British Airways Global Marketing Analysis

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This assignment delves into the global marketing strategies employed by British Airways. It examines the company's marketing plans, highlighting both their advantages and disadvantages within a competitive landscape. The analysis incorporates discussions on contemporary social and commercial marketing principles, showcasing how they are applied in the context of the aviation industry.

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Principles and Practice of
Marketing

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Background.................................................................................................................................1
1. Outlining the usage of following concepts to build the brand................................................2
2. Usage standardisation and
adaptation strategies within its marketing mix...........................................................................5
4Ps of Marketing Mix.................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
In a business process, marketing is a broad process in which several tools and techniques
are being adopted so that operations which are being conducted can be proved worth. Various
process which are being adopted includes research, designing of product and development,
promotion and customer services. This directly or indirectly leads to attainment of the aims and
objectives of the firm in effective and effective manner (Dann, 2010). Company chosen for this
report is British Airways which is an International Company providing aviation services to the
customers. This company was established in 1974 after the British Airways Board was founded
by the British Govt. . In this report following things which will be discussed are identification
and positioning of the brand and apart from that the ways by which standardisation and
adaptation strategies will be adopted by the organisation within marketing mix in its global
marketing strategy for attainment of goals and objective in effective manner.
TASK 1
Background
British Airways is basically an aviation company which provides services to the
customers in form of making them travel from one place to another. Marketing strategy is all
about mix of Place, Product, price and Promotion. Thus current marketing strategy of British
Airways is based on these marketing mix elements. BA have strategies regarding product,
pricing, promotion.
Production strategy is the main key feature of BA as the without product and services other three
marketing strategies can not be described. Main service and product provided by British Airways
is air carriers for the customers who wish to travel from one place to another. There are various
types of customers who travel and for their comfort zone there are certain classes made which
are executive class, business class, economy class and club class. Products sold by the BA are
being divided into various product levels and in their case BA has defined into three categories
which attracts customers to access those services (Cătoiu, Vrânceanu and Filip, 2010). Important
production strategy is that they fulfil the basic needs of the customers which is being expected
and also provide them extra services which can attract the customers in large group regarding
travelling.
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Another element used by the BA is the pricing strategy which has three different elements and
they are premium price strategy in which the high class society is being classified and thus
according to the price paid will be the services provided. Second one is medium price strategies
for the medium class people which is lower as compared to high class. The main motive behind
this kind of strategy is to give high competition level to other airlines who provide the same
services. Third one is low pricing strategy which is developed to compete with low cost carriers
like Ryanair. They provide low cost services along with the added quality services and its name.
This will enable people to prefer the BA as they are getting services in the same cost with more
known brand along with extra services.
Apart from this promotional strategies have been used like giving out special offers during
festival like Christmas. Moreover, they use price slashing technique in which they reduce the
fares up to a large extent for a single way journey and also with that domestic flying rates is also
been reduced (Kubacki and et. al., 2015).
Apart from that various problems which are being faced by the British Airways are terrorism
attacks, ups and downs in oil prices and strikes. These problems lead to hamper the travelling of
customers and mainly the goodwill of company. So in order to avoid those issues certain level of
securities has been adopted which are highly confidential and also they keep track on every
activity of travellers and the route which is being taken by the Aeroplane. Moreover they have
adopted the technique of gathering feedback through online mails regarding their comfort level
while travelling and maintaining the decorum and brand image of the company.
Stated above strategies are being used by the company in order to acquire the market share and
also attract customers in order to get lead in the competitive market.
1. Outlining the usage of following concepts to build the brand
There are following concepts which most of the institution whether its small or large
utilises to build up their own brand in new market and new country which is Romania where
they can set up their foot prints by providing products and services to the prestigious customers
and those concepts are: Brand Recognition: It is a process in which the customer have the knowledge about brand
and its quality as well and they can determine the brand by just viewing the product or
logo on the service, tag line or the way product is being packed and many more. This
kind of approach is highly used by the organisation for expanding in new market of
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Romania in order to attract the customers (Smith, 2012). This is highly
essential for the lower class economy in the British Airways because
people in who are travelling from lower class economy can get extra
services as compared to other flights within the same prices. It can be
further more explained by the example that British Airways has good
brand image in front of people and other competitors. This brand is
highly recognised by the people, so if BA provides the same services
to the people in same price in Romania just like other competitors
then due to high recognisable Brand people will prefer to travel
through BA. Thus by this it can be said that brand recognition is
highly effective for the British Airways. Brand identity: In this kind of approach there are tangible and visible
elements of brand like colours, design, logotype, name and symbol
which together determine and separate the brand in the mind of
customers. This type of approach is mainly used by the companies in
order to get the attention of customers in new market . The more
attractive the logo and the product design will be, more customers
will be attracted. The logo of British Airways is simple in nature but
highly recognisable to the customers. Mainly people do not need to
see the name and title, instead of that they can recognise the brand by
its logo. Services which will be provided in Romania to the customers
will also effective and reasonable according to the price provided by
the airlines. This has huge impact on the purchasing power of the
economy as the logo of the British Airways is the symbol of Speed Bird
with the colour of British flag in it. So that factor might can affect the
perception of Romanian people and can effect the productivity and
profitability of the company in effective manner (Christopher, Payne and
Ballantyne, 2013). Brand Positioning: This is an approach in which influence is done to
the perception of customer regarding brand or the product relative to
the perception of competing brands or products. The main purpose is
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to attract and maintain a position in the mind of customers by
providing them effective and satisfactory services. This is highly
essential from the point of view of British Airways as changing the
perception of people regarding their services and flight charges in a
new country where they are not providing services yet . Many of the
people in Romania believe that BA is only for high class people but
this perception is mainly changed by the introducing low class in the
flights in which the people travelling with low class will get some
extra facilities in the same price as compared to the other aviation
services. So this caters the mobility of services towards the economy
and low class people who are mainly budget conscious and want to
travel through the airlines services (Liu, 2012). So by this it can be
stated that British Airways has made various plans and strategies for
positioning the brand and capturing the target market by acquiring
customers of middle and low class in budgeted price fairs so that
competitive lead can be taken within Romania Market.
(Source: Brand Positioning,2017)
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Brand Personality: In this kind of approach, human traits are
interrelated with a particular brand name and those common features
are uniqueness, sincerity, intellectualism, competence, excitement
and sophistication. It give few elements which an individual can relate
with the brand name in order to improve awareness regarding brand
and popularity. People are now-er days are adopting branding
strategy which helps in analysing the wants and needs of consumers
and thus according to that products and services are being developed.
The equity brand of British Airways are trying to focus on the
emotions of people and sentiments rather than fear of selling
(Marimuthu and et. al., 2010). So for that British Airways have created
comfortable environment within flights while travelling so that people
can have the essence of home and they can be more comfortable.
Moreover, person who is travelling for first time may not know about
the procedure which needs to be followed and appropriate help can be
provided so that comfortable environment can be created for that
person. This can make consumer create long lasting relationship with
the Brand and also can do the mouth publicity of the company and its
brand image. Thus by this it can be stated that brand personality can
be directly affected with British Airways when they are establishing
their brand in Romania marketplace. There are 5 human
characteristics which are associated with the company and they are
like openness to experience, extraversion, Agreeableness, Curiosity
for innovation and neuroticism. These all can be beneficial for BA but
among them curiosity for innovation suits them best as for targeting
new market at new country like Romania requires innovation for
attracting large amount of customers.
Brand Affinity: This is all about making predictions about the
behaviour of consumer and also this adds up a layer of data which
helps in distinguishing the customers so that market can be
segmented. This majorly helps an organisation whether its small or
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large in scale to identify the customers and their buying behaviour so
that modification can be done according to the needs and wants
(Biswas and et. al., 2013). This can be related to the British Airways in
which research and development department analyse the behaviour of
customer and its purchasing power. BA analyse the market and the
customers who have certain budget and according to the needs and
wants of people in Romania , they have classified the way of travelling
and have made certain classes like Business class, economic class and
low class in which people can opt for the way of travelling according
to their budget. This way choices have been created and people can
easily accommodate. Moreover this will bring loyalty towards the
brand value so that they are habitual for purchasing the same product
within large market. BA will adopt several strategies which assists in
attracting buyers for particular brand like in Airways. Reasonable
price of product is being provided by them for every kind of people
which in turn will enable them to attract the Romanian people.
In above statement, various marketing strategies are defined which aids in
determining the enhancement of business process' profitability and
productivity in effective manner. In addition, growth and success of the
organisation can be obtained Romania market. It includes identity of Brand,
brand positioning, brand affinity and recognition of brand of British Airways
services and products (Laczniak and Murphy, 2012).
2. Usage standardisation and adaptation strategies within its marketing mix
Standardisation: It is an process which aids in developing and executing technical
standards based on totally several parties like users, authorities, institution, firms and
associations. They help in quality maximisation, repeat-abilities, security, sympathy and safety
of formal procedures in efficient and effective manner.
Adaption: It is a kind of approach in which outfit the world of institution environment
which improve the suitability of evolution. Moreover it also states that functions adaption and
the activities which needs to be maintained in proper manner (Christopher and Peck, 2012).
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Standardization and adaptation of plan of action in the British Airways
The main motive of the new strategies is to expand the standardisation for the institution.
Various benefits is being provided by the standardisation regarding cost but it becomes failure in
stating difference between few person in the market share. Adaptation strategy is applied with
the motive of distinguishing between several individuals in the market. In order to develop the
international market it is highly required to apply standardisation so that unique factors of local
market of Romania can be addressed for maintaining the level of actual needs and wants of the
customers within market place. Standardisation tools and technique can be utilised by British
Airways in order to expand their supply chain management, process of services, employee
relations and other operations for attainment of goals and objectives of company for another
country. BA has the ability of reaching market reaching to standardisation and adaption within
the international market. It is highly essential for an international business to take benefits from
both standardisation and adaption by maintaining appropriate level among them (Zipf, 2016.).
Benefit and disfavour of adaptation and standardization
Standardization Advantage - The minimum value aid institution in attracting more clients and also
improvement measure of economy of the states. Brand will be properly managed by modifying
them and making appropriate development by offering them effective limits. The most essential
benefit of standardization is that British Airways can make impressive identity element by
utilising it into Romania market.
Disadvantage - The deficiency of adaptation in various marketplace and always
modification in industrial structure. There are piteous qualities of services and products which is
offered to their clients in the several sector. Deficiency of uniqueness among goods is another
liability for the institution.
Adaptation Advantage – An institution has to respect the sellers of local market and satisfying the
needs and wants of the customers by acquiring the major market area. This enable them
to build strong image in the Romania and acquire market share by attracting large group
of customers(Strauss, 2016) .
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Disadvantage – Higher income can be spent and more can be consumed by applying the method
of adaption. Product is being launched in inappropriate manner. By utilising adaptation, it is hard
for the organisation is to determine real needs and wants of user.
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4Ps of Marketing Mix
Product: Under this, for attracting customers in Romania the company should need to
consider the product or services that being sold by the company such as after-sales service,
warranties and servicing. The choices that the company should given to their customers such as:
Types of tickets such as one way, return or standby
Types of seats such as first class, business class, economy
Food they offer such as vegetarian or meat or Romania Culture food can also be
presented.
Entertainment such as film, radio, video games etc.
The company should need to market these services in order to attain loyal customers as well as
attract new customers of Romania. Some services the company provided have physical aspects
such as airline tickets, insurance policies etc., whereas mostly services they offered are in the
form of electronic. The company should need to update their services in order to develop a brand
name as it makes money. Therefore the company should need to focus on marketing of their
products and services in order to build brand image of their company.
Price: It refers to the decision relating to the charging prices on their products and
services they offered to their customers and new customers which will be linked when services
will be started in Romania. Pricing strategy plays a crucial role in retaining loyal customers and
attracting new customers. It is essential for the company to communicate with the customers
with respect to the quality services they offered at less price than their competitors. They should
need to use promotional and geographical pricing strategies in an occasional manner. Therefore
the manager of British Airways should need to consider the demand for the products and
implement pricing strategies as per the GDP and per capita Income. For example during Fusion
Festival they should need to provide discount, cashback offers etc. in order to attract large
number of customers (Blattberg and Deighton, 2010). For example British Airways commit to
their customers that if the customers book ticket at BA.com and find that are charging high
prices on their ticket than their competitors then they can refund all the differences, even if they
book tickets online. Through implementing such pricing strategies the company can gain lots of
different types of people and keep their high standards.
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Place: Place refers to distribution of products and services from producers to end users.
Most of the goods are sold through intermediaries therefore marketers should need to consider
the type, size and location of retailers as well as training of retail staff. Due to large number of
competitors the company should need to sell their services directly to the consumers through
telephone and the internet. This helps the company to reduce costs as there is no involvement of
retailers and helps in bringing organisation closer to their customers. For example British firstly
used to sell their services through travel agents but now they have option to sell their services
directly through their website in Romania. (Principle of marketing. 2017).
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Promotion: British airways should need to implement promotional strategy such as
providing special flight tickets at reasonable prices for special occasions. They should need to
avail different kinds of vouchers and discounted coupons for their customers. In order to retain
loyal customers and attract new customers in Romania the British Airways company should need
to take help of electronic and print media such as television channels, internet, magazines etc.
where they can make active and catchy advertisements relating to the promotional offers they
provide. British Airways also need to sponsor public events such as music festivals in stadiums
in which they are given money to promote a brand and use the logos (Allyson Dooley, Jones and
Iverson, 2012). Promotional activities also taken place through social media, promoting deals,
services and products. British airways also promote their brand through offering reasonable deals
for its customers. For example the company offers passengers vouchers named “Christmas gift
vouchers” this will help the company to attract new customers towards their company for
travelling purpose.
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CONCLUSION
From the above report it can be concluded that various products and services are being
promoted with the help of marketing in the marketplace. In order to enhance the performance
level of company, specific tools are being used and among them most important is marketing
principles. Marketing and promotional events are not only centralised towards increasing the
scope of product in customers but also increase the level of faith and competency. Cleavage of
customers and generating consumer attraction depends upon fair and impressive presentation of
product in market. British Airways is one of the airline industry which is delivering class and
quality services in Romania. Marketing and promotional tactics are used in very dynamic manner
in this organisation. It provides multiple ranges and option of services to customers. It is
controlled by British government. There are some marketing and advertisement tactics are
defined in this report. How marketing mix and product analysis used in British airways are
elaborated in this context. Global marketing strategies and plans with disadvantage and
advantages are discussed in this report. This report provides a brief idea of marketing and
promotional dynamics in respect of British airways.
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REFERENCES
Books and Journals
Dann, S., 2010. Redefining social marketing with contemporary commercial marketing
definitions. Journal of Business Research. 63(2). pp.147-153.
Cătoiu, I., Vrânceanu, D. M. and Filip, A., 2010. Setting fair prices–fundamental principle of
sustainable marketing. Amfiteatru Economic. 12(27). pp.115-128.
Kubacki, K. and et. al., 2015. A systematic review assessing the extent of social marketing
principle use in interventions targeting children (2000-2014). Young Consumers.
16(2). pp.141-158.
Smith, A., 2012. Introduction to sport marketing. Routledge.
Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.
Liu, S. T., 2012. Solution of fuzzy integrated production and marketing planning based on
extension principle. Computers & Industrial Engineering. 63(4). pp.1201-1208.
Marimuthu, M. and et. al., 2010. Islamic banking: selection criteria and implications. Global
Journal of Human-Social Science Research. 10(4).
Biswas, A. and et. al., 2013. Consumer evaluations of sale prices: role of the subtraction
principle. Journal of Marketing. 77(4). pp.49-66.
Laczniak, G. R. and Murphy, P. E., 2012. Stakeholder theory and marketing: Moving from a
firm-centric to a societal perspective. Journal of Public Policy & Marketing. 31(2).
pp.284-292.
Christopher, M. and Peck, H., 2012. Marketing logistics. Routledge.
Zipf, G. K., 2016. Human behavior and the principle of least effort: An introduction to human
ecology. Ravenio Books.
Strauss, J., 2016. E-marketing. Routledge.
Blattberg, R. C. and Deighton, J., 2010. Manage marketing by the customer equity test. In
Perspectives On Promotion And Database Marketing: The Collected Works of Robert
C Blattberg (pp. 205-213).
Allyson Dooley, J., C. Jones, S. and Iverson, D., 2012. Web 2.0: an assessment of social
marketing principles. Journal of Social Marketing. 2(3). pp.207-221.
Online
Principle of marketing. 2017. [Online]. Available through:
<https://toughnickel.com/industries/PrinciplesofMarketingPart1BasicConceptsandFun
damental>
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