Successful Marketing for Survival in the Airline Industry

This report discusses the key marketing concepts and strategies used by Air Canada in the airline industry. It explores branding, product strategy, and promotional strategy. It also examines the ethical considerations and daily marketing operations of Air Canada. The report concludes with recommendations for effective marketing in the airline industry.

Successful Marketing for
survival the airline industry

Table of Contents
INTRODUCTION...........................................................................................................................3
2. The Main Body............................................................................................................................3
a) Explain key marketing concepts and terminology applicable to Air Canada.........................3
b) Identify the marketing strategies and programs that helped Air Canada achieve their
objectives. Were these objectives achieved in an ethical manner?.............................................5
c) Explain the marketing concepts and principles used in Air Canada daily organisational
operations: 7Ps and STP..............................................................................................................6
3. Mind map or poster to explain the relationships of the marketing functions to other functional
areas in organisations.......................................................................................................................9
CONCLUSIONS............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
........................................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Airline industry is mainly includes business activities related to transporting of
individuals and freights by taking charges from them in the exchange. Air routes are highly
scheduled in terms of its routes (Abeyratne, 2017). This transportation is done with the usage of
air planes, helicopters etc. The present report is based on Air Canada, one among the biggest
airline company of Canada. The respective company was incorporated in the year 1937 and air
transport services to its customers over 207 destination across the world. Air Canada is also
determined as the key member of Star Alliance network. This network is having total number of
28 members which makes it easier for Air Canada to provide airline services to its clientele in
more than 1320 destinations worldwide.
In order to maintain their strong image among customers, the market leader of this
industry acquires several marketing tactics in order to influence interest of customers towards
them in effective manner. The airline industry believes to acquire technological based marketing
activities in order to approach scale customers and promote their confined services to them for
influencing their interest to make purchase from them effectively. Introduction of technology
oriented marketing is placing major proportion of contribution in the growth of airline industry
as it enhances their demand among customers which increases usage of their services in rightful
manner.
The present report includes detailed description on marketing concepts and principles
belonging to airline sector. It also provides description on several marketing strategies that are
adopted by Air Canada for attaining their corporate objectives. Explanation of interrelationship
between various marketing and business functions will be provided. In the last section of the
project possible recommendation will be provided which will contribute in effectively apply in
marketing concept, strategies and programmes within the organisation's.
2. The Main Body
a) Explain key marketing concepts and terminology applicable to Air Canada
Branding
Branding is termed as the collaboration of several practices as well as activities that are
used by companies for developing their positive image among customers (Akbar, Németh and
Niemeier, 2014). This simply allows company in influencing interest of customers towards them

and also persuade them to make purchase from the same. Incorporation of effective branding
strategy allows company is developing their image among customers in such a manner which
makes it easier for them identify company among the rivalry. With reference to Air Canada, it
can be said that marketing manager of this company focuses on using several hashtag campaigns
with the help of which they can easily develop their strong image among customers. This also
supports company in attracting pool of customers towards services of Air Canada that also
increase their sales performance in significant manner.
Product Strategy
Product strategy is termed as the effective strategy used by business manager for
formulating new product or modifying existing product with additional features by making use
of innovation, advanced technology and creativity (Eaton, 2017). With reference to Air Canada,
it can be said that manager of this company prefers to conduct several market research in order to
identify changing demand and expectation of their customers from their airline industry. As a
result, by making use of this information, the manager effectively develops new services so that
their customer could find new services as per the requirement. This simply supports Air Canada
in enhancing their sales performance which results in the enhancement of market share of the
company in international marketplace.
Promotional Strategy
It is the termed as the specific course of action that is adopted by the company for
enhancing knowledge of its customers about their current and proposed offering. The respective
strategy also allows customers in identify several services which are offered by airline industry
but still common people are not having any knowledge towards the same. In context of Air
Canada, it can be said that the marketing manager of the company focuses on using social media
marketing tool in order to promote its products and services among customer in mass manner.
The respective promotional technique is helpful for the company in developing their relationship
with the customer (Hapsari, Clemes and Dean, 2017). This is because, by using social media it is
easier for marketing manager of Air Canada to communicate their respective mission, vision and
objectives with its customers as well as other associated people. This simply develops strong
relationship among all that directly helps them out in maximising their revenues and increasing
profitability in quicker manner.

b) Identify the marketing strategies and programs that helped Air Canada achieve their
objectives. Were these objectives achieved in an ethical manner?
Air Canada is one among the popular airline which is being used in Canada. The
respective company is having strong brand image among customers which was effectively
developed by entering into Capacity Purchase Agreement with the regional airline entities
(Hussain, 2016). Incorporation of this agreement allows several companies in operation their
work as a airlines in place of Air Canada. In order to maintain its position among customers it is
essential for the company to make use of effective marketing strategy so that they can easily gain
competitive edge and enhance their profitability in effective manner. The overall marketing
overview of Air Canada is described as below in detailed manner:
Mission: “Connecting Canada and the Globe.”
Vision: “Building loyalty through passion and innovation.”
Objectives: The respective management team of Air Canada have formulated several
objective for the year 2019-2020 so that they can work towards it effectively without getting
distracting anywhere else. These objectives are stated as below:
 To enhance approach of entity with 12%
 To attain annual EBITDAR margin of 16-18%. To increase sales performance and profitability of company with the use of social media
campaigns.
Main marketing strategy: The main focus of marketing manager of Air Canada is on
making use of social media marketing campaigns for influencing interest of large scale
customers. Usage of this technological advanced tool helps company in developing their
knowledge on the needs and requirements of customers which directly supports them in satisfy
the same requirement and improvising their business performance effectively at international
place in effective manner.
Ethical Considerations
Every business has its own ethical values, it is essential for the business manager of Air
Canada to take account of safety and security concerns of customers. The company provide
assurance to its customers that all their travel experience will be safe and secure which will
provide them higher satisfaction level (Karatepe and Choubtarash, 2014). Along with this, it has

been determined that all activities of Air Canada are performed in ethical way which directly
keeps them away from legal issues.
c) Explain the marketing concepts and principles used in Air Canada daily organisational
operations: 7Ps and STP
Marketing concept is the inclusion of several concepts as well as principles which are
incorporated within the company that supports in accomplishment of marketing goals and in
quicker and rightful manner (Kleymann and Seristö, 2017). With reference to Air Canada,
marketing manager of this company applies several principles and concept in order to attain
attention of larger proportion of customers in effective manner. The main principle applied
within this Air Canada are STP and 7Ps model. These frameworks are explained below in
detailed manner.
Marketing Mix (7Ps)
Marketing mix is termed as the effective model used by analysing 7 areas of company in
order to develop effective strategy. With context to Air Canada, 7Ps marketing mix is applied
with the company for developing effective marketing strategy. All 7 elements of this model are
explained as below in detailed manner:
Product:
Product refers to the basic offering of company that is provided to customers in the
exchange of money. Portfolio of Air Canada includes vast range of products such as Air Canada
Vacations, Air Canada Rouge, Air Canada Express, Air Canada Jetz, Air Canada Cargo etc.
Apart from this, the respective airline company also offers Maple Leaf Lounges across the world
which provides additional benefits in terms of complimentary to clients who travels via platinum,
gold member list, elite and business class (Lawton, 2017). In addition to this, the respective
company also conducts frequent flyers program according to which customers can gather and
spend points while making use of services offered by the company in effective manner.
Price:
Air Canada provides its services to its client at lowest range. The respective company
also provides promo code which gives benefit $50 to its clients at the time of buying ticket lower
than the benefit of promo code. This initiative taken by the company is considered as an effective
one that supports them in establishing loyal customer base for Air Canada. As a result, it can be

said that it is easier for the company to increase their sales performance effectively as customers
are making purchase from this company at regular basis.
Place:
The respective airline company is headquartered in Montreal in Quebec. Also, it primary
hubs are established at Toronto, Montreal, Calgary and Vancouver. The overall offering of Air
Canada are served to its customers in approx 185 locations belonging to 6 continents.
Promotion:
Air Canada effectively make use of several promotional activities for influencing interest
of customers towards them in such a manner that maximises their profitability in rightful
manner. The company is making use of social media platform that is linked with the personal
application of company (Mohtasham, Sarollahi and Hamirazavi, 2017). The marketing manager
of Air Canada also runs hashtag campaigns at social media which grabs attention of customers
effectively towards them. Some of the popular marketing campaign used by this company are
“Hello / Goodbye”, “You and I were meant to fly” etc. These campaigns have directly drawn
attention of large scale customers that have resulted in the quick increase in sales performance as
well as profitability of the company in quicker manner.
People:
Air Canada consider customers as its core people. The main reason behind this is its
belongingness in the hospitality sector. Thus, it is important for the company to focus on
satisfying its customers by providing them higher quality of products and services. In order to
satisfy these customers in better manner, the respective manager of this company provides
training to its existing workforce in order to develop their skills and make them aware about
changing demand of customers (Taneja, 2016). This knowledge directly supports employees ion
modifying their existing working activities according to the core requirements of the customers.
Along with this, manager of Air Canada also takes regular based Feedback from employees in
order to gain knowledge on their personal advices for company so that they can incorporate all
suitable advices and attain success in quicker manner.
Process:
The company effectively make use of easy process which allow customers to book their
tickets with the usage of mobile application and official website of company.
Physical Evidence:

The respective company has implemented rebranding of entity in order to provide
confidence to employees that they are working in soothing working environment which safe for
all (Vellas, 2016). It can be said that satisfied customers and their effective working pattern
attracts larger number of customers towards them that directly provides huge business to them in
the near future.
STP Model
In marketing STP basically stands for Segmentation, Targeting and Positioning. It is
determined as the effective strategic approach used by business associations in modern world
marketing. In context of Air Canada, it can be said that marketing manager of this company also
applies this model for executing its marketing aim in strategical manner. All three elements are
explained below with the relation of Air Canada:
Segmentation: Marketing manager of Air Canada has Segmented its market on the basis
of demographic segmentation (Taneja, 2017). This basically includes gender, income, age,
occupation etc.
Targeting: In the demographic market, marketing manager of Air Canada have
significantly targeted its potential customers on basis of age (18-35 years) and Income (annual
income between the range of $21,000- 45,000).
Positioning: In order to influence interest of proposed targeted customers, marketing
manager of Air Canada formulates specific marketing strategies so that they can easily position
their brand image among customers in positive manner. The respective company specifically
make use of social media marketing method for approaching maximum number of customers and
spreading awareness about their products and services to them. Apart from this, the manager also
make use of hashtag campaigns at social media in order to interact with huge range of people at
the single time.

3. Mind map or poster to explain the relationships of the marketing functions
to other functional areas in organisations.
CONCLUSIONS
From the above discussed report, it is comprehended that marketing is considered as the
effective activity that is helpful businesses in improvising their business performance and
attaining their proposed objectives in quicker manner. With reference to airline industry it can be
said that marketing manager of this respective sector are required to emphasise on using
technological based activities for influencing interest of customers. Usage of STP model has
supported company is finalising their targeted audience and developing effective strategies to
position their respected product in front of them effectively. Promotional strategy, branding and
product strategy area determined as some of common marketing concept that contributes in
boosting up the performance of airline industry in effective manner. Along with this, it has also

been identified that marketing department is interrelated with other business function of
company whose collaboration directly supports them out in attaining their respective goals and
objectives in provided time frame.
RECOMMENDATIONS
Based on the overall information, there are few recommendation provided to Air Canada
for the further improvement and business growth. Some of important recommendation are
described as below in effective manner:
 At first it is recommended to Air Canada to make use of several tactical marketing
strategies like sales promotions, social media and advertisement and others in order to
influence of customers and make them purchase from the same company effectively
(Wensveen, 2018). These marketing activities will allow customers in developing their
knowledge about affordable prices of tickets and other low cost services. This awareness
results in the increase in sales performance as well as profitability of company. This
directly provides higher contribution in enhancement of market share of company at
international marketplace.
 At next, it is recommended to marketing manager of Air Canada to go for Web Analytics,
an effective marketing approach that is used by businesses in influence interest of
customers and boost up their revenue generation figures in effective manner. Usage of
web analytics will allow company in checking out behaviour of customers in terms of
statistical data and traffic over their official website. As a result, they will be able to take
respective measures for improvising their performance in rightful manner.

REFERENCES
Books & Journal
Abeyratne, R.I., 2017. Aviation trends in the new millennium. Routledge.
Akbar, Y., Németh, A. and Niemeier, H. M., 2014. Here we go again… the Permanently Failing
Organization: An application to the airline industry in Eastern Europe. Journal of Air
Transport Management. 35. pp.1-11.
Eaton, J., 2017. Globalization and human resource management in the airline industry.
Routledge.
Hapsari, R., Clemes, M. D. and Dean, D., 2017. The impact of service quality, customer
engagement and selected marketing constructs on airline passenger loyalty. International
Journal of Quality and Service Sciences. 9(1). pp.21-40.
Hussain, R., 2016. The mediating role of customer satisfaction: evidence from the airline
industry. Asia Pacific Journal of Marketing and Logistics. 28(2). pp.234-255.
Karatepe, O. M. and Choubtarash, H., 2014. The effects of perceived crowding, emotional
dissonance, and emotional exhaustion on critical job outcomes: A study of ground staff
in the airline industry. Journal of Air Transport Management.40. pp.182-191.
Kleymann, B. and Seristö, H., 2017. Managing strategic airline alliances. Routledge.
Lawton, T. C., 2017. Cleared for take-off: Structure and strategy in the low fare airline business.
Routledge.
Mohtasham, S. S., Sarollahi, S. K. and Hamirazavi, D., 2017. The effect of service quality and
innovation on word of mouth marketing success. Eurasian Business Review. 7(2).
pp.229-245.
Taneja, N. K., 2016. Airline Industry: Poised for Disruptive Innovation?. Routledge.
Taneja, N. K., 2017. Airline survival kit: Breaking out of the zero profit game. Routledge.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Wensveen, J., 2018. Air transportation: A management perspective. Routledge.