Marketing Strategies for Cathay Pacific Airways Limited
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This report focuses on developing marketing strategies for Cathay Pacific Airways Limited to improve revenue and overcome losses. It includes an introduction to the company, research methodology, marketing strategies, major competition, marketing analysis, financial analysis, data analysis and findings, and conclusion and recommendations.
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EXECUTIVE SUMMARY In the present era, firm lays high level of emphasis on developing competent marketing strategies that aid in the growth and development of firm. By doing analysis of external environment firm can frame suitable policies that help in achieving goals. For this project report Cathy Pacific Airbus (CPA) limitedhas been selected which is operating in the180 locations of the world. The company has great workforce in worldwide around 33,800 in which more than 26000 are employed in Hong Kong. In this, high level of emphasis is placed on assessing the reasons due to which CPA Ltd incurred loss. To resolve such issue data has been gathered by the researcher from both primary and secondary methods. It can be summarized from primary data evaluation that customers are not highly loyal towards the services of CPA ltd. Further, it can be summarized that decline in the level of customer satisfaction is one of the main causes due to which sales and profitability of the firm. It can be presented from secondary data evaluation that financial position and performance of CPA Ltd is good over HK express. However, it can be seen in the report that in 2016 due to low sales and higher expenses business unit suffered loss. Thus, for making improvement in the current position firm should undertake budgetary control tools which in turn helps in avoiding or reducing the level of such issue.
TABLE OF CONTENTS CHAPTER 1: INTRODUCTION....................................................................................................1 1.1 Background of Cathay Pacific Airways Limited...................................................................1 1.2 Statements of problems..........................................................................................................1 1.3 Purpose of this organization..................................................................................................2 1.4 Contribution...........................................................................................................................2 1.5 Scope......................................................................................................................................3 1.6 Limitations.............................................................................................................................3 CHAPTER 2: RESEARCH METHODOLOGY.............................................................................3 2.1 Primary data...........................................................................................................................3 2.2 Secondary data.......................................................................................................................4 2.3 Data analysis..........................................................................................................................4 CHAPTER: 3 MARKETING STRATEGIES FOR CATHAY PACIFIC AIRWAYS LIMITED.4 3.1 Marketing description............................................................................................................4 3.2 Marketing Mix.......................................................................................................................5 3.2.1 Product................................................................................................................................5 3.2.2 Price....................................................................................................................................6 3.2.3 Place....................................................................................................................................6 3.2.4 Promotion...........................................................................................................................6 CHAPTER: 4 MAJOR COMPETITION........................................................................................7 4.1 Main competition...................................................................................................................7 4.2 Successful factors..................................................................................................................7 4.3 Impact of Cathay Pacific Airways Limited..........................................................................7 CHAPTER 5: MARKETING ANALYSIS OF CPA Ltd................................................................8 SWOT analysis of Cathay Pacific Airways Limited...................................................................8
CHAPTER 6: FINANCIAL ANALYSIS........................................................................................9 CHAPTER 7: DATA ANALYSIS AND FINDINGS...................................................................14 7.1 Results..................................................................................................................................14 Theme 1: Customers often travel through the airlines of CPA Ltd...........................................14 Theme 2: Respondents are neutrally satisfied from the services offered by CPA ltd...............14 Theme 3: Services provided by CPA Ltd gives you high value of money to the middle extent ...................................................................................................................................................15 Theme 4: CPA Ltd offers quality services to the customers on average price level.................16 Theme 5: Improvement is required in the quality of services..................................................17 7.2 Discussion............................................................................................................................17 CHAPTER 8: CONCLUSION AND RECOMMENDATIONS...................................................18 8.1 Conclusion...........................................................................................................................18 8.2 Recommendations................................................................................................................18 REFERENCES..............................................................................................................................19 APPENDIX....................................................................................................................................20
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CHAPTER 1: INTRODUCTION 1.1 Background of Cathay Pacific Airways Limited Airline services facilitated by Cathy Pacific limited since 1946 from Hong Kong. Approximately 70 years of its successful running year’s organization has developed or expanded its business criteria in various fields. This firm has two subsidiaries companies which deal in passenger services and cargo services at around 180 locations in the world. This company is consisting of various Airbus and air craft services. The motive is to provide optimum services than other rivalry organizations (Cathay Pacific,2017). The entity has developed and acquired airlines services of the rivalry firms like Hong Kong Airways etc. which are provided it the initial growth in collection of large digit turnover. As per the current scenario on 31stDecember 2016 the airlines is function in 202 air-crafts, the main aim of this firm is to develop Hong Kong as the largest aviation base in world. The company has great workforce in worldwide around 33,800 in which more than 26000 are employed in Hong Kong. This has great contribution in developing the economy of country as providing employment opportunities such as skilled and experienced pilot, crew members and officers who are regulating the air-craft traffics. As per growthof Cathay Pacific Airways Limited it has favorable share values in market and various big shareholders have made investments in it which are Air China as well as Swire Pacific limited. 1.2 Statements of problems Cathay Pacific Airways Limited has suffered from losses and done to have enough fund to operate the operational functions of firm. Organization had experienced the problems in last 8 years regarding employee relationship issues, financial draw backs and various internal problems that is affecting revenue generation of this entity. Their share values were also being reducing and various problems has been faced by them related with inappropriate funds for operating airlines services. In year 2001 there was employee disputes held in Hong Kong Aircrew as they have lunched the roster strategy at work place like scheduling the workforce timings and duties. Plans were building as to make the swiftness in the process of performance made by employees but it was unfavorable for pilots. It also disrupts the scheduling of flights and time of their arrival and departure is completely become out of the control situation. They have to face problems regarding cancellation of flights, non proper scheduling as the pilots has been suffered due to
sickness. Due these problems there will be more disputes arises and then company took serious action and fired more than 50 pilots in which half of them are captains as well as more than 10 officers of the HKAOA has discharged from their duties. 1.3 Purpose of this organization Objective of this organization is about developing Hong Kong as world's largest aircraft aviation base. These things going to be made as per the mangers of this firm make efforts in developing the favorable marketing strategies such as employee retention, scheduling their jobs, assigning duties as per their skills and talents, proper training to them. There will be requirement s of various training process such as class room teaching, simulation program, on the ground means practical knowledge that will help in building confidence in them as they can make their valuable efforts in the operations of the organization. Organization has developed first mobile boarding pass application machines. Which helps consumers or passengers in obtaining the boarding passes without standing in queue for log passage of time? It was convenient for their staff too as they will have enough time to go for other dealings regarded with solving the passenger problems. Managers of this firm are also planning to improve the brand image in market as to have large numbers of buyers as well as shareholders. They have started marketing functioning of this entity over social media sites such as Facebook, twitter, YouTube, Flicker and developed blogging which is appreciated by consumers. These techniques help in generating attention of stakeholders and they will make their valuable investments as to rise the funds of the organization. 1.4 Contribution Organization has made its contribution in various subsidiary companies such as acquiring them, providing capital investments that will help in developing the operational activities of such firms. They also helped in improving the economic conditions and rise in the living standard of people. It has facilitates the employment opportunities in Hong Kong. More than 23000 workers are working in the firm are from Hong Kong. Entity has workforce around 34000 as per year 2016. Firm has acquired subsidiary companies which are Air Hong Kong and Cathay Dragon. They have created the good brand image in market and have acquired much Airbus, aircraft’s that are facilitating the best transportation services to consumers throughout world. They are providing cargo services in more than 44 countries at 180 several locations. Contribution of this
organization can be said better than various rivalry companies, with the help of its subsidiary firms. As per the records of 2010 year, working with Dragon air they have carried more than 27 million passengers as well as 1.8 million tons of cargo were delivered. 1.5 Scope The report will be considered on the basis of 2 years data base which describes that the organization is running into loss and there is need for changes into operational functions. In 2016 there has been loss of HK$575 million that as compared with the gains of HK$ 6000 million in 2015. This has affected the losses per share which tends at 14.6% as compare with previous year's rates of 152.5%. In this, scope of the current report and its finding is too wide which in turn provides higher management of CPA ltd with the suitable framework for decision making and makes improvement in the current financial position of firm. 1.6 Limitations In order to investigate the issue financial data of CPA ltd and HK express pertaining to the year 2015 & 2016 has been gathered. Hence, due to time limitation only 2 years data has been considered for the purpose of evaluation. If researcher will consider the data of more years then there would be wide framework for decision making. However, to reduce the effect of such limitation ratio analysis has been conducted to identify over the years performance trend and position in against to the competitors. CHAPTER 2: RESEARCH METHODOLOGY In order to carry our study in a highly structured way researcher is required to assess suitable methods or techniques pertaining to the concerned study. Moreover, methodology acts as a pathway and provides deeper insight to the researcher about the manner in which study needs to be conducted. In other words, research methodology may be served as guideline which assists in doing whole study in an effectual way (Sorescu, Warren and Ertekin, 2017). In the present study, to assess the reasons the reasons due to which loss incurred CPA Ltd quantitative research type has been selected. Further, for conducting study in the right direction researcher is required to gather data set from appropriate sources. In this regard, by using the varied techniques primary and secondary data has been gathered by the researcher.
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2.1 Primary data Primary data implies for the one that researcher gathers for the first time to discover specific information and resolving the concerned issues. There are several ways through which one can gather primary data such as survey, focus group, observation and interview. All such tools are highly effectual which in turn provides assistance to the researcher in collecting specific information as per the issue which is going to be investigated. In this, to assess the reasons behind loss and decreasing sales revenue survey has been conducted by the researcher. For the purpose of survey 30 customers of CPA has been selected through the means of simple random sampling technique. By using questionnaire researcher has asked questions from the customers regarding their satisfaction level, loyalty aspects etc. Hence, by sending questionnaire, including both open and close ended questions, on the mail-id of customer’s primary data has been gathered by the researcher. 2.2 Secondary data Data that has already been gathered, published and analyzed by other scholars is considered as secondary. Sources of secondary data contain journals, books, articles, annual reports etc. In this, to resolve the issue in relation to identifying the causes of loss researcher has used the annual reports of CPA Ltd. By accessing the company’s annual report, available on internet, researcher has gathered information about the profitability, liquidity, solvency and efficiency aspect of the firm.Besides this, for assessing the financial position and performance of CPA Ltd in against to the rival firm income statement and balance sheet of Hong Kong Express has also been evaluated by the scholar. 2.3 Data analysis In order to analyze gathered data set such as primary and secondary varied techniques have been employed by an investigator.Hence, thematic analysis has been conducted by the researcher to present suitable solution from primary data set. In addition to this, ratio analysis has been conducted by the researcher for evaluating the reasons behind the occurrence of loss.
CHAPTER:3MARKETINGSTRATEGIESFORCATHAYPACIFIC AIRWAYS LIMITED 3.1 Marketing description Strategies are to be made as to make a good market share and generate favourable income from delivering good services to consumers. Cathay Pacific Airways limited must use various techniques as to improve the marketing performances. Organisation need to follow several marketing strategies that will help in generating the good response from the market as well as fruitful in overcoming the losses which as been suffered by them. Targeting:For the improvement in organisational revenue there is need to develop the marketing tactics. Cathay Pacific Airways Limited need to target the market like they need to develop the services which will be fruitful for every category of consumers. They need to modify plans for its subsidiary aircraft companies, cargo services as well as provoke the mailing systems. Segmentation:There must be use of these marketing strategies as managers of this organization need to segment market as per economic standard of consumers and ages of them. Services provided into business class must describe the luxuriousness. Food quality and other services must be luxury because the business class is being afforded by the individuals by paying more than the other passengers in the flight. Economy class in a craft need to be improved there should be better services in the field of serving the passengers a quality service. A part from crew services, cargo facilities of Cathay Pacific Airways Limited need to be developed. There must be proper labeling over is percale that is going to be delivered. The details must be mentioned over each article relating with the name of owner, address and details of goods. Positioning:To acquire a good brand image and create a non replaceable position, organization need to improve quality of services. They must keep thought in mind regarding giving appropriate satisfaction to consumers. They need to develop various consumer supportive services that will help in creating the image in market. There are various competitive firms who are offering same services as well as challenging the organization people belongs to different nations as a passenger of the craft there must be recruitment of the talented staff who can easily understands their problems and give theme effective solutions. These techniques will help in
creating the brand image in various countries and consumers will prefer to travel with this airlines. 3.2 Marketing Mix 3.2.1 Product Cathay Pacific Airways Limited is awarding various facilities to consumers such as air craft services, cargo; mailing etc. the motive of the organization is to make the great position the market. As per the losses faced by the organization in past years that need to be overcome. There must be implementation of innovative ideas such as firm must provide mobile boarding pass machines that will help the passengers in collecting their boarding passes with the help of these devices. There will be promptness in the work as consumers use this technology. Further the need to focus over giving the best cargo services throughout the world (Datta, Ailawadi and van Heerde, 2017). Organization need to develop online services through their site such as booking the tickets and giving the tracking facilities to the individuals who has made send their percales to deliver at various locations. 3.2.2 Price To over with losses organization needs to focus over their pricing techniques. There must be affordable rates for each categories in crew such as economy class, business class etc. business class is said to be known as high level category. There are mainly high profile people used to travel in this category. They pays more than other passengers in the craft as have the luxurious experience of travelling. This thing must be considered by Cathay Pacific Airways Limited regarding proper satisfaction to such consumers. In consideration with high class they need to balance the economy class such there must be fruitful services provided to them. Prices for each services must be appropriate as there will be favorable earning with consideration of consumers satisfaction. 3.2.3 Place Cathay Pacific Airways Limited has many airbase in 44 countries in world. There need to be develop strategies as to invite large numbers of consumers to use their services. They need to recruit the local individuals from various locations so that will be easy or convenient way for consumersingainingtheappropriateinformation’sregardingservicesprovidedbythe
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organization. To overcome with the financial draw backs they need to set pricing scale at various places as according to the economic standard of their citizens. 3.2.4 Promotion Promotion must be done with the help of various television advertisements, online surveys on social media sites such as Facebook, twitter, flicker which helps in creating the identity of position in such markets. They must use marketing tool such as questionnaire which will help in gaining adequate data regarding consumer needs and wants of the consumers (Patil and Bach, 2017). They need to make deals with several travel agencies and grant free holiday package to consumers. It will be helpful in gaining the good consumers response and create the brand image in their mind. CHAPTER: 4 MAJOR COMPETITION 4.1 Main competition Cathay Pacific Airways Limited can be challenged by various airline firms in the market. They are giving tough competition in field of providing best consumers services at lower rates. The main competitors of this organization are Singapore Airlines Limited, Air China, Air Asia and Kalitta Air. These firms are facilitating consumers in good quality of services also in the field of cargo services. These can be tough competition to them as they will not improve or make innovative changed in the prices or promotional techniques. They need to make several changes such as recruiting the qualified or experience workforce. Need to focus over employing maximum numbersof local or domestic people that will help in giving the appropriate information’s to the passengers. It will be helpful in making the favorable promotion of such services facilitate by the airline. They need to make changes in dealings with buyers such as online consumer care services; here the passenger can collect necessary informations regarding flight schedule, time duration and prices of tickets as well as other service of this air craft firm. 4.2 Successful factors For giving the tough challengeto competitors,company need to develop various techniques in which they will perform better than the rivalry firms. Cathay Pacific Airways Limited must develop good strength in market by accessing consumer needs as well as services provided by other firms. They need to make planning in advancing services and facilitate the quality service at the most convenient prices. They must seek the weakness of the other
organizations and expand the criteria of their services (David, David and David, 2017). There must be adoption of various promotional techniques which will be fruitful in developing large numbers of consumers. 4.3 Impact of Cathay Pacific Airways Limited Due to competitive environment in airline industries problems has been faced by Cathay Pacific Airways Limited. There has been reduction in the profit earning of the company. Due to competition in air services as well as cargo services provided by other firms has created the big loss for this industry. Many substitute service agencies affects in losing maximum numbers of consumers. There has been reduction in shares value and the investors of this business as peoples do not find it is fruitful in investing their valuable funds. It has lower down the image of this organization as well as poor marketing techniques cannot generate the identity of this firm in the market. CHAPTER 5: MARKETING ANALYSIS OF CPA Ltd SWOT analysis of Cathay Pacific Airways Limited In order to evaluate internal and external business aspects of Cathay Pacific Airways Limited SWOT analysis is conducted.It is highly effectual tool which in turn provides deeper insight about the strengths and weaknesses of an organization. In addition to this, it also highlights opportunities and threats that are associated with the firm. Thus, by using such tool firm can enhance its efficiency and effectiveness by converting weaknesses into strengths. Along with this, SWOT analysis also indicates how business unit can grab opportunities by using strengths (Njoh, 2017). Further, such analysis also assists firm in developing highly suitable framework through which impact of threat can be reduced.By considering all such aspects SWOT analysis of Cathay Pacific Airways Limited is performed such as follows: Strengths: Company’s strength includes presence in the airline market or sector from long time period. Along with this, high and satisfied customer base is another main strength of the firm as it carries approximately 30 million passengers in a year. Further, number of aircraft fleet size accounts for 140 and it has covered 110 destinations in over 35 countries. This aspect clearly shows that firm captured global market to a great extent.
Weaknesses: CPA Ltd highly relies on international onward moving traffic which is one of the main weaknesses of it. Besides this, company has captured limited market share because airline sector is filled up with the high level of competition or rival firms (Cathay Pacific SWOT Analysis, USP & Competitors, 2017).Opportunities:Byplacingemphasisonpopularinternationaldestinationsbusiness organization can attract large number of people. This in turn will aid in the productivity and profitability aspect of firm significantly. Apart from this, through leveraging the dedicated set of customers CPA Ltd would become able to develop highly loyal customer base. Threats: There are several factors or aspects which in turn imposes threat in front of the organization. It includes rising fuel and labor cost which in turn has direct as well as significant influence on the expenditure and thereby profitability aspect of firm. Along with this, competition in the airlines sector is also increasing with the very high pace which in turn imposes high threat in front of the organization. Moreover, customers give high preference to the company which offers quality services at suitable prices (Steffen, 2017). In this regard, possibility of customers switching will affect growth and success of Cathay Pacific Airways Limited. CHAPTER 6: FINANCIAL ANALYSIS Profitability analysis CPA LtdHK express ParticularsFormulas2015201620152016 Gross profit57157512085460 Operating profit6664-525-50-71 Net profit6000-575-214-22
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Sales revenue 102342 (Annual report of Cathay Pacific Airways Limited (2015), 2017) 92751 (Annual report of Cathay Pacific Airways Limited (2016), 2017)337183 GP ratio GP / net sales *10055.80%55.20%16.02%32.79% OP ratio OP / net sales *1006.50%-0.60%-14.84%-38.80% NP ratio NP / net sales *1005.90%-0.60%-63.50%-12.02% Interpretation: Gross profit ratio: It can be visualised from the above table that, GP ratio of CPA limited decreases from 55.80% to 55.20% at the end of accounting period 2016. When looking at its competitor then it has been assessed that, ratio enhances from 16.02% to 32.79%. It can be interpreted through this data that CPA company not able to manage and reduce its cost of goods sold in FY 2016 in comparison to HK express airways limited. Operating profit ratio: Decreasing OP ratio in both the airways company like CPA Limited and HK express indicates that, management unable to reduce total operating costs within workplace. It was 6.50% and -14.84% at the fiscal year ending 2015 in CPA and HK Company respectively. Further, declined consistently and reaches up to -0.60% and -38.80% in CPA and HK respectively at the end of 2016. Different kinds of operating
expenditure incurred in the firm are not managed by both the firms. Further, for enhancing their performance in the industry management must employ strategies to reduce total operating costs in next period. Net profit ratio:The measurement tool through which overall business performance in terms of profitability asessed at the end of an accounting period is identified as net profit ratio. In the present scenario, NP ratio reduced from 5.90% to -0.60% at the year ending 2016 with reference to the CPA Limited entity. On the other hand, inclining NP ratio from -63.50% to -12.02% in HK express shows that it performs little better in comparison to past year. However, both the firms having huge amount of indirect expenses in the accounting periods which is cause of affecting profitability performance in the industry (Tankisi and et.al., 2017). Solvency Ratio: CPA LtdHK express ParticularsFormulas2015201620152016 Debt306963212210621555 Equity1728271774213512 3360 (Financial statements of HNA group, 2017) Debt to equity ratio Debt / Equity0.180.180.300.46 Interpretation:
From the above stated calculation it can be analyzed that, CPA Limited company considers equity financing source more as compared to the debt for raising fund. The reason for commenting this is that, capital structure of debt to equity with this firm is 0.18:1 in both the financial years. On the other hand side, when looking at the HK express Airways then it can be observed that it considered debt for enhancing business capital. Due to this particular reason debt to equity ratio was 0.30:1 at the end of FY 2015 and increases in 2016 i.e. 0.46:1. Along with this, it not able to meet with the short term obligation an appropriate direction as compared to the CPA limited. Henceforth, it can be said that CPA Airways performing well in the Airlines industry. Liquidity analysis:Liquidity denoted as capabilities of firms in meeting their short- term debts. The calculation can be based on meeting the three ratios such as current, acid and quick ratios (Edmister, 2017). Here, measurement is based on comparison between CPA Ltd and HK express. CPA LtdHK express Particular sFormulas2015201620152016 Current assets332253139244902495 Inventory1366151487 Prepaid expenses22511 Quick assets318592987842572477 Current liabilities4977744092921638 Current ratio Current assets / current liabilities0.670.714.883.91 Quick ratioQuick assets / CL0.640.684.623.88 Interpretation:
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As per the above calculations it is to be interpreted that as per the analysis based on 2015 & 2016 it can be said that HK express has efficient amount of liquid assets as well as they are able to meet the short term debts of the organization. Current ratio of CPA and HK express are having variations such as in 2015 CPA has 0.67 and in 2016 it is 0.71 which do not meet the standard criteria of ratios such as 2:1. As per current ratio of HK expresses in 2015 it is 4.88 and in 2016 it is 3.91, here they are able to meet the current ratios to the standard ratios. It describes that HK Express is able meet its debts. The quick ratios of both the organizations have no that much variation as compare with current ratio. HK express has enough amount of liquid assets as it can be able to meet its expenses as well as debts. Efficiency analysis:It describes efficiency of firm in meeting requirements in the market. It can be calculate over the inventory of organization as compare with the turnover (Zhang and et.al., 2017). Here the analysis of CPA and HK express for the years 2015 and 2016. CPA LtdHK express ParticularsFormulas2015201620152016 Inventory turnover ratioCOGS / Average stock30.5828.8523.9516.80 Assets turnover ratioTotal assets / sales revenue.59.53.06.03 Fixed assets turnover ratioFixed assets / sales revenue1.03.901.05.62 Receivable turnover ratio18.8016.933.092.77 Interpretation:Outcome of ratio analysis presents that assets turnover ratio of CPA Ltd was .59 and .53 in the year of 2015 & 2016. On the other side, outcome of such measure in the case of HK express accounts for .06 & .03 significantly. Along with this, at the end of 2016, fixed assets turnover ratio of CPA Ltd accounted for .90 which was higher in comparison to HK express. This aspect shows that CPA used its assets for the purpose of generating sales in an effectual way as compared to the rival firm. Further, inventory turnover ratio of the business organization was 30.58 & 28.85 during the accounting year 2015 and 2016. In addition to this, stock turnover ratio of the business
organization showing decreasing trend from 23.95 to 16.80 times. Such financial evaluation shows that at the end of 2016, stock turnover of CPA Ltd was good in against to HK express. Thus, in accordance with the outcome of stock, total and fixed assets turnover ratio CPA performed well in 2015 and 2016 over HK express. However, in the financial year 2016, receivable turnover ratio of CPA ltd and HK express was 16.93 and 2.77. On the basis of such aspect, it can be presented that company received money from debtors after long time in comparison to HK express. This is turn closely influences working capital aspect of the firm and thereby impacts day to day business activities. Along with this, when company receives money from debtor after longer period then it uses debt instrument for meeting the financial need which in turn imposes cost in front of the company and affect profitability. CHAPTER 7: DATA ANALYSIS AND FINDINGS 7.1 Results Theme 1: Customers often travel through the airlines of CPA Ltd ParticularsViews of respondents% of respondents Often1033.33% Less often620% Frequently723.33% Les frequently723.33% Total30100%
OftenLess oftenFrequentlyLes frequently 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% % of respondents % of respondents Theme 2: Respondents are neutrally satisfied from the services offered by CPA ltd ParticularsViews of respondents% of respondents Satisfied620% Highly satisfied517% Neither agree nor disagree1240% Dissatisfied517% Highly dissatisfied27% Total30100% Satisfied Highly satisfied Neither agree nor disagree Dissatisfied Highly dissatisfied 0% 10% 20% 30% 40% % of respondents % of respondents
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Theme 3: Services provided by CPA Ltd gives you high value of money to the middle extent ParticularsViews of respondents% of respondents Agree620% Strongly agree310% Neither agree nor disagree1033% Disagree620% Strongly disagree517% Total30100% AgreeStrongly agreeNeither agree nor disagree DisagreeStrongly disagree 0% 5% 10% 15% 20% 25% 30% 35% % of respondents % of respondents Theme 4: CPA Ltd offers quality services to the customers on average price level ParticularsViews of respondents% of respondents Agree310% Strongly agree413% Neutral1343% Disagree620% Strongly disagree413% Total30100
AgreeStrongly agreeNeutralDisagreeStrongly disagree 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% % of respondents % of respondents Theme 5: Improvement is required in the quality of services ParticularsViews of respondents% of respondents Price1033% Quality of services1240% Others827% Total30100 PriceQuality of servicesOthers 0% 5% 10% 15% 20% 25% 30% 35% 40% % of respondents % of respondents 7.2 Discussion From primary data investigation, it has been found that out of selected customers or respondents 33.33% often travel by the airlines of CPA Ltd. On the other side, individuals who
less frequently travel via CPA Ltd implies for 23.33%. Hence, graphical presentation pertaining to theme 1 clearly shows that customers are not highly loyal towards the services of CPA ltd. Further, it has been assessed that 40% respondents neutrally satisfied from the services of CPA Ltd, whereas 24% fall into the category of people who are dissatisfied. Thus, decline in the level of customer satisfaction is one of the main causes due to which sales and profitability of the firm reduced significantly in 2016 as compared to the prior years. Moreover, now customers prefer to use the services of firm which give high value of money to them through offering quality products at suitable prices. Along with this, through survey it has been identified that 40% respondentsrequireimprovementinthequalityaspect.Ontheotherside,someofthe respondents said that company needs to provide them with innovative services that make their travel experience joyful. Apart from this, 33% respondents said that company needs to modify its pricing policies and come up with the attractive packages for corporate, upper and middle class customers. CHAPTER 8: CONCLUSION AND RECOMMENDATIONS 8.1 Conclusion From the above report, it has been concluded that due to decreasing sales and incline expenditure level is one of the main cause due to which CPA ltd incurred loss. It can be seen in the report that to evaluate the issue both primary and secondary data has been considered Besides this, it can be inferred from evaluation that customers are not highly satisfied from the services offered by CPA Ltd. It can be summarized from secondary data evaluation that financial position and performance of CPA Ltd is good over HK express. However, it can be seen in the report that in 2016 due to low sales and higher expenses business unit suffered loss. 8.2 Recommendations On the basis of identified causes for loss it is recommended to CPA Ltd to lays high level of emphasis on promotional. This in turn helps in attracting the large number of customers and thereby maximizes the level of sales. In addition to this, firm should undertake budgetary control tools which in turn clearly indicates deviation and assists company in taking suitable action for improvement within
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the suitable time frame.In this way, by identifying the reasons of loss and taking strategic measures timely firm can improve its profitability aspect. Further, it is suggested to CPA ltd to provide customers with innovative and high quality services. This in turn may result into high level of satisfaction among the customers and thereby growth in both productivity as well as profitability.
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Annual report of Cathay Pacific Airways Limited (2015).2017. [Pdf]. Available through: < https://www.cathaypacific.com/content/dam/cx/about-us/investor-relations/interim-annual- reports/en/2015-cx-annual-report-en.pdf>. [Accessed on 22ndSeptember 2017]. Annual report of Cathay Pacific Airways Limited (2016).2017. [pdf]. Available through: <https://www.cathaypacific.com/content/dam/cx/about-us/investor-relations/interim-annual- reports/en/CX16_Final_en.pdf>. [Accessed on 22ndSeptember 2017]. CathayPacific.2017.[Online].Availablethrough:<https://www.oneworld.com/member- airlines/cathay-pacific >. [Accessed on 22ndSeptember 2017]. CathayPacificSWOT Analysis,USP&Competitors. 2017.[Online].Availablethrough: <http://www.mbaskool.com/brandguide/airlines/346-cathay-pacific.html>. [Accessed on 22nd September 2017]. FinancialstatementsofHNAgroup.2017.[Online].Availablethrough: <http://financials.morningstar.com/income-statement/is.html?t=00521®ion=hkg>. [Accessed on 22ndSeptember 2017].
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APPENDIX Questionnaire Demographic information Name: Age: Income: Q.1 How often do you travel through the airlines of CPA ltd? Often () Frequently () Less frequently () Q.2 Are you satisfied from the services offered by CPA ltd? Satisfied () Highly satisfied () Neutral () Dissatisfied () Highly dissatisfied () Q.3 Do you agree that services provided by CPA Ltd gives you high value of money? Agree () Strongly agree () Neither agree nor disagree () Disagree () Strongly disagree () Q.4 Do you agree that CPA Ltd offers quality services to the customers at affordable prices? Agree ()
Strongly agree () Neither agree nor disagree () Disagree () Strongly disagree () Q.5 From the following list, in which factor do you require improvement? Price () Quality of services () Other facilities (Kindly specify) Q.6 Do you want to give any recommendation for further improvement in CPA Ltd …..(Kindly specify with the reasons if any)