Marketing Plan Analysis: British Airways Case Study Report

This report provides a comprehensive analysis of the marketing plan for British Airways (BA), examining its strategies, capabilities, and the external factors influencing its operations. The report begins with an introduction to BA, its market position, and its marketing planning processes, followed by an examination of the use of marketing theories and the changing perspectives in marketing planning. The report then analyzes BA's organizational capabilities and its ability to plan future marketing activities, including techniques like PESTLE and SWOT analysis. The study further identifies and discusses the main barriers to marketing planning, such as isolation of marketing activities and external challenges like Brexit, and proposes strategies to overcome them. Additionally, the report covers the importance of marketing planning in strategic planning, techniques for new product development, and recommendations for new product launches. Finally, the report delves into ethical issues influencing marketing planning, and how BA responds to these issues, including the impact of consumer ethics on its marketing strategies. The conclusion summarizes the key findings and recommendations for BA's future marketing endeavors.

Marketing planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Use of appropriate theories, review changing perspective in marketing planning................4
1.2 Organization's capability for planning its
future marketing activity.............................................................................................................4
1.3 Techniques for organizational auditing and for analyzing external factors...........................5
1.4 Auditing and analysis of external
factors..........................................................................................................................................6
TASK 2 ...........................................................................................................................................7
2.1 Main barriers to marketing planning .....................................................................................7
2.2 Strategy to overcome with barriers .......................................................................................7
TASK 3............................................................................................................................................8
3.1 Marketing planning................................................................................................................8
3.2 Importance of marketing planning in strategic planning process .......................................10
3.3 Techniques for new product development...........................................................................10
3.4 Recommendation for new products.....................................................................................11
3.5 Factors affecting the effective implementation
of the marketing plan................................................................................................................12
TASK 4 .........................................................................................................................................12
4.1 Ethical issues influence marketing planning........................................................................12
4.2 Organizations respond to
ethical issues ............................................................................................................................13
4.3 Consumer ethics and the effect it
has on marketing planning........................................................................................................13
CONCLUSION .............................................................................................................................14
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Introduction of British Airways
British Airways which is often know as BA. This company is the largest airline in UK
based on their fleet size. When measured by passengers carried, it is second-largest in the United
Kingdom behind easyJet. The company was established in UK by government in 1972 in order
to manager its nationalized airlines. The company is privatized in February 1987.
The company is offering its services to the worldwide and its major hub is London
Gatwick Airport .British Airways has terminated all straight overseas flights from UK airports
with the exception of Heathrow, Gatwick and London City Airport. BA is also founding
member of One world airline alliance along with many other airlines. Airlines' head office,
Waterside, stands in Harmondsworth, a village that is near London Heathrow Airport
Heathrow Airport is main source of income for the company as they offer 40% of total
airlines' industry. At present the company is conducting its business operation more than 183
destinations and its parents company is international Airlines groups. The revenue of company is
£11,421 billion in 2015. Entity is offering its services by different types of Boeing aircraft and 59
Airbus A320 family aircraft.
In its marketing they offer different types of programs such as loyalty programme which
is called as executive club in which they offer more advance service to thir customers such as
premier incentive program for their customers.
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INTRODUCTION
Marketing planning is important aspects in every organizations. With the helps of this
they can identify the future activities of marketing and marketing strategy. The presents report
is based on the British Airways which is second largest Airlines in UK (Athey, Suckling and
Rogers, 2012). This report make analysis on appropriate theories in marketing planning and
Organization's capability for its
future marketing activity. Along with this it makes analysis on different types of factors which
effects ethical issues of company.
TASK 1
1.1 Use of appropriate theories, review changing perspective in marketing planning
Marketing planning is multiple process tool that enables to management to understand
everything about the company. Organization capability for planning the future activities of
marketing are identified with core competence, strengths and weakness. British Airways is UK
based airline which is second largest Airlines in UK. BA is continuous is expanding their
business worldwide (Bickhoff, Hollensen and Opresnik, 2014). The company possesses high
level of skills on its marketing and planning that helps to expand their business worldwide.
Organization's marketing planning is based on superior quality, reliability, friendliness
and design of services. Entity is believed to offered their services ins such manner so it can easily
associate with Airline company. The major components of marketing planning is marketing mix
in which they keep their products as global products. T he marketing planning is also focuses on
growth strategy in which consists with consist high quality and services.
There has been developments in terms of working principles of business organizations.
The strategic introduction of technology has helped in creating ease for the fulfillment of
business operations. Furthermore, the marketing planning process has also changed because of
these developments. Globalization and industrialization are the key factors in this process.
Businesses like British Airways now consider customer oriented approach as compared to the
profit oriented approach in earlier times. This approach towards marketing planning helps in
creating customer value and greater level of satisfaction.
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1.2 Organization's capability for planning its future marketing activity
Organization's main aim is to providing the best services to the passengers. Along with
this its marketing strategy is also focused on innovation of evaluation of its abilities 4Ps
assessment has been used.
Product
The BA offer airline services of premium segment. The company is offering high level
of services which is customization and abundance of choice. Along with this the company
introduced the latest services and security to its passengers which is more strong and safer than
any other airlines across the global (Craig and Campbell, 2012).
Place
BA is offering its services around the world. Entity has huge number of flight as they
have more than 300 aircraft, which are operating their flights on the domestic and Internationale
destinations.
Price
BA is offering good quality of services to their customers. Apart from its classy services
it also maintains most economical rate of its flights on different destinations. The upper middle
and middle class people can buy tickets of this airline can enjoy their long distance journey.
Promotion
The organization is promoting its services by using diffident types of promotional
activities such as various incentives and facilities Which they can provide to their passengers.
Along with this the organization is also offering most effective and impressive advertisement
policy which helps to gain attention of its passengers (Huang and Sarigöllü, 2012).
Competition
The company is facing highly competition from the many other companies. BA is
Emirates airlines. This company is based in UAE so they have to make certain changes. As per
to beat their competitors they need to use aggressive marketing strategy to expand their
business.
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1.3 Techniques for organizational auditing and for analyzing external factors
Marketing audit is refers to systematic, comprehension analysis, evaluation &
interpretation of business data for achieve its goal, profits ad proper management. There are
different types of marketing techniques which can be used by organization for making auditing
of its external environment. Some of them are disclosed below.
Pestle Analysis
This is one of the best strategic tool, which is used by organization in order to
make analysis on external environment of company. Through this frame work they organization
can easily identity those factors which might effects its performances. BA uses this strategy to
make evaluation on their business plans and to make evaluation of their future strategics
SWOT analysis
The SWOT analysis is focuses on opportunities, weakness, strengths and threats. With
the help of this strategic tool organization can develop its market and also make analysis on
their future plan (Luan and Sudhir, 2010). BA use this strategics so their internal strageices and
meet their external requirements
Porter's five analysis
This analysis is consists on five different stages of organization. With the help of this
analysis BA can determined its threats and competitor which effects organization's activities.
Along with this they also make analysis on the bargaining power of buyer and suppliers
1.4 Auditing and analysis of external factors
Political factor
In the recent environment the political environment of UK is highly unstable because of
coalition of government and major spending cut which is making for saving and reducing on the
national debt. The company is planning for expand its business of Heathroew airport which leads
to cut down the budget increased number of flights.
Economical factor
The economic factors have also huge impact of organization's activities. Recently
decreases in flue prices has positive impact of the organization which helps to them for
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maximizing their profits (O'shaughnessy, 2014) On the other hand highly fluctuation in exchange
rate increases their budgets.
Social factor
The main target of Organization are those people who prefers to going away on holiday.
The cultural treads of the BA is highly secured. People of UK and around the world have
increased traveling a which helps to company to gain more profits.
Technological factor
This factors have positive impact of organization. Online internet services had been
widely used and its reduces costs of entity. The organization is also offering different type of
technological based services to their customers such as E tickets, self service check in and
wireless LAN system for their customers.
Environmental factors
As people are now becoming more aware, to its environmental issues. So in order to
conducting business operations more easily they have to make green strategy so they can also
integrate with environment
Legal factor
There are certain laws which can effects business operation of BA. There are different
types of security regulations which imposed on Airlines industry (Pitta, 2012)Apart from this,
terrorist attack cam also leads to fail in customers traveling confidence.
The conclusion of the analysis is that it helps to company to make changes for their
marketing strategics. It is also concluded that the company need to expand their business and
should offers more premium services to their customers.
TASK 2
2.1 Main barriers to marketing planning
There are many barriers which are faced by BA during implications of its marketing plan.
There are several barriers appears in its marketing planning s which are as follows.
Isolation of marketing activities
The major reason of the failure of marketing plan is that they are fail to gain complete
knowledge regrading to the market. In order to make marketing plan more successful it is
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important to gain completer information regrading to marketing (Sadjadi, Yazdian and
Shahanaghi, 2012). For example in order to expand market in Asian countries they need to get
assess consumer behavior and market trends. In those country people like consume those
services which are more cost effective. Along with these they also make surveys on the
consumers behaviors so they can offer more services to the customers and bring in great
effectiveness in terms of customer value.
External Barriers
There are various types of external barriers which are faced by BA. At present, Brexit
have creates negative impact on its business. BA is UK based company and their main operations
are conducted in UK and Europe (Athey, Suckling and Rogers, 2012). After, Brexit, they treat as
foreign country in Europe. Such uncertainties have always affected the business functioning of
BA. The effects of Brexit are understood in the form of movement of employees back to their
native states and more requirement for skilled labour. The marketing activities are affected by
such kind of external barriers which occur economic and political changes.
Organizational challenges
Organizations own cultural and their goals are also become barriers for the BA in its
marketing planning. In order to make successful execution of marketing planning it is important
to involves employees in its business decisions so clear goals and objectives can be set.
2.2 Strategy to overcome with barriers
There are different types of strategy which helps to the for overcome with barriers which
are as follows.
Assess market before making marketing planning
To avoid the barriers from the marketing plan British Airways need to make assessment
in market in which they are planning to make entry. Through this they can gain complete
knowledge regrading to the market and also understand the consumer's demand.
Use of marketing strategy
To avoid the main barriers from the marketing plan it is important to use of different
types strategic tools such as PESTLE or SWOT analysis. With the help of this strategic tool
marketing managers of organizations can easily make evaluation on those factors which might
effects organization activities and their performance (Sadjadi, Yazdian and Shahanaghi, 2012)
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Make communication
Management of BA need to make effective communication with their employees so they
can also associate with organization's visions and missions. Planning forces managers to deal
with the future and to remove the crisis. The organization also need use of advanced technology
in it business so they can develop effective planning for their future. It helps to company for
making their service more cost effective.
There has to be proper communication so that objectives, goals and the strategies of the
company are delivered amongst the audiences and the members of marketing team. The overall
marketing strategy can be successful only when there is a set path defined and met according to
the requirements of customers.
TASK 3
3.1 Marketing planning
British Airways is offer passenger services to 7 new destinations. BA to generate much
Revenue compare to the previous years. New services will enable BA to
increase the number of passengers and can take advantages over the competitors. Following are
marketing Plan of British Airways (Park, 2014.).
Market business planning
Situational analysis
In this the organizations gather all important data which are related to business. It
provides ideas and focus on opportunists to grow. Situation analysis is just a SWOT analysis.
Strength
 Strong brand image
 Have own engineering branch to
maintain aircraft
 The company develops online ordering
system and diversity in its business
operations.
Opportunities
 The main opportunities of organization
is that they can offer its services in new
emerging market.
 Improving their business relation with
unions.
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Weaknesses
The company depended on UK market.
BA has large number of unionised workforce.
So bargaining power can take place on regular
basis.
Threats
Main threats which are faced by organizations
is terrorist attacks and escalation of the
conflicts with the government.
Target Audience
The target audience of the BA is proportion of customers who are willing to pay extra for
the special attention British Airways delivers. So the company is offering perineum services to
their customers (Hollensen, 2015).
Marketing objectives
Specific The objective of company is offers new services in its airlines at 7 new
destinations.
Measurable British Airways want to increase its services in 7 new destinations and for that
objective are measure in terms of increases customers.
Attainable The organization is global brand and offers high quality services to their
customers so their customers can purchase its services at premium prices.
Realistic The Goal is realistic and it helps to organization for gain market share in other
countries by 95%.
Time
Bound
This goal is need to be attain in next 2 years and it offers its services at different
time in different regions.
Strategy
In order to expand its business services in more than 7 new destinations the company is
market segmentation in which they are primarily focused on offering more lavish service to their
customers (Chaffey, Smith and Smith, 2012.). Segmentation they are focuses on offering
services on the basis of their income. They are offering their services to those people who holds
high income group. In the next step is targeting in which they are focuses on offering to their
services to demographic basis. In the next steps which positioning they are offering use different
types of promotional offers and also they offer many other services to their targeted customers.
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Tactics and actions
British Airways is planning to offer it services in 7 new destinations. So for promoting its
services they use different types of promotional platform such as TV, social media and print
media. In order t make effective promotional activities they are using social media through
which they going to make target to their customers.
Budget and control
`For achieving the said target they need to more than 20 million Pounds. In which they
offer 7 pounds for marketing team, 10 for the promotional team and 3 million for the internal
team. In order to make control over this they make regular assessment on their activities.
3.2 Importance of marketing planning in strategic planning process
The strategic planning process is important that help to manager to implementation the
strategy which helps to British Airways for sustainable advantage (Bickhoff, Hollensen and
Opresnik, 2014). The marketing planning helps organization to make evaluation of market and
their requirement as according so BA can develop their effective marketing strategy. The British
Airways use this marketing plan in order to develop their present market meet the loyalty of
business. With the help of marketing planning strategies of organization can be implement in
effective manner. It also helps to them for making effective communications at each and every
level of company.
For British Airways marketing planning is very important because it helps in offering
new services to their customers at new market place (Craig and Campbell, 2012) It helps to
organization of generating strategic goal and provide success with innovation. The main aim of
marketing planning to target market in effective manner and focuses more entity's potential
clients
British Airways is one of the most reputed global brand which offering different types of
services to its customers. The company is planning to offer its services in seven new destinations
so for that marketing planning is essentials for the organization in order to expand their
business,.
3.3 Techniques for new product development
British Airways is want to offer its services in 7 new places so for that they can use
different types of techniques which helps to them for expanding their business. In order to make
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examination of the product development the company need to use new product development so
to make examination on new products' development BA can use NPD process which helps to
them for making for carrying out all activities which need to be introduced in market. Following
are strategy of NPD models (Huang and Sarigöllü, 2012).
New product strategy: The new services which is offers by BA is totally related to organization
objectives which is offering the best services to their customers.
Idea generation: The objectives of organization is to make more customers and by offering it
services in 7 new target market they can expand their market.
Screening: In this the company is make screening new services and make more detained analysis
on their services.
Business Analysis: By introducing of new services in 7 new destination profits of BA is
increased by 27%.
Development: In this organization make evaluation of different types of ideas and select them
on ideas for its products which is more profitable
Testing: In this the company make testing on its services by conducting marketing research and
commercial experiments
Commercialization: The company identity different types of sources to launch its services.
3.4 Recommendation for new products
BA is offering its service at 7 different new places for this they are using product
development plan. For this new service pricing is very important factors as it helps to
organization for increases its revenue. With the helps of this new service the entity can increases
its profits and market share and along with this they can also improve quality of their products.
Following are recommendation for price, distribution and communication Mix.
Price mix
British Airways is always focuses on making their services more advanced. The company
should use as differentiation.The company is planning to offer it services in 7 new destinations
so every regions is different from other so they should set prices different for each regions.
Distribution mix
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