Strategic Marketing Plan of Emirates Airlines

This project report outlines the strategic marketing plan for Emirates Airlines, including external and internal analysis, PESTLE framework, Porter's five forces analysis, SWOT analysis, and marketing tactics to overcome challenges.

Running Head: STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Name of the Student
Name of the University
Author Note

1STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Executive Summary
The project report outlines the strategic marketing plan for Emirates Airlines. It aims at
analysing the position and performance of the company through external and internal analysis.
The PESTLE Framework is used to analyse the external environment. Porter's five forces model
is also used for environmental analysis. SWOT analysis is formulated using both the internal as
well as external factors. The strategic decisions are discussed along with several marketing
tactics to overcome the challenges faced by the company.

2STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Table of Contents
Introduction......................................................................................................................................3
Discussions......................................................................................................................................4
Audit............................................................................................................................................4
PESTLE Analysis:...................................................................................................................4
Porter’s Five Forces Analysis:.................................................................................................5
SWOT Analysis:......................................................................................................................7
Assumptions................................................................................................................................8
Objectives....................................................................................................................................8
Strategic Direction.......................................................................................................................9
Tactics........................................................................................................................................11
Budget........................................................................................................................................12
Implementation..........................................................................................................................13
Summary....................................................................................................................................14
Conclusion.....................................................................................................................................15
Reference:......................................................................................................................................16

3STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Introduction
The project aims to include the strategic marketing plan of Emirates Airlines in three
years. The report states the external and internal environment in which the company is operating
in the current scenario. It uses the PESTLE analysis to determine the factors that have an impact
on the external environment of the aviation industry as a whole. The Poster’s Five Forces Model
defines real competition within the aviation industry. SWOT Analysis is formulated using
environmental analysis. The report states the marketing mix tool used to evaluate the marketing
objectives in the target market. It highlights the mission and vision of the company to take the
strategic direction. It includes the marketing tactics along with the potential risks and the budget
for the implementation of the strategic plan. The challenges faced along with some
recommendations are also discussed in the report.
Today, the Aviation industry is considered as the essential industries in the world because
it helps in supporting the globalisation and internationalisation for many businesses and
industries spread across the globe. Emirates is the fourth largest airline in the world situated in
Garhoud Dubai, United Arab Emirates. It is the subsidiary holding of The Emirates Group, a
wholly owned corporation of the government. It was founded in the year 1985. Tim Clark is the
president, and Sheikh Ahmed bin Saeed Al Maktoum is the chairperson and the chief executive
officer of Emirates Airline. The airline has a strong presence in the Middle East region with 3600
flights operating weekly in 85 countries with 161 destinations across six continents from its
airline hub in Dubai (Maceda 2018). The fleet size of Emirate is 254 which consists of the
Airbus A380, Airbus A330neo, Boeing 777 and Boeing 777X (Marvel 2019). Emirates
SkyCargo undertakes cargo activities. Emirates Airline is the fourth largest in terms of carrying
international passengers and the second largest in kilometres flown for freight. It is the fourth

4STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
largest in terms of scheduled revenue flown by the passenger (Airliners.net 2018). The different
countries in which the airline operates the most are the United States, India, the United Kingdom,
Australia and Pakistan. The income generated by this airline was US$ 62 million in 2018 (Lucky
2018).
Discussions
Audit
PESTLE Analysis:
The PESTLE framework helps in accessing the actual performance of the company in the
external environment at a particular time and working strategically for taking quick decision.
These factors are as follows:
a. Political: The aviation industry is easily affected by political changes. Situations such as
the wars or the economic circumstances prevailing in the country. Emirates Airlines is
abode by the rules and regulations of the UAE government and signed agreements with
several countries (Matias 2016). Emergencies such as wars and terrorism may affect the
service not only in the home country but also in the whole world.
b. Environmental: The environmental changes are the primary concern for the airlines'
industry. The sudden change in weather and the climatic conditions affect the service
credibility of the airlines (Do 2017). Hence, strategies need to be followed for excellence
in service. These issues might affect the operations of the airline business. The climatic
conditions in the UAE are warm and dry, so the airlines do not face any environmental
problems in the home country.

5STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
c. Social: The social factors include the taste and demand of the people. These changes will
encourage particular threats and affect the company's service. The different factors
mainly include changes that occur demographically (age, regions. statics of working
employees) and changes in the number of population. Increase in population will lead to
increased airline profits as there will increase the number of people travelling to other
countries (IMF 2018).
d. Technological: Advanced technological innovation is well recognised and widely used
by Airlines. The continuous change in the products and services will help in competing
with other airlines. The latest innovation and trends will attract people, and it will
encourage passengers to use technology integrated services. The security system at the
airport uses the powerful and advanced technology (Sabre.com 2017).
e. Legal: The legal factors include the rules and regulations of the country. The
modification in the statutory factors affects the company's revenue. These airline
regulations and policies will allow the company to be cautious in the local as well as the
international dealings (Shaw 2016). The legal environment will ensure that the journey is
safe and secure for the passengers. It varies from country to country depending on their
laws and policy.
f. Economical: The economic factors affect the demand forecast, capital availability and
the profit margin. The favourable economic condition will help in the growth and
investment in the business for earning the profit. Money is considered an essential source
for the development of modern airports along with the best and well-equipped airports
(Holloway 2017). The UAE government is investing a massive amount of money for the
development of the two main airports in Abu Dhabi and Dubai.

6STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Porter’s Five Forces Analysis:
Michael Porter develops Porter's five forces model. It helps in evaluating the market
situation and financial performance of the company and shows whether it is profitable to invest
in the concerned company or not. It is designed to analyse the strategic approach followed by the
competitors in the present scenario. The five forces are as follows:
a. Bargaining Power of Buyers: It ultimately, depends on the price offered for the
services. The buyers wanted to avail the best offerings at the lowest price available
(Arshed and Pancholi 2016). Today, there is a massive competition in the aviation
industry worldwide, and therefore, the consumers have several options to choose from
national or international routes. Therefore, if the requirements such as price and quality
standards of the buyers are not fulfilled, they can easily switch to other aviation services.
Hence, it is high.
b. Bargaining Power of Suppliers: It is high in this airline sector. The aircraft is the main
product of the aviation industry, and only two major companies are manufacturing the
aircraft Airbus and Boeing. For Emirates, they are the prime suppliers and faces high
competition among themselves.
c. The threat of New Entrants: It is low in this airline sector as the entry barriers are high.
It requires a considerable capital investment to purchase the aircraft and enter the airline
sector (Hellgren 2018). Thus, it is difficult for any new players to enter the market and
gain a competitive advantage.
d. The threat of Substitutes: It is high since there are two segments offered by the airline
industry in the travel category such as luxury and economy. There is a considerable price
difference between them, and thus, passengers prefer the economy classes for travelling a

7STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
shorter distance. As a result, this lowers the profit of Emirates, which offers luxury
flights.
e. Competitive Rivalry: It is very high, as there is a large number of flights operating on
the same routes from different airlines. There is competition in the price, services offered
and several offers to increase sales (Doğan, Dilan and Aydın 2019). There are around 37
competing airlines flying in and from Dubai.
SWOT Analysis:
The performance of Emirates Airlines is identified both by internal as well as external
environmental factors. The Strength and the Weakness are the internal factors of the company
whereas the Opportunities and the Threats are the external factors. They are discussed below:
Strength: Thesubstantialg financial help is provided by the Dubai government for increasing the
capital of the Emirates. The strong airline hub in Dubai provides access across Asia and Europe
to Emirates Airlines. Theabundanth presence of oil within the Gulf States, there is a minimum
hassle forthehaircraftt too retrieve oil. It has a strong workforce network of 64,768 employees as
of 2017 withan extensivee presence over 161 destinations in 85 countries (Emirates, 2017).
Weakness: Emirates Airlinesfaces competition withhaa limited share in the global market. The
airlines rely massively on the onward moving traffic internationally (O’Connell and Bueno 2018)
.Thebenchmarkk set for the maintenance of the Emirates Aircrafts is very high due to regular
skills upgrading and continuous innovation.
Opportunities: Airlines should look for opportunities to increase its revenue by operating flights
in new aswell ass anemergingg market in the international routes. By continuous innovation and
in-built advanced technology in the aircraft will enhance consumer awareness about the airline

8STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
(McKenna 2018). It should focus on sourcing new businesses groups and industrial zones to tie-
up for the flight service.
Threats: Therise inn thepricee of the fuel will have an impact on the profit of the airline. There
are competitors such as Fly DubaiWhosee operating cost carrier is low as compared to Emirates
Airlines. The modification in the government rules and regulations can hinder the operations of
the airline (Redpath, O'Connell and Warnock-Smith 2017).
Assumptions
Economic and Political: Assumptions to bemade thattthee economy i sstably as wel las
thepoliticall environment .Theairlines's rules and regulations must be abiding by the government
of the UAE (Wall and Parasie 2018) .Thefavourablee economic condition to forecast demand,
capital availability and profit margin will help in the growth and investment in the business.
Technological: Assumptions to be made oftechnicall feasibility or its rate of success in the
market. Continuous innovation will improve the services in relations to other airlines. Follow the
latest trends to attract the people that will encourage passengers to adopt the new technical
services integrated.
Competitive Factors: Realistic as well as conservative assumptions to be made regarding the
stability of price. Take theamounte that is suitable both for competing and gain profit out of it in
the market.
Customer: Assumptions about the customers’ tastes, preferences, perceptions, needsand
purchasinggbehaviourr requires attention by conducting a survey using the social media
presence. The company has formulated a global marketing strategy for representing itscustomers
attaa global level.

9STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Resources: Assumptions regarding the availability and engagement of thecriticaly talents of the
airline sector to build healthy relations with the customers should be taken care of.
McKinsey 7S
McKinsey 7S model is being used as an effective tool for managing the organizational
designing process (Mitchell, Fredendall and Cantrell 2015). In the year 1980, the 7s Model was
developed as the popular strategic planning tool that promotes the human resources for driving
the positive organizational performance. Based on the 7 key elements the strategic model has
been introduced in which structure, strategy, skill, staff, systems, style and values are included.
In case of facilitating the organizational changes the7s model plays an important role by bringing
the new strategies (Ravanfar 2015). On the other hand, in case of ensuring the sustainability as
well as positive growth in the company. Analyzing the organizational structure in Emirates, it
has been identified that the company follows hierarchical structure for maintaining its
operational standard. In case of comparing with others organization, it can be said that leadership
practices in the workplace can be considered as the important strength of its infrastructure.
Analyzing the corporate strategy adopted by Emirates, it can be said that the company mainly
focus on targeting the premium customers in the market, however by expanding its target market
cost effective packages have also been provided by the company. In terms of ensuring the
standard quality of services for gaining competitive advantage, highly efficient employees have
been appointed in the company (Cox, Pinfield and Rutter 2019). On the other hand, reducing
turnover rate the company maintains the employment standard policies. Analyzing the
operational system adopted by the company, it cannot be denied that through the rapid
innovation and creativity, the company aims to enhance its customer base. Effective leadership
practices are being considered as the important element in case of ensuring the positive

10STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
organizational culture. In case of Emirates Airline, it can be said that the motivating the
employees in the workplace friendly environment is being maintained in the company.
Examining the value of Emirates, it has been identified that the company aims to provide
standard quality of service to the customers for sharing the wonderful flying experience.
Objectives
1st year strategic plan
 To expand its market by starting flights on new destinations in different countries
2nd year strategic plan
 To ensure the standard quality of service for increasing the sales revenue 5%
 To achieve the return on investment on the market by introducing the low cost carriers
for increasing the market share 3%
3rd year strategic plan
 To bring the innovation and creativity by developing the IT operations for evaluating
customer satisfaction
Strategic Direction
The Emirates Airline is the largest airline in the middle east operating across six
continents (Odeh, Nair and Katz, 2018). The marketing strategy of the airline is explained with
the help of Marketing Mix Model 4P's (Product, Price, Place, Promotion). It tells the different
approaches used by the company that defines its brand image.

11STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
1. Product: The product portfolio of the Emirates airlines comprises of a mixed fleet of
such as the Airbuses and the wide-body aircraft, Boeing. For maintaining its competitive
standards and operational legacy, the company always have the eaeroplaness of the most
significant size. Excellent and consistent services have contributed to the fast
development and income. It caters to its customers both personally and professionally by
providing services at three different level sthatincludes the first class, the business class
and the economy class. The premium level comforts are offered in the first class such as
the adjustable seats can be converted to flat beds, minibars, a storage facility for privacy
as well as a security concern. It is the first airline that provides shower on the flights and
the private suites. It offers separate USB as wel lsaa point for laptop charging. It includes
entertainment option sandaa variety of food items. Itprovidess the housing facilities and
healthcare services to its representatives and staffs (Devasia et al. 2016). Hence, inthis
waya,y it tries to keep both the customers and the representatives satisfied with its
service.
2. Price: The Emirates serves the tickets at the lower costtoo have a competitive advantage
over other airlines, as Dubai is theprimaryr hub between east and west. The pricing
strategy varies in the marketing mix of this airline. I thasassistedtaa reasonable price for
the shorter distance without the layover. With the effective low pricing strategy for direct
and shorter routes, the airline hires staff sataa lower cost that helps in reducing the price
of its fares. The airline also adopts the dynamic pricing for attaining the flexible pricing
strategy for the seats by imposing the highest price for each seat and the gain the
maximum profits out of it. The customer need is identified with several otherneeds

12STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
thattcaters to financial statuses. The premium pricing strategy is adopted by the airline for
its first class customers tomeet theirrcustomisedd and luxurious demands of service.
3. Place: Emirate sairlinesoperates in the Middle East region with 3600 flights operating
weekly in 85 countries with 161 destinations across six continents from its airline hub in
Dubai. The airline is renowned for its long routes, but the customers can also benefit
from its new short routes. The airline has entered the new market as of its fleet size. It has
adopted the distribution strategy through tour operators and travel agencies. The airlin
ehasane online website through which all processes, like ticket bookings, cancellations,
flight rescheduling other information can be availed.
4. Promotion: Emirates Airlines have a competitive promotional strategy that is note-
worthy and attractive. Various promotional activities include advertisement through
newspapers, magazines, radio, television, websites, etc. The company sponsorsmultiples
famous sports such as football, rugby, tennis, horse racing, motorsports, golf and cricket.
It sponsored the ICC cricket world cup in 2011 and 2015 to reach millions of its
customers (Emirates 2019). It also offers promotional discounts and seasonal pricing at
affordable rates to attract tourists from different parts of the world to Dubai. The airline
has some successful campaigns, ‘Hello Tomorrow' and ‘The Kids Go Free', where the
tickets, meals and the accommodation provided tothe kids's weres free. Emirates Airline
Foundation provides funds to various countries without geographical boundaries in
difficult situation (Goodson 2017). It should focus on strengthening the social media
marketing for improved customer interaction.
Tactics

13STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Emirates Airlines needs t adopts several marketing tactics for enhancing the performance
and profit of the company. It should adopt digital marketing tactics to strengthen presence
through social media. The integration of artificial intelligence and the chat-bots will help in
reducing the time for response and provide alternative solutions for productive customer
relations (Sutton, 2018). In order to enhance customer interaction, it should launch the chat-box.
It should adopt the tactics of market campaigning through social media for humanizing the
brand. Create blogs for the company’s website that will not only attract the people to visit
frequently. Incorporate in-flight entertainment perks to the customers’ seats with features like
current TV shows, news, movies and sports.
Target market
Following the diversified targeting strategy the three years strategic plan of Emirates Airline will
target the middle class and upper middle class customers from the demographic segment. Based
on the geographic segment, people who live in urban area will be targeted by the company. On
the other hand, based on the psychographic segment, the price sensitive customers will be
targeted by the company.
Budget
Marketing Budget
Particulars Month 1 Month
2
Month
3
Month 4 Month 5 Month 6
Salaries 15000 28000 41000 54000 67000 80000
Accommodation 13000 13000 13000 13000 13000 13000

14STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Newspaper advertisement 11000 12000 13000 14000 15000 16000
Magazine advertisement 9000 10000 11000 12000 13000 14000
Travel 7000 8000 9000 10000 11000 12000
Television Advertisement 5000 6500 8000 9500 11000 12500
Publicity 3000 5000 7000 9000 11000 13000
office equipments 1000 2000 3000 4000 5000 6000
Radio Advertisement 3000 5500 8000 10500 13000 15500
Events 4000 6000 8000 10000 12000 14000
Victimofs Welfare 5000 7000 9000 11000 13000 15000
Training and Education 25000 28000 31000 34000 37000 40000
Volunteer Costs 20000 22000 24000 26000 28000 30000
Accountancy Expenses 15000 18000 21000 24000 27000 30000
Website and Social Media 10000 12000 14000 16000 18000 20000
Refreshment 5000 8000 11000 14000 17000 20000
Sports Sponsorship 11000 12000 13000 14000 15000 16000
Telephone Costs 1500 2000 2500 3000 3500 4000
Energy Expenses 1000 1700 2400 3100 3800 4500

15STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
Contingency Costs 800 1200 1600 2000 2400 2800
Total 165300 207900 250500 293100 335700 378300
Implementation
The marketing strategies for the properexecutionn of the plan for achieving the objectives during
the specified period of three years. They are:
Extension of new routes: By increasing the number of destinations country to serve the potential
market. Thevaste expansion is needed to grow and achieve market development.
Improving in-flight service: Successfully implementing the plan of using the mobiles for
communication, measured in terms of usage of data will help inenhancingg the penetration into
the market.
Budget Airlines: Emirates Airlines is the separate entity of The Emirates Group, so, evaluating
the financial profits through the operating cash flowwill helppmeasureg the performance and
success of the company's business.
IT technology: Development of the airline business by implementing the self-check service to
increase the profit through advanced innovation in Informationtechnology systemsm.
1st year
Goal: To expand its market by starting flights on new destinations in different countries
Activities 1st to 3rd to 5th to 7th to 9th to 11th to

16STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
2nd
months
4th
months
6th
month
s
8th
months
10th
months
12th
months
Research on the area
in which the
requirement is needed

Data collection from
secondary sources
 
Creating a layout for
extended route

Designing a route map
with the details of air
traffic
  
Develop the budget
plan for particular
route development
  
Technical supervisors
needs to be informed
 
Legislative framework
needs to be completed

Formation of draft 
Route will be tested
before carrying
passengers
2nd year strategic plan

17STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
 To ensure the standard quality of service for increasing the sales revenue 5%
 To achieve the return on investment on the market by introducing the low cost carriers
for increasing the market share 3%
Activities 1st to
2nd
months
3rd to
4th
months
5th to
6th
month
s
7th to
8th
months
9th to
10th
months
11th to
12th
months
Understanding the
needs of the
passengers

Training will be done
by identifying the
weak performing
employees
 
Training objectives
will be clarified.

With the help of IT
department, mobile
communication
process will be
improved.
  
Ensuring the customer
satisfaction, budget
friendly flights will be
introduced.
  
Technical supervisors
will be informed for
 

18STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
implementing the plan
Budgeting will be
done

Cost control will be
planned

3rd year strategic plan
 To bring the innovation and creativity by developing the IT operations for evaluating
customer satisfaction
Activities 1st to
2nd
months
3rd to
4th
months
5th to
6th
month
s
7th to
8th
months
9th to
10th
months
11th to
12th
months
Research on the area
in which the
requirement is needed

Data collection from
secondary sources
 
Creating a layout for
extended route

Designing a plan for
improving the self-
checking process
  
Develop the budget
plan for particular It
  

19STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
development
Technical supervisors
needs to be informed
 
Legislative framework
needs to be completed

Formation of draft 
Online monitoring
will be done for
analysing customer
satisfaction
Summary
The key challenges faced by Emirates Airlines are as follows: To develop a new
autonomous vehicle fleet fospecialisedd airport operations. Research and development in the
training methods provided to the cabin crew and bring innovation in theoriginalw form of
learnings.To developpa solutionnfor integratinggpersonalisedd wants and needs of the
passengers. The growth in this airline sector is abouttwo-threeeper centtevery yeara, and thus, it
affects the profitability of the company (Cornwell 2016). The airline will face somestiff
challengessshortlye.
One of the suggestions for the company is to add values to it by enhancing the partners,
agencies and distribution to its subsidiary group to operate separately for gaining benefit thee
collective intelligent system to be used as the information system that segregates the information
to be collected. The operational cost of the company is very high. Therefore, it should focus on

20STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
decreasing the operational cost by controlling themassive investmentssin aircraftt, technologies
and best quality services.
Conclusion
From the above, it can be concluded that Emirates Airlines is the largest airline in the Middle-
east region and the fourth largest across the globe. The external and
internalenvironmentssanalysedd to examine the current scenario where the company is operating.
The PESTLE analysis is used to determine the external factors impact on the environment of the
aviation industry as a whole. Therealg competition among the aviation industry is determined by
Porter's five forces model. Both the external and internal analysis formulates the SWOT analysis.
Several assumptions are taken where the business strategy of Emirates airlines is based on. The
marketin gobjectives ars evaluated using the marketing mix tool in the target market. The
company's mission andvisiononearranalysedd to take the strategic direction. Severaltacticscneeds
to be incorporated to improve the performance and working conditions of the airline. The
challenges andopportunitiese sars discussed along witha few recommendations.

21STRATEGIC MARKETING PLAN OF EMIRATES AIRLINES
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