Comprehensive Marketing Report: Air Canada's Strategies and Concepts

This report provides a comprehensive analysis of Air Canada's marketing strategies and concepts within the airline industry. It begins with an introduction to the airline industry and Air Canada, highlighting its significance in the Canadian market. The main body delves into key marketing concepts applicable to Air Canada, including product strategy, branding, promotional strategies, and societal marketing concepts. It examines the marketing strategies that have contributed to Air Canada's success, such as product and promotion strategies, sales, and advertising, emphasizing both traditional and modern forms. The report also discusses Air Canada's social responsibility, focus on safety, and customer-centric approach. Furthermore, it explores the marketing concepts employed by Air Canada, specifically the 7 Ps of the marketing mix (product, price, promotion, place, people, process, and physical evidence) and the STP strategy (segmentation, targeting, and positioning). The report concludes by summarizing the key findings and insights into Air Canada's marketing practices.

Marketing

Table of Contents
Marketing.........................................................................................................................................1
MAIN BODY...................................................................................................................................3
Key Marketing Concepts applicable to Air Canada....................................................................3
Marketing strategies that helped Air Canada to ..........................................................................4
Marketing Concepts that are being used in Air Canada .............................................................6
CONCLUSION ...............................................................................................................................8
REFERENCE.................................................................................................................................10

INTRODUCTION
Airline industry that provides services of air transportation to its customers and for this
purpose airlines use aircraft to transport passengers and freight. This report discusses about
marketing and its functions and factors associated with marketing. For the same purpose Air
Canada has been included in this report to discuss its marketing functions and factors that are
associated with its marketing. The Biggest airline of Canada in terms of fleet and passengers, Air
Canada was founded in 1937 and is headquartered at Montreal, Quebec. The company have
employed more than 30000 employees and earns a revenue of more than 18 billion Canadian
dollar. Fleet size of Air Canada is around 189. In context with its marketing it can be said that
As, the market is changing from sellers' market to buyers' market, importance of marketing is
growing day by day and airline industry is no exception for this. Due to increasing competition
on the basis of price and quality of service it has become very important that airlines focus its
marketing function so that they can achieve their objectives in the most effective manner. To
discuss marketing of Air Canada this report firstly include concepts and terminology being used
in Air Canada and later discuss strategies of Air Canada for marketing and lastly include
concepts of marketing like 7 P's and STP.
MAIN BODY
Key Marketing Concepts applicable to Air Canada
Marketing concept refers to philosophy concerned with marketing. There are various
concepts of marketing and key concepts that are applicable to Air Canada are as follows-
Product strategy- This strategy is concerned with design and development of product and
quantity and quality being provided by the company. Variety of the product mix on the basis of
price is also covered in product strategy. Air Canada being a airline needs to include its services
in its product mix. This services of Air Canada includes Scheduled and chartered travel for
passengers (Chen and et.al., 2017). Air Canada's flights and travelling services serves more than
200 destinations. Air Canada has divided its operation department in 4 parts on the basis of
services being provided by them these include Air Canada cargo, Air Canada express etc. other
offerings of Air Canada includes cargo service, domestic airlines, charter airline services, low
cost airline, Air Canada vacation aeroplane that provides services for vacation.
Branding- Branding means actions taken by companies in order to increase its value in
customers mind. Actions undertaken to build brand value that customers consider for a product

in relation with price being charged for the product and value that is being provided by the
product in comparison to prices being charged by the competitor and value that is being provided
by the competitor (Keller and Brexendorf, 2016). Branding helps businesses to stand out in
competition as customers value products of a company that is one of the important success factor
for any company and for Air Canada as well. Discussing branding of air Canada it can be said
that company has employed various strategies to create its brand and recent effort was to change
its brand and design of the brand as this is one of the most important factor which create identity
of the brand.
Promotional strategy- Promotional strategies includes strategies that are employed by
companies to promote its product and increase its visibility in audience and hoe company chose
to address its audience to purchase products of the company. This is very important aspect of
marketing of a company. Air Canada also employs various strategies for its marketing these are
Advertisements in traditional and modern form. Traditional advertisement consist of print
advertisement in newspaper and on TV as commercial advertisement. These are very effective
form of advertisement and are able to communicate message of the company to a large number
of audience at single attempt (Allegranzi and Pittet, 2017). Modern form of advertisement that
consist o digital-marketing and social media marketing. These are very effective in increasing
visibility of the brand to all those who are active on various social media sites. These marketing
strategies are not only effective in promoting brand but are also very cost friendly as the cost
incurred in this type of romotion is very less in comparison with traditional advertisement.
Societal marketing concepts- Relatively new concept of marketing this concepts considers
producing and selling goods that are required and needed to customers. This also includes
providing products of better value than competitors of a company. This concept base itself on
well-being of customers and society. Most of the companies including Air Canada follows this
concept and product strategy of Air Canada that divides its services in 5 classes is also based on
this concept so that they can provide services to all its customers as per their requirement.
Marketing strategies that helped Air Canada to
Mission of the air Canada states that it want to connect Canada to world. Vision of the
Air Canada states that they want to build loyalty through passion and innovation. Air Canada
also focus on few other aspects that are focus on safety, company's first and foremost focus is on
safety. Other important consideration of the airline is that their customers feel valued and

satisfied. Air Canada along with their customers also focus on their internal people that are its
employees and have an objective of working with integrity and main factor behind success that is
innovation and company want to focus on personal and corporation growth along with and keep
an objective of getting next level of innovation, service and quality. To achieve these objectives
and objectives of ever growing and getting to next level of success have been achieved by the
company through employing strategies like-
Product and promotion strategies have been discussed earlier this context seeks to discuss
strategies like advertisement and offers in form of sale and low price of tickets have been used
by Air Canada.
Sale- This strategies is used by the company on a very usual basis. This strategy includes
reducing price of the freights and tickets. It includes offering various different services to the
regular customers of the airline (Kingsnorth, 2019). This strategy is generally employed by the
company when customers are less likely to travel this time is also known as off-season. The
strategy and sale probe customers to travel as company has reduced prices of ticket or company
is offering some extra and better services at regular price.
Advertisement- Most important tool of marketing, advertisement seeks to get attention of
audience and customers and provide them information about company's offerings. Companies
when they are well-known seeks to increase its visibility and highlight the value they are
providing to its customers in for the price that are being paid by the customers. Air Canada have
a mixed strategy for advertisement it uses both old and new form of advertisement. Old forms of
advertisement includes publishing information in newspaper and releasing content through TV
advertisement. On the other hand new form of advertisement includes digital media marketing
and social media marketing. Digital media marketing uses internet and websites to advertise
about the product. In this, companies collect data about individuals choice and preferences, this
data is availed from alliance and collaboration of more than one website and network. Most basic
form to understand this is that when a customer is looking for a flight to a particular destination,
randomly an advertisement appears on screen from Air Canada addressing availability of flight
to a particular destination. Social media marketing on the other hand seeks to advertise from
various social networking sites, companies create their owm profile and link n the sites where
ither users can follow these pages and links (Morgan and et.al., 2019). This also helps companies
to know about the effectiveness of their companies marketing in form of its followers on social

media sites. On social media sites companies can also promote itself by promoting it through
other pages and links on the social sites that are having a large number of followers. Air Canada
uses all this advertisement and marketing strategies to achieve its objective of connecting Canada
to the rest of world and increase its customers and profitability and company also highlight their
concern for safety and valuing customers through its promotion.
Social responsibility- positive attitude of company towards safety and sustainability of
environment. Company's objective for sustainability includes offsetting carbon emission by
January 2020. This play a very important role in building reputation and image of the company
as companies which are responsive and active towards fulfilling their social responsibility
enables themselves to be respected by its customers and society at large (Hadjikhani, Lee and
Park, 2016). Air Canada is also respected by its customers and society because of their
consideration for environment and other social responsibility.
Focus on safety- When it comes to travelling through air one major concern of people is related
to safety. Air Canada's focus on safety is another important factor that have led company to
leadership position and enabled it to achieve its objectives. Air Canada has always had best
practices ensuring safety of its passengers and aircraft so passengers can travel without any
difficulty and worries. They also highlight this in their promotion.
Valuing customers- Value that is given by customers to its customer is another contributor to its
success and objective achievement. Air Canada's have always focused on valuing its customers
and for that have designed its process in a way that customers do not have any kind of problem
and difficulty while travelling with Air Canada.
While employing marketing strategies company also have to see whether its practices
regarding marketing are ethical or not. Ethical practices are based on moral values that
differentiate between right and wrong activities (Rowley, 2016). Air Canada have always
considered this factor and all its practices that look after well-being of customers and society are
correct and right on the basis of general values and moral principles.
Marketing Concepts that are being used in Air Canada
In order to stand out in competition companies have to consider various marketing
concepts and how companies can use these concepts. These concepts are many in number but
concepts that are used in Air Canada are 7 P's of marketing mix and STP strategy that refers to
segmentation, targeting and positioning.

7 P's of Marketing Mix in Air Canada are as follows-
Product- Air Canada that offers services of air travel to its customers have a strategic product
mix. Company offers services in forms like economy class that is further devided in 4 parts that
are economy tango, economy flex, economy latitude, premium economy and business class. All
these classes are provided with different type of services on the basis o their price. Along with
this Air Canada also provides its services in the form of cargo and for chartered travel, low cost
travel, domestic travel in Canada. There product mix is ery effective that can cater needs of its
customers.
Price- Price strategy is about prices that are charged by the companies in exchange for the
services being provided by them. Air Canada charges its price in the form of tickets (Saidani and
Sudiarditha, 2019). These prices of tickets are based on the class and status of the services being
availed by the passengers. This prices vary in 5 forms from Economy tango, Economy flex,
Economy Latitude, premium economy and business class. Prices increase respectively from
lowest in the economy tango to highest in the business class.
Promotion- promotion strategies of Air Canada includes an effective mix of traditional and
modern promotional techniques. That includes promotion through TV and newspaper
advertisement and marketing on social and digital media. There are various other factors that
also serve company as marketing strategies. These are in form of value that company provides to
its customers and consideration of the company for sustainability and safety of environment.
Company also focus on the safety of its passengers.
Place- Air Canada serves around 350 destinations including its subsidiaries. Toronto Pearson is
global hub for Air Canada. Company also have several point-to-point routes and services of the
company like booking tickets and getting information can be availed online as well. Air Canada
have also established various alliances so that customers can travel easily and also for efficient
operation of the airline.
People- Whether internal or external people Air Canada look after well-being of both. External
people who are customers of the airline company is very focused to fulfil their needs. To fulfil
needs and requirements of its external people airline have hired best and effective employees to
work for the airline (Luo, Roach and Jiratchot, 2015). Airline selects its pilots after very tough
and complex test and all other staff like cabin crew is also selected from big hospitality institutes

and then provide adequate technique so that they can look after and solve its customer's
problems.
Process- Process of the company is very systematic and effective that is very easy to be used by
its customers. Air Canada have designed its process in a way that all the work related to on-
boarding of flight can be done at single terminal and passengers do not need to change terminals.
Physical Evidence- Cabin of the airlines of Air Canada and its in flight services works as
physical evidence of the airline. Status and interior of its premium and economy class have also
been improved by the airline and airline also have very luxurious cabins that works as its
physical evidence.
Segmentation, targeting and positioning-
Segmentation- it refers to divide customers on the basis of demographic and psychographic
basis (Suyanto, 2019). Demographic factor includes classifying customers on the basis of the
place where they live and psychographic classification is based on the taste and preferences of
the customers. Air Canada uses a mix of demographic and psychographic segmentation.
Targeting- It includes targeting segmentation the basis of its size and differentiation. This allows
company to design its marketing program on that basis. Air Canada being a airline company uses
a differentiated targeting.
Positioning- Air Canada have positioned itself as leader in its industry (Schlegelmilch, 2016).
Services of the company are available on the basis of class and customer requirements and also
what price customers are willing to pay.
Relationship of marketing function with other functional area of organisation
Covered in Poster.
CONCLUSION
On the basis of this report it can be concluded that Air Canada have very effective
marketing strategies that made it a leader in its industry. There are various factors associated
with its marketing success that are its orientation towards safety of its customers and value that
company gives to its customers. Other important factor is its product strategies and promotional
strategies. Air Canada also have very ethical and morally correct objectives that give importance
to well-being of its customers rather the financial achievements of the company. Company also
have a very positive outlook towards safety and sustainability of environment and hence have
designed program of offsetting carbon emission. Air Canada where works to provide its services

at reasonable prices at the same time also focus on innovation and improvement and new and
improved advanced cabin of its air crafts are justification of innovation and company orientation
to provide its customers better value every time they travel with the airline.
Lastly it recommanded to the company that company can use power of influencers for its
marketing. Other recommendation is that company should employ one to one marketing strategy
as this strategy is very effective to influence customers and show them what kind of experience
they might have if they use services of the company.

REFERENCE
Books and journals
Allegranzi, B. and Pittet, D., 2017. Promotion Strategy. Hand hygiene: a handbook for medical
professionals. 9. p.230.
Cacciolatti, L. and Lee, S. H., 2016. Revisiting the relationship between marketing capabilities
and firm performance: The moderating role of market orientation, marketing strategy
and organisational power. Journal of Business Research. 69(12). pp.5597-5610.
Chen, T and et.al., 2017. Does rivals' innovation matter? A competitive dynamics perspective on
firms' product strategy. Journal of Business Research. 76. pp.1-7.
Hadjikhani, A., Lee, J. W. and Park, S., 2016. Corporate social responsibility as a marketing
strategy in foreign markets: the case of Korean MNCs in the Chinese electronics
market. International Marketing Review.33(4). pp.530-554.
Hill, N. and Alexander, J., 2017. The handbook of customer satisfaction and loyalty
measurement. Routledge.
Keller, K.L. and Brexendorf, T.O., 2016. Strategic Brand Management Process. Handbuch
Markenführung. pp.1-22.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Luo, A., Roach, S. and Jiratchot, C., 2015. The effect of the 7Ps of the marketing mix on air
freight customer satisfaction and repurchase intention. Journal of Supply Chain
Management Research and Practice. 9(2). pp.28-36.
Matthyssens and et.al., 2016. Aligning marketing and purchasing for new value creation.
Industrial Marketing Management. 52. pp.60-73.
Morgan and et.al., 2019. Research in marketing strategy. Journal of the Academy of Marketing
Science. 47(1). pp.4-29.
Pucci, T., Simoni, C. and Zanni, L., 2015. Measuring the relationship between marketing assets,
intellectual capital and firm performance. Journal of Management & Governance.
19(3). pp.589-616.
Rowley, J., 2016. Information marketing. Routledge.
Saidani, B. and Sudiarditha, I.K.R., 2019. Marketing Mix-7Ps: The Effect on Customer
Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB). 7(1). pp.72-86.
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In Global
Marketing Strategy(pp. 63-82). Springer, Cham.
Suyanto, A.M.A., 2019. Analisis Segmentation, Targeting, Dan Positioning (stp) Transmart.
eProceedings of Management. 6(2).
Online
Murray Newlands. 2015. Marketing strategies.[Online]. Available Through:
<https://www.inc.com/murray-newlands/15-marketing-strategies-that-inspire-strategic-
thinkers.html>.
Jenna Gross. 2016. Importance of marketing. [Online]. Available Through:
<https://movingtargets.com/blog/business-marketing/why-marketing-is-so-important/>.