British Airways Marketing Plan: Overcoming Barriers and Importance

This report provides an in-depth analysis of British Airways' (BA) marketing plan, examining the changing perspectives in marketing planning within the airline industry. It explores the internal and external factors that significantly affect BA's planning processes, including financial, human resource, and operational capabilities. The study uses techniques such as SWOT and PESTLE analyses to conduct an organizational audit, identifying strengths, weaknesses, opportunities, and threats. Furthermore, the report discusses the main barriers to marketing planning that BA faces, such as environmental, cultural, cognitive, and organizational challenges, and proposes strategies to overcome these obstacles. It emphasizes the importance of modern marketing concepts and customer-centric approaches in expanding BA's business worldwide, particularly in cargo and passenger services, highlighting how effective marketing planning can enhance market share and customer satisfaction. This detailed examination showcases BA's efforts to adapt to a competitive environment through strategic marketing initiatives.

MK PLANNING

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INTRODUCTION
Sustainability and profitability are two main motive of any organization. For
accomplishing their targets companies work hard and they offer products and services as per t
the needs of consumers. Marketing has become an essential function in the corporation that
supports in identifying the needs and delivery them products accordingly. Present report based
on the British airways (BA) Plc which is working in the airline industry since long time. It has
developed trust in the eye of consumers by providing satisfactory services to the travelers. Now
it wants to expand its business for both passengers and cargo services worldwide (Pozo, Sauma
and Contreras, 2013). Assignment will review the changing perspective of marketing planning.
Internal and external factors which affect the planning will be discussed in this study. Main
barriers of marketing planning will be examined in this report and solution will be provided so
that company can overcome these barriers. In addition, importance of marketing planning in
respect of BA will be described in this study.
TASK 1
1.1 Changing perspective in marketing planning
In the modern globalized era it has become very important of the organization to make
effective planning by considering the consumers choices. For achieving the goal of the company
it is essential to adopt correct marketing strategy and execute it in appropriate manner. Earlier it
was the responsibility of all departments and all level of workers get involved in this plan. But
now there is marketing department those which is responsible for the entire marketing planning
and execution (Medlik, 2016).
Marketing is completely differed from selling concept. Selling is short term goal just to
achieve current tar get whereas marketing is the long term planning that supports in fulfilling the
goal of the organization soon. British Airways adopts modern marketing concepts in which cited
firm concentrates more on the customer's needs and offer them such products which can meet
with their desires. Traditionally it was adopting the theory of 4P's that supports the organization
in enhancing the brand image across the world. But now days competition is very high and it is
very difficult to survive in such complex environment (Carins and Rundle-Thiele, 2014). So
British Airways has adopted modern marketing approach in which it looks upon the marketing
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trends and according design its new products and services. Cargo services of the company can
give huge success to the entity. BA is planning to expand its business across the world, for that it
has become necessary to offer sat satisfactory products to travelers. This marketing concept
assist the British Airways in increasing the market share of the organization to great extent.
Apart from this by this way satisfaction level of the consumers will get improved to great extent.
Cited firm look upon the internal and external environment and accordingly its takes any
decision related to marketing and operations (Ryan,2014). In term of changing perspective of
marketing it is analyses that BA adopts modern marketing concepts and it works on customer
centric approach.
Modern marketing approaches and methods have guided the cited firm and it has
improved its products. By this way it will be able to expand its business across the world and
cargo services will defiantly will give huge profit to the entity. However, business is going
towards better services to increase satisfaction level of the consumers. Thus, his modern
concepts can support the British Airways in fulfilling its objective significantly (Turnheim and
Geels, 2013).
1.2 Ability of British Airways for planning its future marketing activity
Organizational capabilities can be defines in term of its competences, skill of employees,
its strength , resources etc. British Airways Plc is planning to expand its business across the
world. There is high possibility for the cited firm hat it can expend it cargo services and
passengers services worldwide. Capabilities of cited firm are discuses as below:
Financial capability
Economic resources are the most important part of any business unit. British Airways
has strong cash flow which is considered as its backbone. Cited firm has allotted huge budget
for the research and development department (Hudson and Thal, 2013). That is why it has all
knowledge and information about the current trends and needs of consumers. That helps the cited
fir in modifying its products and services in such manner that can satisfy the needs of consumers
significantly. BA invests the amount in such places where it can get High return. Apart from this
it manages the cash flow well that is why operational cost of the entity is comparatively low.
That supports he entity in increasing cash inflow and increasing profitability of the organization
soon.
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Human resource capability
British Airways appoints skilled people those who have in depth knowledge about the
airline industry (Parkinson and Djilali, 2015). These talented people serve the consumers well
and fulfill their needs. Apart from this company give time to time training to its staff members so
that they develop new skills and fulfill their responsibilities effectively. Skilled employees are
the strength of the BA, they will support the cited firm in making future planning of marketing so
that company can achieve its objective soon and can expend it cargo and passenger services
across the world. Strong team serve as right hand of any entity, if workers are skilled and they
put their best efforts then companies can easily achieve their target (Tolley and Turton, 2014).
Operational capability
British Airways works on consumer centric approach and offers them satisfactory travel
packages and services so that they enjoy the experience. Company uses advanced technical
equipment so that it can provide safe journey to the travelers, it gives proper guideline while
lending the flights and while take off so that no consumers get troubled. Apart from this cited
firm train its staff so that they can operate the machinery effectively (Blackwell and Eilon,
2013).
These competences of the British Airways will support the organization in improving its
performance and by this way it will be pan to plan the future marketing activities significantly.
1.3 Techniques of organizational auditing
There are several ways and techniques that can support the organization in carrying out
the organizational audit. In the fast growing environment it has become necessary for the
organization to do audit so that they can identify their strength and weakness and can work to
minimize and maximize them significantly (Bhattacharya, 2016).
SWOT analyses is the major technique that is used by the British Airways for internal
audit. By this way cited firm get to know about strength, weakness, opportunity and threats and it
plans it marketing activities accordingly. That supports the entity in utilizing its capability and
strong points significantly and that supports in enhancing profitability of the corporation to great
extent. With the help of this method cited firm can identify its market position and can work to
increase its market share significantly. Through this auditing tool BA would be able to handle its
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upcoming threats and it will support in using the strong points significantly in order to achieve
the goal of the organization (Zuriyati and et.al, 2014).
PESTLE analyses is another technique that is used by the BA for external audit of the
company. There are many external market forces that influence the overall business activities of
the entity. Through this method cited firm understand the impact of external influences on the
business unit and it modifies its operations in such manner so hat it can deal with these elements
effectively.
Porter's five forces is another technique of organizational audit through this cited firm
understand thee power of consumers, suppliers, new threat, competitors and design its operations
in such manner so that these influences do not affect the activities of the entity.
1.4 Carrying out the organizational audit
Internal Audit
SWOT analyses
Strength
 Long experience in the aviation
industry.
 Global premium airline
 Strong brand image
 Own engineering branch for the
maintenance of aircraft fleet High level of digitization services
Weaknesses
 Over dependency in UK market
 Constrained capacity of heal throw
airport
Opportunities
 International market expansion Improve relationship with employee
union
Threats
 terrorist attacks
 Economic slowdown
 Escalation of conflicts with government
of UK.
PESTLE analyses
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As discussed above it is the technique that supports the entity in external environmental
audit. Elements of PESTLE are as below: Political: If government increases fuel prices and enhance tax rates then it would create
problem for the entities because it will enhance operational cost of the BA. Thus, cited
firm will not be able to gain high profit by this way (D'alfonso and Nastasi, 2014). Economic: Inflation, recession, increase interest rates etc. impact on the entire aviation
industry. That indirectly impact on the British Airways as well. Due to this buying power
of the consumers get down and they do not prefer air travels because it is quite costly for
them. Whereas if there is high employment opportunities then income level of the person
will be good and that will help in increasing demand because at that time economic
condition of the nation would be good. (Farris and et.al, 2015) Thus, this is the factor that
impacts the business to great extent. Social: Culture, perception of people etc. influence the consumers and they turn their
mind. So it is necessary that British Airways offer them such products which are most
likable by the consumers. Legal: Fuel laws, environment legislation impact on the business unit, cited firm will
have to modify its operations according to these norms so that it can run its business
legally and ethically. That would be beneficial for the organization in sustain in the
market for longer duration (Fu Oum and Yan, 2014). Technological factor: Though British Airways is using advanced technological
equipment but if any new technique come in the market so cited firm will have to
implement it in the workplace. That may create problems because firm will have to mold
its operations accordingly.
 Environment: It is necessary to protect the environment and run business in such manner
so that environment do not get negatively affected.
TASK 2
2.1 Main barriers to marketing planning
Marketing planning is the essential aspect of entire business unit, if planning is good then
cited firm will be able to achieve its target effectively but if it is poor then overall objective of
the entity will not be fulfilled (Jiang and Zhang, 2014).
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Environmental barriers: It is one of the main issue which is currently faced by the
British airways. Government wants to protect the environment so it makes new legislation, laws
and policies that can support in improving the economic and surrounding condition of the nation.
But due to amendments in law British airways has to make modifications in its existing planning
that create problems for the entity.
Cultural barrier: It is necessary for the aviation industry that to look upon the values,
belief of consumers. And conduct operation by considering these aspects in order to run business
ethically. This element influences the demand that create barrier for the cited firm (Awan and
Rehman, 2014).
Cognitive barrier: Lack of information about competitors and current market situation
can create problematic situation for the BA and it impacts on its working efficiency to great
extent.
Organizational barriers: Improper structure, poor management, lack of skilled mangers,
lack of resources are internal things that create problems for the organization and due to this firm
fails to sustain in the market for longer duration (New Product Development: Stages and
Methods. 2009).
2.2 Ways that can support in overcoming barriers
There are several strategies or ways that can support British Airways in dealing with the
barriers:
 Cited firm needs to conduct market research that will help in identifying the current
market situation and by this way it will be able to offer quality products and services to
traveler significantly worldwide (Factors Affecting Consumer Buying Behavior, 2016).
 British Airways should conduct training programs, it will help in reducing the cultural
barriers of the entity significantly. Because it will support in designing the products and
market it according to culture of the population of particular country.
 Monitoring and controlling is the way that can support in reducing the organizational
barriers. By proper monitoring cited firm ill be able to utilize resources well thus wastage
will be eliminated that would help in improving cash flow in the organization.
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TASK 3
3.1 marketing plan for BA
Marketing plan is the comprehensive business document that define the marketing efforts
on an entity for current situation and future growth. For launching the cargo services British
Airways needs to following this marketing plan: Set objective: It is the first phase in which BA will have to set its objective which it wants
to achieve in near future. This will support the entity in achieving its goal soon. Aim of
British Airways Plc wants to expand its business across the world (Jiang and Zhang,
2014). Current market situation analysis: It is the next phase in which cited firm will have to
understand the internal and external market situation. Which can be done through SWOT
and PESTLE analyses. By this way it will be able to identify its market position that
would support in making effective plan for expanding the Cargo services across the
world. Segmentation, targeting, positioning: Once the market situation has been analyzed by the
BA t hen it has to select particular segment and has to decide target market. That would
help in making sound planning (Zuriyati and et.al, 2014). Formulate strategies: It is next phase in which BA needs to formulate strategies that can
help in gaining success to the cited firm. Ansoff matrix is the great strategy that would
help the organization in evaluating the products and services and accordingly cited firm
will be able to make improvement in this.
 Financial plan: Once plan has been made then company is required to set budget and has
to allocate funds for each activity.
 I: British Airways is required to implement the plan effectively as per the planed
activities. Managers of the cited firm needs to control over the activities that would help
in reducing mistakes. By following this plan BA will be able to achieve its target soon.
3.2 Significance of marketing planning
Marketing is essential function, importance of marketing planning in the strategic
planning process is as following:
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 It is effective tool through which that supports in making integration within strategy by
this ay company will be able to achieve its objective soon (D'alfonso and Nastasi, 2014).
 Marketing planning is very important and helps in making sound decisions which are
essential for formulating strategies. Decisions related to allocation of resources,
perspectives strategies will be made significantly.
 Marketing planning supports the organization in guiding the team so that they can
implement the plan significantly and can achieve their target.
 It is beneficial tool through which BA can know the needs to consumers and can provide
them services and travel packages according to their desires (Fu Oum and Yan, 2014).
 It assists the cited firm in gaining competitive advantage.
3.3 Techniques for new product development for British Airways
There are several techniques that can support the BA is developing the new products and
services for satisfying the consumer and to expand their business across the world. Description
of these techniques are as following:
Test marketing
It is one of the great method through which organization can identify the needs and
preferences of particular market and can offer them products accordingly. British Airways wants
to launch the cargo services and passenger services in international market. It can make this
service available in the market for limited time duration. If sales of the product is high hen it can
be assumed that this is effective and no need of development (New Product Development: Stages
and Methods. 2009). But if responses of people are not good then company will be bale to
identify the loop fall of the product thus, it will be able to make necessary changes so that it can
be developed significantly. That would help in the product development tin the British Airways.
Observing
That is another method that can support the BA in development of the products and
services. The main advantage of using this method is that it helps to minimize risk of the entity
significantly. It will help in getting innovative ideas that can satisfy the needs of consumers.
Thus, BA would be able to implement these ideas for the product development in the
organization (Factors Affecting Consumer Buying Behavior, 2016).
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3.4 Recommendation for pricing policy, distribution and communication mix
Price is the element that can influence the mind of traveler to great extent. Market
penetration strategy would be beneficial for the British Airways. As new product can not be
accepted by the travelers immediately if company offers it at high prices. British Airways should
keep lower prices of its cargo and passenger services in the new market. It will gain attention of
mass public and by this way cited firm will be able to attract then that will help min establishing
the business in international market significantly (Medlik, 2016). Once people start liking the
services then British airways should increase its prices for the same services because then
customers will defiantly buy it. This strategy is effective and through this cited firm will be able
to accomplish its goal soon.
Direct distribution would be great way for the BA because it will help in minimizing the
intermediary commission thus, it will be able to offer the products at lower cost to travelers.
Apart from this operational cost of the entity will also get down. BA can take support of social
media marketing in order to sell its products and services. That would be cheaper and will
support sin increasing sales volume and profitability of the cited firm (Blackwell and Eilon,
2013).
Social media marketing would be sound e\strategy of communication mix for the British
Airways. Company can use Facebook, Twitter and other social networking sites. It can offer
attracting discounts through these sites. By this way company will be able to make effective
communication with the travelers. Because they will get information on internet so they can raise
their quarry immediately and company can give immediate response to them. That would help in
making the loyal towards the brand (Fu Oum and Yan, 2014).
3.5 factors affecting effective implementation of the marketing
Plan
There are many elements that impact on the implementation of the marketing planning.
These are discussed as below:
Poor Control: If management is not paying close attention of the marketing plan implementation
then it would create problem in the implementation because it will enhance cost of the BA to
great extent.
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Budget: It is another element which can influence the overall marketing planning of the
organization. If budget of marketing plan in British Airways is not good then it will not be able
to implement the marketing plan effectively in the workplace. If there is proper budget then cited
firm will be able to execute the plan significantly and it will support in achieving goal of the
company soon (Awan and Rehman, 2014).
Customer composition: If the educational level, income status etc. are not appropriate then
company will be able to achieve its tar get through any marketing planning, because it will affect
the demand to great extent.
TASK 4
4.1 Ethical issues that influence the marketing planning
It is necessary for the organization to meet with ethics and run business ethically. False
advertisement is the main ethical issue that can affect marketing activities. It is very important
for the BA that to give advertisement clear, there should not be any kind of false information that
misguide the person. Market research needs to be done ethically, manager should not force any
consumer to give their response (Farris and et.al, 2015).
Generally firms compete with the competitors and due to this competition they give
faulty products and services to the clients. Transparency is another ethical issue that can cause
difficulty in the BA. So cited firm is required to maintain opacity and each information and
updates needs to be communicated to end users on time. Description of services and travel
package needs to as same as it was advertised. There should not be any miscommunication.
These ethical issues can affect the marinating planning of the BA to great extent (Fu Oum and
Yan, 2014).
4.2 Response to ethical issue by BA
British Airways run its business ethically, it does not break any rule. Managers of the BA
encourages to employees for ethical consciousness. They give training to staff members so that
no person get engaged in any wrong activity and do not make false commitment to consumers.
Cited firm follow government regulations and supervise employees so that they do not break any
legal law. Apart from this BA always consider the cultural factors and advertise its products and
services within boundaries so that not culture get hurt (New Product Development: Stages and
Methods. 2009).
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British Airways communicate with consumers well and give all necessary detail on its
website so that people get updated information and no further confusion takes place. Cited firm
follows trade description act 1968 strictly and run its business according to norms.
4.3 Consumer ethics and its effect on marketing planning
Consumer ethics are the essential aspect in the business and marketing practices.
Examples of consumer ethics are as following:
 False claims: British Airways provide cargo and passenger services to the consumers. But
they should not do false claims in order to get insurance amount. Because it harms the
brand reputation to great extent. Due to this marketing planning get negatively affected.
 Illegal access to data: British Airways makes arrangement of travel for millions of people
(Hudson and Thal, 2013). So it is necessary that consumers disclose their medical history
with the management so that while travel management can take care of them. Otherwise,
it can cause difficulty to the travelers and if it happens then it would create negative
brand image thus, entire marketing planning will get failed.
CONCLUSION
From the above report it can be concluded that internal and external factors impact on
the business performance greatly, so firms are required to pay attention on this and they have to
modify their operations accordingly. British Airways needs to follow ethics and should plan the
marketing efforts under legal and ethical boundaries so that it can achieve its objective
significantly. Company needs to use test marketing techniques by this way it will be able to
develop its products as per the needs of consumers. That would help in satisfying them and
company will get high profit through this.
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