Marketing Principles and Practices : British Airways

Marketing Principles and Practices 1
Marketing Principles and Practices
Report

Marketing Principles and Practices 2
Table of Contents
1.0 Introduction............................................................................................................................................................................................................2
2.0 Key marketing concepts and terminology applicable to British Airways..............................................................................................................4
2.1 Branding British Airways...................................................................................................................................................................................4
2.2 British Airways Product Strategy.......................................................................................................................................................................5
2.3 British Airways Promotional Strategy................................................................................................................................................................7
3.0. Marketing strategies and programs that helped British Airways achieve their objectives...................................................................................9
3.1 Marketing Strategies and Objectives of British Airways...................................................................................................................................9
3.2 Ethical considerations -How British Airways achieve their objectives............................................................................................................10
4.0 7P’s used in British Airways daily organisational operations..............................................................................................................................11
4.1 STP used in British Airways daily organisational operations..........................................................................................................................13
5.0 Cross-functional relationship...............................................................................................................................................................................14
6.0 Conclusion / Recommendations...........................................................................................................................................................................15
7.0 References............................................................................................................................................................................................................17

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1.0 Introduction
Airline Industry, a global sector with various aircraft moving travellers, cargo articles and mail to the distinctive parts of the world, was founded
in 1903 by Wright brothers. According to Chanddler (2016), this invention of the first airplane was created from the two air travel steam-
powered, non-control gliders, initiated by two Frenchmen, clement Ader, and the Eole in 1783, 1809 and 1890. Their innovation competed for
the most important part in the military exploration during World War1.
In the 1960s the Government took control and turned the airline industry the first global business cargo. (Meril,2013). However, after
deregulation in 1978 the industry become complex and competitive, airlines started to choose individual routes and prices. As a result, many
strong brand loyalty airlines, such as British Airways emerged (Britishairways,2019).
In this report, it will address the vital advancing strategies utilized in British Aviation routes and the branding as a business affiliation. It will
moreover see at British Aviation routes programs run, how they are assembly the association objectives and their moral standing. Lastly, it will
consider the relationship between exhibiting and other trade capacities within the British Aviation routes. In completion, a few suggestions are
made on how to make strides any of the displaying strategies utilized.

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Figure 1: (Britishairways,2019)
British Airways is owned by International Airlines Group and is considered as one of the largest airlines in term of passengers carry and number
of fleets. Under the leadership of Willie Wash, the company is positioned as the premium airlines and largest international carrier at the global
platform. The company headquartered in the UK with its most of the operations in one of the busiest airports in the world that is Heathrow in
London.
2.0 Key marketing concepts and terminology applicable to British Airways
The concept of marketing starts with identifying needs and wants of customers and then focusing on business activities to fulfil their needs and
wants on timely manner (Kotler,2003).
In order to understand the concept of marketing principles and practices, analysis of British airways marketing activities is done. British Airways
offers services to its customers that include cargo services and flights to different destinations. Services are intangible that cannot be seen but felt
by the users, same with British Airways as the company offers experience, luxury and pleasure to its target customers that can only be felt not
collected or stocked.

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2.1 Branding British Airways
Branding
In the marketing activities, branding is considered as the important component in order to build the image of the company in the market and in
mind of customers. Branding is positioning of the brand that could be logo, name, symbol in the mind of people so that it helps customers to
distinguish the brand from other competitors. With the strong branding strategies the company can gain competitive advantage as it represents
consumer’s feelings and perceptions about a company’s performance and products (Shaw,2016).
British Airways branding strategies include focus of the company on the quality aspects as the company offers luxury and quality of services to
its target customers at different levels. British Airways has narrow scale of operations as the company mainly focus on its airline segment in the
existing market and not focus on expansion of its business. In the airline industry, other competitors such as Virgin airlines expanded and
positioned as a brand that focus on various segments such as insurance, radio station, financial services and record shops. Another competitor
EasyJet also expanded to different segments such as internet cafes, car rental, insurance services and financial services. Further, British Airways
branding includes six elements that helps the company in improving its brand image in the market (Britishairways,2019).
 British Airways focus mainly on providing safety to its customers with convenient and reliable airline experience.
 The company focus on enhancing the customer experience by offering them comfortable seats, fringe meals and beverages, and high
safety standards.
 British Airways reflects its brand in the market as high customer safety with reliability and excellence services.
 The company distinguish itself in airline industry by establishing as the brand that offers glamour for people and the concept of the right
time to all the class of customers. Due to that customers from each and every class feel like a valued person for the company and this
help the company to build strong network.

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 Further, organizational culture of the company reflects reliability, English culture and organization of resources (Mills,2017).
 The services of the company are affordable and suitable for all class of people whether business class, executives and students.
Figure 2: (Britishairways,2019)
2.2 British Airways Product Strategy
Product is the core element and an important consideration for the business. The organization can offer tangible and intangible products with
unique specifications, homogeneous or heterogeneous products and many more. Tangible products are those that can be seen and touched by
customers and attract customers with physical presence. On other side, intangible products are services that can only be felt and experienced by
customers.
British Airways offer intangible products to its customers that includes offering of flights and cargo services. Product development strategy is
used by the company to position itself in the market. British Airways services have high quality and high standard and in order to maintain this
company adopt for continuous product development strategy. The company improve its services by catering the needs to its different target
groups such as by analysing the expectations and needs for business class, economy class and first class customers. British Airways customize
its services as per the requirement of people such as the company offer unique lounges for first class group and an on board menu for wine and
food for economy class group.

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Further, in order to connect to its loyal customers the company offers silver, blue and gold cards to its loyal customers in that the company offer
standard services to its customers with free drinks and food on flights. Moreover, in flight magazines, movies, four radio channels, and
entertainment programs are also provided to its customers in order to maintain its standard quality.
British Airways has presence across 153 countries in the world and in order to sustain its existing market share the company uses services and
product strategies mainly promotion for long term growth and success. The company in order to sustain and grow owned many fleets such as
Boeing 787, 747 and 777 through that the company offers range of services in the airline industry. Along with that the company use latest
technology for offering advanced services to its customers for different classes such as business class, economy class and premium class.
Customization of services includes entertainment screens, additional spaces, cabins, beds, and meal course. The company’s services become
luxurious and sophisticated with continuous improvement. The product strategy is the main factor that contributes effectively in the success of
the organization in the market and to gain competitive advantage. Therefore, it is important for big players like British Airways to focus on
product development through continuous improvement.
Figure 3: Services offered by British Airways
Source:

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2.3 British Airways Promotional Strategy
Promotion strategies are used by the companies to establish its brand in the market and to make customers aware about new product and services
that the company offers. British Airways advertising and marketing strategies are described below:
In the airline industry, the competition is high and the companies in order to survive and grow need to use effective promotion strategy. In case
of British Airways, the company mainly promote its services through billboards, TV advertisements, and using print media such as business
class magazine and newspapers. With that the company used digital platform and has presence over all online portals and have its mobile
application and website for booking and taking feedback from the customers. The company also use publicity as a promotional tool as in 2012,
British Airways were partners for Olympic Games and London Paralympic. Further, the company in order to promote its services had brand
ambassadors such as Golfero8 Justin Rose and along with that the company sponsor various cultural and sports events across the globe. “ British
Airways has also promoted its brand through films like Planes”.
British Airways also use techniques such as discounts and additional offers during festive seasons. For instance, Christmas gift vouchers, escape
ticket offers that are applicable when the customer flies to 14 travel zones in that flat fare will be charged from £49 return on low fares to 135
destinations across Europe. On other side, the company offer free one way tickets to business class customers who upgrade to first class. British
Airways market share grows because of selling of tickets in advance through its discounts and vouchers. Such as the company offer discounted
and promotional tickets in December for following April.

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Figure 4: (Britishairways, 2019)

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3.0. Marketing strategies and programs that helped British Airways achieve their objectives.
British Airways marketing activities are focused towards five strategic goals. First is to offer well designed services and quality services to its
customers. For that British Airways focus on identifying customer needs and to deliver services to satisfy them profitably. In continuation with
that the product strategy of the company includes quality of flights, and customized flight services for different destinations. British Airways
offers business class, executive class, security, speed and support facilities for satisfying different needs of customers. As comparison to its
competitors the company provide better facilities such as allocated seats, drinks, meals, entertainment and on time flights. Further, the company
prove ad on services to its loyal customers who have silver, blue or gold cards. Customers who have gold and silver cards can access to
luxurious lounges in all the busiest airports or most used airports in that lounges customer can take experience of luxury stay, can relax, take
shower and can go to gym. Especially for business class people, the company offers services that eliminate loss of time and helps the customers
to utilize it.
3.1 Marketing Strategies and Objectives of British Airways
British Airways was founded in 1974 with the objective of administrating two airline corporations; British European Airways and British
International Airways. At present, British Airways is amongst the biggest airline company in the UK with assets of 273 fleets that cover 400
destinations. The company primary objective is to satisfy need of different customers by offering them services for economy class to business
class segment (Coller et.al,2016).

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Figure: 4 British Airways Past Records
Source:
British Airways in term of passengers carried is the second largest airline and the first one is EasyJet in the UK. The company is listed on the
FTSE 100 index and London stock exchange. Under the leadership of Spanish business man, Alex Cruz, British Airways become first airline
that generated $1 billion from single route in a year.
3.2 Ethical considerations -How British Airways achieve their objectives
British Airways vision is to be the sustainable and ethical airline and in order to achieve this; company started an initiative as “one destination”
that includes activities for reduction of carbon emissions, reducing waste, recycling waste, and minimizing noise and air pollution. British
Airways spend huge amount of its profits in corporate social responsibility activities. British Airways focus mainly on its core business such as
passengers carry and cargo. With that the company exceeded baggage targets and punctuality and achieved higher customer satisfaction score.
British Airways follows sustainable business strategy in order to build strong brand image and to adapt to the changing business environment.
British Airways has been investing continuously into the community development programme and invest in using resources that save energy and
fuel and ensure sustainable business. Global British Airways ensures that services they offer satisfy needs of customers across the globe and

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premium British Airways ensures that all customers get unique services and products whenever they require at affordable prices
(Britishairwayscsr,2019).
Figure 6: BA Corporate Responsibility
4.0 7P’s used in British Airways daily organisational operations
Marketing mix includes 7Ps of marketing that are product, place, price, promotion, process, people and physical evidence. British Airways
marketing mix is explained below that the company use in order to target its customer. According to Dudovskiy, 2016, it is important for the
organizations to focus on marketing mix. In 2015, British Airways took decision to separate its marketing department and restructured its
organization in order to focus on its commercial operations (Ghosh,2015).

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Price: British Airways offers affordable prices to its different class of customers, the main objective of the company is to offer reasonable value
of its tickets so that all customers can afford it. The prices that the company offers for its business, economy and premium class is less than
other competitors in the industry and this give the competitive advantage to British Airways. Thus, the company offers differentiating pricing
strategy. British Airways offers coupons, discount and festive offers for its loyal customers. The other factors such as changing fuel prices
impact on operations and final price of the tickets (Pels et.al,2017).
Places: British Airways cover 400 destinations with its 273 aircraft that includes Boeing 777, 787 and 747. British Airways established in
Waterside in the UK, and 40% of its operations take place at Heathrow airport. Further, the company also tied up with various airports
authorities to expand its business. British Airways offer its services through websites, mobile application and travel agents. All the services are
available at the company’s website that is from departure/arrival timings to all the features or specifications.
People: Human resources are the important asset for the organization as mainly in service industry. The person who leads British Airways is
Alex Cruz; he is the head of domestic and international operations and the organization structure includes strategies, marketing, finance,
engineering, sales and customer units. The operations teams consist of flight operations, engineering executives, communications, and customer
management and support. British Airways has 50,000 plus employees from that 3,900 are pilots and 16,500 cabin crew and 5000 engineers.
The company focus on hiring and selection of employees in a strict manner. British Airways take simulations and tests for selection of pilots and
the cabin crew member’s recruitment is done from top hospitality institutes and further training and induction programs are organized by the
company. British Airways also offers opportunities for graduates and has more than 145 places for apprentices every year.
Processes: British Airways used e ticketin4g process for efficiency and smoothness in its operations. Due to that the time taken for booking
tickets reduced by one minute than normal time. The company offers different tour packages at present the company has nine types of packages.
Further, cargo services are also provided by British Airways that services includes transport of pets, perishable goods, scheduled services and

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funerals. The process of British Airways starts from online booking of tickets to getting luggage back, whole process is automated and highly
efficient in order to reduce waiting time of customers.
Physical Evidence: British Airways always focus on providing greater experience to its target customers. The service industry mainly gets
success when the customer perceive brand in the positive manner and gain positive experience e from it. “This is the intangible aspect of the
business; hence it is the way the service is being offered”. Physical evidence includes how the customers get experience by use of services or
products such as luxury that lounges offer to customers, behaviour and service of flight attendants, cabin design, flight interior, colours and
symbols. This completes the British Airways marketing mix (Douglas and Tan,2017).
4.1 STP used in British Airways daily organisational operations
Segmentation, Targeting, Positioning (STP)
BA segmentation is focused on Business people, Education, Students with age demographics.
The segmentation enables BA to target these groups by offering promotion tickets and safe flights to different destinations. However, BA
positioning is about safety and reliability compared to its competitors in the airline industry. They remain one of the top airline industries in the
UK and in the world, their positioning has boosted its very promising market share.

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5.0 Cross-functional relationship
The
communicati
on team
CEO
Customer & operations
Executive team
The
operations
team
The flight
operations team
The engineering
Exec. team
The customer
management
team
Director of
Sales &
Marketing
Director of
Engineering
Finance &
performance
Strategy &
business
unit
Sales &
Marketing
EngineeringCustomer
Legal, Government. , &
industry affairs Dept.
Other Department
Director of strategy
& Unit
People &
organisational
Effectiveness
Investments
Customer
director
Director of
finance &
performance
Director of
PP & Org.
Eff
Safety & security Dept.
Manager
The management Board
Senior manager

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Cross functional relationship includes the whole organization structure of British Airways;
the CEO is the top level executive after that customer and operations executive team, senior
manager and management. All the departments have cross connection and interlinked in
order to take decisions. In customer and operations team there are wide range of functions
and roles in the UK and across the world. British Airways operation team have incredible
range of talent that includes innovators, top notch designers, leaders and digital strategist.
Project managers and engineers are main support system in the operation team and this is
followed by global supply chain gurus. The finance team of British Airways closely connect
with investments and focus on maximising the revenue and return on investment for smooth
operations and functions of the company (Eaton,2017).
Further, the management board of British Airways consist of different direct for each
department this is done to fasten the decision making process for each department and to
standardize and expertise for each process such as the role of director of finance &
performance is to take care of decisions related to finances and investment and giving advice
to the board about any investment opportunities. On other side, director of sales and
marketing has expertise and knowledge on marketing activities; all the decisions and
marketing strategies are formed and implemented under this department. However, all these
directors, authorities and departments are connected to each other as decision taken by any
unit or department affect the whole organization (Karami,2017). Hence, cross functional
relationship of British Airways is broad but have a hierarchical structure with separate
department and unit for each function and operations of the company.
6.0 Conclusion / Recommendations
This report concludes the airline marketing strategies concerning the inception to the
traditional airline industries which only concern passengers and sales price to the
contemporary airline industries which combine business strategies’ to customer focus driven
initiatives through emergent technology, market segmentation, targeting and positioning as
well as strategic goals. British Airways has been one of the safe and reliable airlines with a
worldwide reputation. Its segmentation is around business people, students, and holiday
travelers. British airways have been a competitive airline over the years. The report outlines
how BA can change their market strategies and extend it to car hire, insurance, internet café
facilities, finance to attract existing and new customers. The company should extend their
attention to good working practices.

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The recommendation strategy should focus on customer satisfaction. More offers and
promotions regarding public holidays, seasonal season. BA should extend its business
prospect to car hiring services, insurance, recreational facilities like Virgin airline and Easyjet
to compete in the emergent market. The market strategy should include a discount to frequent
travelers, quality customer services, providing good meal onboard facilities for economy
class travelers instead of focusing on first-class passengers only. British Airways should
create transparent safety and corporate social responsibility.

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7.0 References
Britishairways,2019. British Airways history and heritage Explore our past. Accessed from
https://www.britishairways.com/en-gb/information/about-ba/history-and-heritage/explore-
our-past
Britishairways,2019. British airways.com. Accessed From:
https://www.britishairways.com/en-gb/information/about-ba
Britishairwayscsr,2019. British Airways Corporate Responsibility . Accessed from
https://www.britishairways.com/en-gb/information/about-ba/csr/corporate-responsibility
Chanddler,M.,2016. Economy watch aviation industry information. Accessed From:
Coller, K.E., Helms Mills, J. and Mills, A.J., 2016. The British Airways Heritage Collection:
an ethnographic ‘history’. Business History, 58(4), pp.547-570.
Douglas, I. and Tan, D., 2017. Global airline alliances and profitability: A difference-in-
difference analysis. Transportation Research Part A: Policy and Practice, 103, pp.432-443.
Eaton, J., 2017. Globalization and human resource management in the airline industry.
Routledge.
https://www.economywatch.com/world-industries/airline-industry-aviation-industry.html
Karami, A., 2017. Corporate strategy: evidence from British Airways plc. In The Changing
Patterns of Human Resource Management (pp. 46-64). Routledge.
Kotler, P. and Keller, K., 2003. Marketing Management. Prentice Hall.
Mills, A.J., 2017. The Gendering of Organizational Culture: Social and Organizational
Discourses in the Making of British Airways☆. In Insights and Research on the Study of
Gender and Intersectionality in International Airline Cultures (pp. 37-47). Emerald
Publishing Limited.
Pels, E., Njegovan, N. and Behrens, C., 2017. Low-cost airlines and airport competition.
In Low Cost Carriers (pp. 125-136). Routledge.
Shaw, S., 2016. Airline marketing and management. Routledge.

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Ghosh, S. 2015. “British Airways splits marketing department in major reshuffle”
Campaign, Accessed From : http://www.campaignlive.co.uk/article/1330124/british-airways-
splits-marketing-department-major-reshuffle?src_site=marketingmagazine#