Low-Cost Airlines and Their Impact

This assignment delves into the rise and impact of low-cost airlines. It requires a comparative analysis of these carriers against traditional airlines, examining financial performance, network strategies, consumer behavior, and the overall influence on the aviation industry. The task emphasizes understanding the business models, competitive advantages, and challenges faced by both types of airlines.

Running Head: Marketing Management
Marketing Management

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Contents
Introduction.................................................................................................................................................1
Marketing Mix.............................................................................................................................................1
Marketing Strategy......................................................................................................................................4
Competitive Analysis...................................................................................................................................4
Contemporary Issues faced by organization................................................................................................5
Recommendation........................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

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Introduction
The purpose of this task is to provide a brief about the activities of the company Emirates. The
Emirates Airlines is an organization which was originated in the year 1985. The airline is a
subsidiary of The Emirates Group which is wholly owned by the government of Dubai. The
company is the largest airlines of middle-east Asia which operates 3600 flights per week from its
Dubai international airport to 140 cities or more in 81 countries and six continents. Further it
shall also be noted that the company has attained fourth position in world’s largest airlines.
Activities of Emirates are divided into two sectors that are Emirates SkyCargo and Emirates
Executive. SkyCargo is an air freight division of the company which was originated in the year
1985 and executive was originated in the year 2013 by the company to provide assistance of
corporate and private charters (Emirates, 2018).
Further, the below mentioned report talks about the marketing mix of the company Emirates.
Marketing mix refers to the combination of factors which tells about the attribute of the
company. This tool is helps organizations in pursuing their marketing objective. The task
explains 8p’s that are product, price, place, promotion, physical evidence, people, distribution
and partnership. Furthermore, it explains the competitive analysis of the company and
contemporary issues faced by the management. More details about the task are discussed below:
Marketing Mix
The marketing mix of Emirates airline is discussed below:
Product
The company has a mixed fleet of products in their portfolio like Airbus corporate charter and
Boeing wide body aircrafts. In order to gain competitiveness the company always remains
competent and innovative with its products and services provided in the market. The products of
Emirates include excellent and consistent services which paved the way for the company to
rapidly grow in the international as well as domestic market. The company provide both personal
and profession approach towards their customers so as to increase the level of satisfaction
(Farouk, Cherian, & Shaaban, 2017).
The company is the first one to supply personalized videos, shower facilities and private suite in
their aircrafts. This activity of the company helped them to gain acceptance in the whole market.
Further the services are provided as first class, business class and economic class services.
Further it shall be noted that apart from providing airlines services the company also provides
better housing and healthcare facilities to its employees so as to keep them happy and satisfied
(Beik, & Galbraith,2016).
Price

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As Dubai is a link between the east and the west part of the world, so that the company gains the
advantage to serve more services at low cost in the market. Emirates serve low cost tickets in the
market, if compared to other airlines companies. The company uses shortest available routes and
offer direct flight services to its customers so as to eliminate the increment in the cost on tickets.
Further, due to direct flights in many destinations the company enjoys the advantage of effective
pricing policy in the market. With this policy the customers also save their income which
increases their satisfaction level towards the company (Mumtaz, 2017).
Emirates also hire people at low cost which automatically reduces the fare charges and low
pricing strategy. The company also uses the dynamic pricing strategy to manage the seat capacity
on the airplanes so as to get highest available price to every seat which they sell. This results in
flexible pricing of the seats.
Place
Being headquartered in Dubai, the organization manages all its operations from Dubai airport
itself. Further Emirates operates around 3500 flights averagely in a week and the network of the
company is spread through six continents and eighty one countries and one hundred and forty
cities in total. Further the company is indulged in providing non-stop commercial flight services
via long routes like Dubai to Dallas, Los Angles, Houston and San Francisco (Shaw, 2016).
Emirates also use strategic hub locations to gain the top most position of global transporter in the
external market. This activity also helps the company to maximize their benefits as well. The
airlines believe is providing direct flights to the customers to increase their level of satisfaction.
Distribution strategy is use by the company to allocate and distribute tickets through travel
agents and tour operators present in different parts of the market. The company also provides
various services through its official website (Coleman, 2015).
Promotion
The organization launched a promotional campaign for the airline to become more competent in
the target market. ‘Fly Emirates. Keep Discovering’ is the slogan of the company, and the vision
of the company is to build and maintain a position among the global leaders of the airline
industry. Considering to that, the company developed above par performance by taking
calculative risks and adequately using all the available resources. The company develops
marketing tactics to attract more and more customers in the market. Special discounts and
package travel tickets etc. are offered to the customers in the market (Charter, 2017).
Further the company also launched special but limited packages for children in their promotional
plan. Under this package the parents were allowed to travel with two kids of less than sixteen
ages; and the cost of accommodation, travel and food would be free for the kids (O'Connell, &
Bueno, 2016). This campaign was named as ‘The Kids Go Free’.

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Physical Evidence
The company Emirates mainly focuses on providing quality services to its customers and
provides a pleasant experience while travelling. The company has a dedicated terminal in Dubai
which includes the state of art and culture for the comfortability of people. As discussed above,
the organization is the first one to provide shower facility, personalized videos etc. in their flight
which provide a good ambience to the passengers (Min, & Joo, 2016).
The airlines have new fleets that are highly equipped with entertainment facilities for its
customers. The stylish office buildings, lounges at airport add an additional feature to the fame
of the company. A passenger while travelling with an airline wants to travel safely and properly
reach their destination. So, the cabin crew of Emirates gains the trust of the customers so that
they do not hesitate to communicate their problem on board. So, inn this way the physical
evidences helps the organization to increase the satisfaction of customers of the company
(Emirates, 2018).
People
The company has 64,768 people in total working with them who are working in the organization
with a motive to increase the satisfaction level of the customers. Apart from the customers of the
company, the management also aims to satisfy the employees in the market as well. The
company has a huge family of employees working with them who belongs to different parts of
the world. The management adequately takes care of the cross culture activities so that no
person’s interest is harmed with their actions. Concerning to interest of the employees, the
company also provides bonus to them so as to keep them happy (Emirates, 2018).
Talking about the customers, the company carries more than 50 million people with them. So,
the organization needs to take care of the requirements of the customers. The employees of the
company are 24* 7 available for the customers (Redpath, O'Connell, & Warnock-Smith, 2017).
Distribution
Distribution process includes the distribution of products and services offered by the company.
The backbone of the company is its services provided in the market. The management of the
company constantly aims to provide maximum optimization of their services to the customers in
the market. The organization provides first class lounges, special and additional services,
customer relation management services in the environment. All such activities are streamlined on
end to end process so that the customer can attain services according to their requirements
(Kotler, 2015).
The cabin crew of the company distributes quality services to the customers with utmost priority.
The company is also known for their welcoming nature and being placed in an airlines company
it is important for Emirates to welcome all guest with the cultural heritage so as to increase the

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sales transaction of the company. Lastly, the website provided by the company helps the
company acknowledge themselves with all services provided by the company in the market. The
customer can also tell their issues to the company online. The management is 24*7 available to
solve the issues of the customers (Wensveen, 2016).
Partnership
Partnership is initiated by the organization so as to improve their strengths in the market. With
respect to that, the company Emirates has partnered with various organizations of same industry
to become competent in the target market. Like, Emirates partnered with Qantas to provide
services in western parts of the world. This alliance helped the company to reach in those parts of
the world where it was impossible for them to reach alone. Further it also helped the company to
gain more international customer base in the market. The joint venture collectively helped both
the companies to earn good amount of profits in the market. Emirates Skywards has also
partnered with various organizations to achieve success in the target market (Holland, Jacobs, &
Klein, 2015).
Marketing Strategy
The organization has segmented the market in two basic categories that are, profitable and
unprofitable sector. The profitable sector is the business traveller and unprofitable sector is one
economic class services provided by the company. The business class passengers of the company
give the highest profit to them. Further the company targets the customers who aim to get luxury
services in the market. People between the age group of 30-60 are targeted by the company in the
market. Emirates Company is positioned at a premium place in the market. The company is
known for providing good and innovative services in the market (Piltz, Voltes-Dorta, & Suau-
Sanchez, 2018).
Competitive Analysis
The company Emirates initiated various strategies in order to stand high in front of its
competitors in the target market. Strategies like cost containment, customer focused etc. were
initiated by the organization in the market. Further it shall be noted that the aviation industry has
high degree of competition and the competition which the company Emirates faced in the market
is discussed below:
Etihad and Lufthansa are the major competitors of the company in the market. Further the
information about both the companies is discussed below:
Etihad Airways
Etihad Airways was established in the year 2003 as national airlines of UAE in the market. The
company has combined its partnered with many organizations in the market some of them are,

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Aer Lingus, Virgin Australia, Air Seychelles, and Air Berlin etc. The company is second largest
airlines of the UAE after Emirates. So, it shall be noted that Emirates is bigger than Etihad in
terms of growth and market share in international environment (Etihad, 2018).
Lufthansa
The European airlines industry is dynamic and has competition among various companies as
well. Deutsche Lufthansa AG was originated in the year 1926 and then re-originated in year
1954. The company is a flag carrier of Germany and is the largest airline of Europe in terms of
overall passengers carried as well. Also in international context, the company comes on the fifth
position in terms of passenger base. The company serves in 18 domestic, 183 international and
78 countries across 4 continents. Further along with its partners, the company serves in total 410
destinations worldwide.
Further comparing both the companies, it shall be noted that Emirates is a fast growing
organization and Lufthansa is used to match up to the activities of the company. The company is
behind Emirates in terms of revenue and operating profit. Thus, it shall be noted that Emirates
Airways is working excellently in its field and is adequately satisfying the requirements of the
customers as well. Resulting to which, the company is being placed on the most position in
aviation industry of UAE and has more customer base than its competitors. The organization
gains the opportunity to penetrate the market growth by expanding its activities in various parts
of the world and diversifying their business by partnering with various organizations (Yin,
Dargusch, & Halog, 2015).
Contemporary Issues faced by organization
As the company has gained the title of world’s longest airline route in the market due to which
the organization faced challenges to survive in the market. The contemporary issues faced by
Emirates are listed below:
 Competition: competition is one of the biggest challenges for the company as there is
presence of many rivals for the company in the airlines industry. As discussed above the
company has many competitors present in the market. But it shall also be noted that
Emirates is prevailing on the highest position in the target market. Competition is one
aspect which is constantly present with the company; resulting to which it acts a pressure
on the organization to work efficiently otherwise the competitors will overtake them in
path of success. Further it shall also be noted that the company needs to spend huge
amount of money to keep them competent in the market (Wang, & Hsu, 2016).
 Technology: Technology is an important issue for the organization. The aviation industry
keeps on fluctuating and there is constant introduction in innovative technology due to
which many times the organization face problem in keep them intact with the
technological upgradation. It takes time for the employees to understand the advanced

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technology and apply them in the activities of the organization; also there is risk for the
company while using new technology. If the employees do not correctly apply such
innovation then the customer might face problem in this case (Logothetis, & Miyoshi,
2016).
 Labor Unrest: The employees of the organization suffer the problem of unrest. As the
activities of the organization run 24*7 due to which the employees suffer. Many times the
pilots boycott due to which the company faces the crunch of employees resulting in
dissatisfaction of the customers in the market. The cabin crew employees walk out from
the company because of pressure of the work (Tembleque-Vilalta, & Suau-Sanchez,
2016).
 Brand reputation: In order to maintain the reputation in the market, the company needs
to maintain the image formed in the market. As discussed above the company is
positioned at a premium place in the market due to which the customer gets attracted
towards the services of the company. So, in order to maintain that image, the needs to
hire efficient employees on a regular basis and invest in promotion etc. activities as well.
This cost high for the company (Fageda, Suau-Sanchez, & Mason, 2015).
 Fuel Prices: Fuel prices are one of the biggest concerns in the airlines industry as the
price keeps on fluctuating. The company cannot increase the prices of tickets in the
market otherwise it will dissatisfy them. Also they cannot bear the high price of fuel
themselves, so this acts as a major concern for the company.
Recommendation
The following recommendations can help the company to attain growth in the target market. The
details are discussed below:
 The company shall aim to reduce its operation cost investing in technology which gives
them monetary benefit in the market. The cost shall be controlled so as to improve the
activities of the organization effectively and efficiently. Reduction in cost will also
increase the profits of the company.
 The organization shall adequately take care of their pilot and other employees. The
management shall not pressurize them to work more and they should provide them good
workplace environment as well.
 Also the organization shall focus on providing low cost carrier services as well. As these
services are at a boom in the market due to which more customers prefer these low rates
services in the market. Companies like Easyjet provide low cost carrier services in the
market due to which more customers prefer such services.
 Further the organization shall diversify their business in different parts of the world. They
shall also initiate partnership with different companies of aviation industry so as to
increase their customer base as well. Further the company shall also adequately fulfill
their corporate social responsibilities in the market.

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Conclusion
Thus in the limelight of above mentioned events, it shall be noted that the company running
successfully in the target market. Emirates Company is regarded as best airlines company present
in UAE. The company offers premium airlines services, also the organization is known for
providing innovative technological services in the market. The company is a part of Emirates
group. Further the above mentioned task discusses about the marketing mix of the company
along with the information about its competitors and issues faced by them in the market. Thus,
report adequately justifies the requirements of the task.

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References
Beik, N., & Galbraith, J. (2016). Fan identification and the perception of the sponsor-team fit:
The case of Emirates Airlines and Arsenal FC.
Charter, M. (Ed.). (2017). Greener marketing: A responsible approach to business. Routledge.
Coleman, M. (2015). Regulatory Responses to the Challenges Facing Large European Carriers in
the New Global Market. The Air and Space Lawyer, 28(1), 1.
Emirates, (2018). About Us. Viewed on February 2, 2018 from <
https://www.emirates.com/in/english/about-us/>
Emirates, (2018). Environment. Viewed on February 2, 2018 from <
https://www.emirates.com/in/english/about-us/environment/>
Emirates, (2018). Leadership Team., Viewed on February 2, 2018 from <
https://www.emirates.com/in/english/about-us/leadership-team.aspx>
Etihad., (2018). Corporate Profile., Viewed on February 2, 2018 from <
https://www.etihad.com/en-in/about-us/corporate-profile/>
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