Marketing Strategy of British Airways

This report discusses the marketing strategy of British Airways, one of the largest airlines in the UK. It covers the company's current situation, SWOT and PESTLE analysis, competitors, segmentation, targeting, and the marketing mix. The report also highlights the importance of marketing strategy in a dynamic market environment.

MARKETING
STRATEGY
OF
COMPANY
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
SUMMARY OF COMPANY’S CURRENT SITUATION............................................................3
SWOT ANALYSIS.....................................................................................................................3
PESTLE ANALYSIS..................................................................................................................5
COMPETITORS..........................................................................................................................6
MARKETING STRATEGY OF THE COMPANY........................................................................6
SEGMENTATION......................................................................................................................6
TARGETING..............................................................................................................................7
MARKETING MIX OF THE COMPANY.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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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 (Marketing Strategy, 2020).
However, in order to do this report, company which is taken into consideration is “British
Airways”, one of the second largest airline in United Kingdom. Founded in the year 1974 and
provides its services worldwide. The current report will include a brief introduction of the
company along with SWOT and PESTLE analysis. Moreover, marketing strategy will also be
included for analysing the segmentation and target market. However, marketing mix will help in
understanding the same in an effective manner.
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 (British Airways, 2020). 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. For a time
being most of its employees were suspended i.e. 30,000 including cabin crew, ground staffs,
head office employees etc.,
SWOT ANALYSIS
STRENGTHS WEAKNESSES
 “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.
 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
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 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
(British Airways, 2020).
 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.,
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 (SWOT analysis, 2020).
OPPORTUNITIES THREATS
 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
 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
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enhancing its customer base. Moreover,
for better results, British Airways can use
machines and digital technologies for
better analytics and results.
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 (PESTLE Analysis, 2020). 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., Besides this, United Kingdom has
undertaken a lot of measures for providing a convenient facility to travellers. A large number of
amendments were done after Brexit so that its negative impact doesn’t put any effect on the
airline industry.
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 (David,
David and David, 2017). Earlier, United Kingdom had to face Brexit and later on, after the stable
economy a growth of approximately 6.1% was seen in the total revenue of British Airways
reaching to around £13,021 in the year 2018.
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.
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
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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.
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 (Kiráľová, 2019). 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., However, if it is
compared than Virgin Atlantic is the promising brand founded by Richard Branson. Company is
very well known for developing and implementing modification in their services. Besides this, in
the year 2017, company has recorded a turnover of approximately 2.3 billion pounds which
given a tough fight to British Airways.
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 (Kanten and Darma, 2017). Furthermore,
these are segmented n the basis of geographic, demographic, behavioural, psychographic and
travel and tourism. Therefore, for improving the value perception for the services British
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Airways is providing company has to work on the needs and demands of customers on a regular
basis. Moreover, management of the company is assisting them in doing so and they have
successfully succeeded in maintaining a better strategic customer relationship.
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 (Marketing Mix, 2020). Therefore, for
having a better understanding a marketing mix of British Airways is explained below:
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. Talking in relation to onboard services, airlines has excellent attendants dedicated
towards their work. As compared to other companies, British Airways has gone out of the box
and managed to deliver some of the excellent services like in their executive lounges customers
belongs to gold executive class can avail the services like shower, food and gym.
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. Therefore, it can be said that
company has its operative services across the globe (Kingsnorth, 2019).
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. As a result, it helps the company in
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perceiving values. But in this pandemic, company had to cut down its fares as compared to the
price which was usually paid.
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. Besides this,
another important factor that are include in marketing strategy is segmentation and targeting
because this determines to whom the services will be provided. However, marketing mix is the
final stage them helps in providing the final outcome of the market area.
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REFERENCES
Books and Journals
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Kanten, I. K. and Darma, G. S., 2017. Consumer Behaviour, Marketing Strategy,
Customer Satisfaction, and Business Performance. Jurnal Manajemen Bisnis. 14(2). pp.143-165.
Kiráľová, A., 2019. Sustainable tourism marketing strategy: competitive advantage of
destination. In Sustainable Tourism: Breakthroughs in Research and Practice (pp. 183-206). IGI
Global.
David, M. E., David, F. R. and David, F. R., 2017. The quantitative strategic planning
matrix: a new marketing tool. Journal of strategic Marketing. 25(4). pp.342-352.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson
Education.
Angell, R. L. and Kraemer, J. R., International Business Machines Corp,
2017. Automatically generating an optimal marketing strategy for improving cross sales and
upsales of items. U.S. Patent 9,685,048.
Hunt, S. D., 2018. Advancing marketing strategy in the marketing discipline and beyond:
from promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management. 34(1-2). pp.16-51.
Palmatier, R. W. and Sridhar, S., 2017. Marketing strategy: Based on first principles and
data analytics. Macmillan International Higher Education.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing
strategy in a digital era. International Marketing Review.
Online
Marketing Strategy. 2020. [Online]. Available Through:
<https://marketbusinessnews.com/financial-glossary/marketing-strategy/>.
SWOT analysis. 2020. [Online]. Available Through: <https://articles.bplans.com/how-to-
perform-swot-analysis/>.
PESTLE Analysis. 2020. [Online]. Available Through: <https://pestleanalysis.com/what-
is-pestle-analysis/>.
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Marketing Mix. 2020. [Online]. Available Through:
<https://economictimes.indiatimes.com/definition/marketing-mix>.
British Airways. 2020. [Online]. Available Through:
<https://mediacentre.britishairways.com/factsheets/details/86/Factsheets-3/33>.
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