline industries are achieving an equilibrium between the
two so as to achieve the best results. Value chain also helps in maintaining long term relations
with customers and this helps in increasing their shares. The same strategy has been applied by
British Airways to retain their customers. Value chain helps in delivering good values to
customers at a lower cost in the form of good seating facility, internet connections and good
dining facility.
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1.4 Discuss the rationale for developing market segments
Successful companies create value for their customers by offering them affordable
products and services at a reasonable price range that are inexpensive for the customers in terms
of buying.
Segmentation: It helps in dividing the markets according to different locations, age,
gender according to which the products can be made available depending on the needs of
customers (Hartley and Claycomb, 2013). It helps in grouping the similar type of customers
according to their needs and characteristics. Segmentation helps in implementing the strategies
that can satisfy the needs of similar groups.
 It helps in generating profit for business as customers have different incomes which they
have to spend. This reflects their concerns for different prices of the products. Market
segmentation thus helps in rising average prices for the industry and enhancing the
profits.
 Segmentation helps in building better growth opportunities as the needs and wants of the
customers according to specific groups are already recognised (Huotari and Hamari,
2012).
 It helps in retaining the customers for a longer time period in the organisation as the
customers will be satisfied with the products and services that are provided by British
Airways.
 It also helps in gaining market shares by maximising the ratio of the profits in the service
industry.
Segmentation is further linked with other related strategies of targeting and positioning where
British Airways is known to follow multi- segment strategy for a concentrated marketing of its
goods and services. This chosen strategy of segmentation undertaken by British Airways has
configured the division of population into various groups considering their distinct set of
characteristics. Considering the same, it offers four different packages to distinct segments of
customers. It further links to its targeting strategy, under which, the cited firm has referred to
select specific groups ascertained above in the tactic of segmentation for selling products.
Undertaking this measure, British Airways has targeted to provision 4 different levels of services
namely- economy, executive, premium and first class. Lastly, after a successful implementation
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of segmentation and targeting, the quoted entity has also positioned the targeted segment of
consumers by choosing some best suitable measures for the same.
TASK 2
2.1 Value of marketing mix to service industry
Marketing mix is an added assistance to the marketers who are responsible to frame
effective strategies of marketing. Below are the 4P’s of marketing-
Product- The products that are related to British Airways are highly perishable. Marketers
should give a thought to use the elements of marketing mix which for fulfilling the demands of
the customers in different ways. While manufacturing the products, the companies like British
Airways must focus on a unique selling point while offering it to their consumers.
Place- It is referred to the locations from where the services can be offered to the customers and
thus helping the customers to understand the importance of communications channels. The
service should be delivered to customers at right place and right time so as to ensure satisfaction
of customers (Jobber and Ellis-Chadwick 2012).
Pricing- The pricing strategy of British Airways indicates premium to mid-range pricing of
goods where all these are offered within a superior quality. With which, it is known to contend
others to a great extent. Many hotels in UK including British Airways have adopted online
services for their customers so as to provide convenience to customers and thus helps in better
management of services that are related to logistics. Up-gradation in technologies have also
played a vital role in implementing changes in hospitality services.
Promotion- Different new methods have been developed in the form of channels that are
running with the help of internet and franchising which allow for online ticket reservations
without the development of intermediaries. Ethical issues in relation to powers which are used by
the channel members.
2.2 Pricing strategies and policies in relation to Airline industry.
Pricing theory depicts that prices can be according to the cost or demand in the economy.
These elements are helpful in determining the final prices to achieve the industrial objectives like
greater market shares in comparison to the contenders. British Airways have used various pricing
policies that are related to consumers demands and various strategies relating with the pertaining
level of competition in the market (Smith and Zook, 2011). Pricing policies that are adopted by
the airline industries are based on the demand and supply prevailing in the industry that helps in
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increasing or decreasing the existing prices. British Airways adopt prices superior than their
competitors in order to maintain a competitive pricing policy in relation to the economic demand
and supply in the market. It however necessitates them to undertake a premium pricing policy
with superior quality of goods and services proposed to the customers. Fluctuations in season
and increase in competition with larger number of consumers will also lead to a tactical
judgement of pricing adopted by the stated enterprise.
TASK 3
3.1 Evaluate the role of the promotional mix
Promotional mix plays a vital role in Airline industry which involves efforts to sell the
products from business to final customers. It is specially focussed on the strategies undertaken
for the promotion of goods and services where promotional mix mainly consists of advertising,
personal selling and sales promotion, etc. Various strategies have been designed by British
Airways as a part of promotional mix (What is Marketing?, 2017). Innovation of new dishes so
as to evolve with new ideas and this helps in increasing the revenues and achieve growth. British
Airways have used online strategies as a promotional tool and advertisement policies to
successfully promote the industry at a greater level of success. Out of the four main aspects of
promotional mix, British Airways is known to use the tactic of Sales promotion in which various
effective activities are undertaken by them like offering coupons at discounted rates to the
customers so as to attract them in greater numbers. Beside this, one of their well-known
promotional strategy is termed as British Airways escape tickets that is mostly offered at the time
of Christmas and other festive seasons.
3.2 Planning advertising campaign for Airline industry
Planning plays an essential role in Airline industry. Advertisement policies that are
adopted by the organisations also helps in promoting their entire business. Planning activities
that are related with provisioning services to customers aptly satisfy their realistic needs. It is on
considering the requirement of planning an advertising campaigns for British Airways. This
simply means to reward incentives to the loyal set of customers to make them feel motivated and
refer the same to their friends and relatives (Tucker, 2013).
In this modern age people are using internet for booking airline tickets. Considering the
same, adopting some effective measures for selling more number of tickets will together lead to
create a good image of the company for increasing their sales. A sensational social media
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campaigning has been launched by British Airways onto some of their incorporated social media
sites where they have launched a video featuring a New York trip of a father and a son. The main
motive of this campaign was to capture the attention of large number of audiences and show the
importance of holidays to them. Also, they have tried to display their own expression of
understanding such unforgettable moments of customers while experiencing a memorable trip
with friends and family, etc.
3.3 Role of sales promotion and public relations
Promotions help in increasing profits with the help of different promotional activities that
are organised to build sales of the companies like British Airways. PR activities are considered
as an economic medium to attract large number of customers towards the products and services
offered by them (Wilson, Bitner and Gremler,2012). PR also helps in building good images for
satisfying the exact needs and wants of the customers. There are various roles that are played by
sales promotion and public relations that are together considered to be the two most important
part of promotional activities in British Airways and are as follows:
Brand Awareness: Awareness can be created with the help of promotional tools such as
television, internet, radio and magazines etc. People tends to get more ideas about the brand if
they frequently watch the advertisements.
Information: Promotions tools are also used to provide a relevant set of information
about the company to create awareness in the mind of individuals where they will be mainly
informed about the services offered by the Airline industry. This helps in acknowledging the
prospective clients at every stage of buying and is mostly done with the help of distributing
brochures and pamphlets, etc.
TASK 4
4.1 Market research to services industry operations
Planned market research plays an important role in determining the services that are
offered by the competitive firms. It helps to generate newer set of ideas for providing innovative
services to the consumers by offering new services to them. This is usually done in the Airline
industry by making an effective use of marketing information which plays a significant role in
determining the prices within which the products and services will be offered to the consumers.
It is mainly used to forecast the current demands prevailing in the market. Market research helps
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in providing better services to customers where the marketers can easily understand the current
market demands and make accordant changes in their existing services (Lovelock, 2011).
Market research together helps in collecting and interpreting data where the marketing
information system comprises with assessing the required information, assembling marketing
intelligence and developing marketing information. Furthermore, there together exists various
sources of marketing information such as internal data, Guest information trends and guest
history information along with the data about mystery shoppers, company records, POS
information and comment cards, etc. With the help of these internal and external resources, an
effective marketing research can be carried out to identify and define customer’s requirement,
monitor and assess the same by lastly communicating it to the targeted audience and get effective
outcomes at the end.
4.2 Market research for an appropriate product
Market research is conducted so as to gather the responses of the customers towards the
services that are being offered by British Airways. There exists two main type of researches
namely primary and secondary research as referred below-
 Primary research- This technique can be applied on the consumers who are availing the
services of British Airways with the help of surveys conducted by designing
questionaries’ to know their perception about the services provisioned by the organisation
(Huotari and Hamari, 2012). It indicates a two-way communication among the enterprise
and its consumers in the form of feedback by enabling the concerned authorise of British
Airways to undertake effective practices for serving the clients and resolve any persisting
issues.
 Secondary research- This can be conducted with the help of the articles published in the
newspapers, books, magazines and journals, considering their authenticity. Data
published in the aforesaid documents can be referred as previously conducted studies to
further assist British Airways to design appropriate services for the users.
4.3 Examine the suitability of different media
Different forms of media are being used by British Airways to achieve desired level of
outcomes in their marketing plans. Advertisements are given in television, radio, newspaper,
books, magazines and journals, etc. Other visual sources such as billboards, leaflet, posters and
hoardings are together being used by the cited company as a way of interacting with its targeted
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set of audiences. However, the use of media by British Airways tends to differ from the products
and services offered by different industry and the factors that are related to market consideration
(Huber, 2011). This is for instance to state about a case where if British Airways wants to convey
a message to its audience, then it will have to reach the audience with the help of internet that is
used by people all around the globe. It is basically to make an effective use of common social
media tools and techniques to grab the attention of a large set of customers for an increasing sale.
If the industry wants to propose any new products and services, then launching it on the internet
is the best possible way to attract greater number of audience towards it.
4.4 Implementation of the marketing plan
Marketing plan helps in planning the activities that are beneficial for the growth of the
company and where British Airways can refer to make changes in accordance to the recent
trends in the market.
Developing plans- These are also known as blueprint that is designed to prepare the sales
strategies for the company to enhance the sales and profit levels.
Implementing the undertaken strategies- Return on investment is a major concern for service
industry. The major objective is to see that the money which was invested in the business has
resulted in profits or not (Smith and Zook, 2011).
Assessing the contribution of the undertaken strategies- Feedback from customers is an
essential outlook where it helps in determining the weak areas where the company is currently
not able to achieve success.
Refining the plan- The response of the contenders also helps in determining the success and
failures of the prepared business plans that are implemented by British Airways.
CONCLUSION
From the above report, it can be concluded that marketing tools and techniques plays an
important role in creating awareness about the products and the services in the consumers that
are specially offered by the company. Serving customers in service oriented businesses like
British Airways is of utmost importance where it determines the growth and success of the
overall industry. The promotional strategies that are adopted by British Airways for promoting
their services all around the globe has been evaluated in this report. Also, the pricing strategy
adopted by British Airways is together determined over here with a prominent use of some
competent marketing theories like marketing mix. This has been done by considering the STP
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strategy of British Airways where it has in turn specified its other relative measures. Distinct set
of media that are used for promoting the services of British Airways is together been determined
over here by lastly defining the importance of planning in service industry.
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