Marketing Strategy of British Airways

This presentation provides an overview of the marketing strategy of British Airways. It covers the company's current situation, SWOT analysis, competitors, segmentation, targeting, and the marketing mix. It also discusses the impact of external factors such as political, economic, socio-cultural, technological, legal, and environmental factors. The presentation concludes with the importance of competitor analysis and the role of marketing strategy in achieving business goals.

MARKETING STRATEGY OF BRITISH AIRWAYS

TABLE OF CONTENT
• INTRODUCTION
• SUMMARY OF COMPANY’S CURRENT SITUATION
• SWOT ANALYSIS
• PESTLE ANALYSIS
• COMPETITORS
• MARKETING STRATEGY OF THE COMPANY
• SEGMENTATION
• TARGETING
• MARKETING MIX OF THE COMPANY
• CONCLUSION

INTRODUCTION
• Market is considered to be a dynamic environment which with the change in the course of time is
constantly changing. So, this is the reason why company should develop a planned marketing
strategy on a regular basis. Marketing strategy, is said to be a culmination of various activities
considering both external and internal factors which helps a company in making a move towards
achieving the short as well as long term goals.

SUMMARY OF COMPANY’S CURRENT
SITUATION
• Growing business is not an easy task as the company needs to develop a viable idea for which it is
important to discover a profitable niche. Furthermore, with the help of this a firm can deliver the
goods and services to its targeted customers. British Airways, a flying carrier assisting in taking
people from one destination to another.
• Although, the company is the most promising firm in providing its services and facilities but due to
the pandemic (COVID-19), company is struggling in coping up with financial crisis.

SWOT ANALYSIS
STRENGTHS
 “British Airways”, its brand name is itself the biggest strength of the company. Company has an
experience of around 90 years and their significant presence in the Heathrow, Gatwick and London City is
providing them with the great privilege of connecting with other countries.
 British Airways has a good return on the capital expenditure they do thus, as compared to other companies
they are successful in executing their new projects.
 In terms of technology, company has its own engineering branch which makes the maintenance of its
aircraft fleet easier. In the company’s maintenance lines around 70 airports across the world are included.
 Concerning the future actions, British Airways is the first one to participate in developing the first global
pricing system (CORSIA – Carbon Offset and Reduction Scheme for International Aviation).
 Moreover, company has an alliance with almost all the international airlines such as Qantas, Qatar
Airways, TAM Airlines etc.,

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WEAKNESSES
 Company’s overdependence on the market of United Kingdom is the biggest weakness and this can
be evidences because company generates around 50% of the revenues for UK market itself.
 Attrition rate is higher for the work force and this is because company spends a huge amount of
money in providing training and developing to its employees as compared to its rival companies.
However, they don’t get enough returns from the same.
 In some situations, company doesn’t effectively evaluate the forecasted demands and mis out the
opportunities of providing efficient services and facilities to its customers.

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OPPORTUNITIES
 With the change in course of time and increase in the demands of interconnectivity, British
Airways, has a great opportunity of expanding its business in other areas as well. Developing
economy will help the company in improving its revenues and fulfilling the growing demands of
customers.
 Digitalisations and technological expansion can help the company in enhancing its customer base.
Moreover, for better results, British Airways can use machines and digital technologies for better
analytics and results.

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THREATS
 New government rules and regulations has always come up as a biggest threat for the company. As
they had to make changes in their marketing strategies which takes extra time and money.
 Competition in the market area, there can be a possibility a new company with its innovative
strategies holds a better position in the market area.
 Spread of Coronavirus, is affecting the airlines and companies are struggling a lot to maintain a
proper revenues and profits because most of its flights are being cancelled.

PESTLE ANALYSIS
• Political: In relation with aviation industry, political factor plays a crucial role and for doing this it
has many reasons but one of the major factors is stable government because it leads to growth.
Moreover, political policies help organisation in creating a better environment where companies
can run their business effectively. In context with United Kingdom, all the activities of aviation
industry are run under or regulated by EU legislations and includes regulations like safety,
operating licensing etc.,

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• Economic: United Kingdom has a stable economic policy but sudden changes can give rise to
issues. Same in the year 2020, a drop of around 20% was recorded in the GDP of United Kingdom
because of Covid-19. In order to eliminated the spread of this infectious disease airlines has to
cancel or cut down most of its flights and companies who are operating its business under aviation
industry find difficulty in managing its revenues and profits.

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• Socio-cultural: This mainly includes the demographic changes and according to the current
scenario, millennials are the one who has developed a travel habit whenever they have leisure time.
Moreover, companies are also providing services accordingly majorly concerning about safety. But
this time when the pandemic (Coronavirus) is creating a chaos several airports are shut down and so
travelling. People are avoiding travelling to places for their own safety other’s as well.

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• Technological: In this matter United Kingdom is excellent with technologies. Adoption of new
technologies by the nation has provided with higher efficiency. Moreover, British Airways move
towards reducing carbon foot printing is exceptionally adding a plus point to the company. Besides
this, in the year 2019 the company added 4 new aircrafts Airbus A350 and it is assisting them in
providing comfortable travelling to its customers.
• Legal: United Kingdom has legal regulations for airline industry such as set amount of refunded fees
if there is a cancellation of any flight. Fixed fees structures for different employees according to the
roles and responsibilities so that a better working environment can be maintained.

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• Environment: Unlike other developed countries, United Kingdom is very much concern about the
environment as they have adopted every possible measure through which a proper care of the
environment can be done. Moreover, in relation with the company has planned to reduce the
percent of CO2 emission by around 20% by the year 2030.

COMPETITORS
• In United Kingdom, British Airways is the leading companies and since its establishment it is
providing excellent services to its customers. Company’s service is extended towards 170
destination across the world. Therefore, to become successful they have proved themselves in
providing technological-oriented services. But while talking about its competitors there are many
companies like Easyjet, Thomson Airlines, Virgin Atlantic etc.,

MARKETING STRATEGY OF THE COMPANY
SEGMENTATION
• Considering this, while doing a marketing strategy segmentation is an important factor because it
possesses certain characteristics such as dividing the population according to different groups so
that better services can be provided. In relation with British Airways, as a marketing strategy they
follow multi-segment and significantly provides with four variants of services i.e. economy,
premium economy, executive and first class. Furthermore, these are segmented n the basis of
geographic, demographic, behavioural, psychographic and travel and tourism.

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TARGETING
• When talking about the targeting strategy of British Airways, their services is for all the sections of
the society whether rich, middle class. Customers can avail their services according to their statuses
like they want to travel by economy class: most probably seen in domestic and internal flights,
premium economy: in some of the selected international flights, executive club: In all Europe and
International flights and first class: chosen international flights. Moreover, the services are for
males, females or others as per their affordability.

MARKETING MIX OF THE COMPANY
• Marketing mix is considered as a process through which company can have an evaluation of its
position in the market. It is determined as a complex part of marketing plan and majorly focuses on
external factors and then internal factors.
• Product: In this context, company has excellent terms as the rates of the flight tickets are
comparatively low without compromising its services. Along with this, most of its flights have a
connected route with effective scheduled flights which means in every possible hour they have their
services.

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• Place: In marketing strategy this is another factor which needs to be considered because for
providing effective services it is important that company has a well-established business. Thus,
British Airways along with other airport authorities has worked in developing the infrastructure so
that a safe and proper facilities can be provided to its customers.
• Price: In terms of pricing strategy British Airways has kept it simple i.e. according to the services
the price of flight ticket and other services are determined. However, for their valuable customers
they have discount vouchers and other benefits.

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• Promotions: Unlike other companies, British Airways has also adopted different promotional
strategies from developing a mobile application to providing websites for booking their
reservations. Moreover, in special occasions customers can avail special gift vouchers or coupons
for discounted prices. Thus, British Airways, for connecting with its customers take help from both
print as well as electronic media.

CONCLUSION
• From the above report it has been concluded that, marketing strategy plays a crucial role in
providing an overview of the market and helps in making an effective plan determining the factors.
But most importantly it is crucial that company analyse both internal and external factors as both
the element will assist the company in developing a base for the strategy. Moreover, competitor’s
analysis aids the firm in evaluating the strategies the rival company is using and what kind of
strategies the respective organisation can use for countering the same.

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