Marketing Principles and Practice: British Airways Case Study Report

This report provides a comprehensive analysis of British Airways' marketing strategies and practices. It begins with an introduction to the airline industry and highlights British Airways as a prominent player. The main body of the report delves into key marketing concepts and terminology applicable to British Airways, including product, pricing, promotional, distribution, and branding strategies. It then explores the marketing strategies and programs employed by British Airways, such as price marketing, promotional strategies, and sales strategies. The report also examines the marketing principles and concepts, including the marketing mix (product, price, place, promotion, physical evidence, people, and process). The report highlights how British Airways uses these strategies to achieve its objectives, focusing on ethical considerations and customer satisfaction. Overall, the report provides a detailed overview of British Airways' marketing approach and its application of marketing principles.

Marketing Principles and
Practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Key marketing concepts and terminology applicable to British Airways...............................3
b) Marketing strategies and programs of British Airways...........................................................5
c) Marketing principle and concepts............................................................................................6
Segmentation, targeting and positioning......................................................................................7
Relationship of marketing department with other functional department...................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The airline industry comprises a large multitude of airlines varying from low cost carriers
to international airline groups. The airline industry in UK is the most prominent airline or active
airline in the world. It has the third largest aviation network in the world. In this report, British
Airline is taken. British airline is the largest airline of UK, founded in 1974, having the main hub
at Heathrow Airport in London. It offers year round low fares with an extensive global flying
routes. British Airline is the most popular airline with 60% respondents having positive opinion
of the company. The airline industry is very competitive nowadays with companies offering
similar products for the same customers so companies have to be creative, innovative and use
marketing strategies to generate buzz and attract customers attention. It needs to be understood
that it's a buyer's market and not seller's market. In this report, key marketing concepts and
terminology applicable to British Airways is studied and identifying the marketing strategies and
programs that helped British Airlines in achieving the objectives in an ethical manner, followed
by the recommendation to improve their effectiveness.
MAIN BODY
a) Key marketing concepts and terminology applicable to British Airways
Marketing is a broad process that includes research, product design, promoting, customer
care, branding. It revolves around the core marketing principles, strategies and functions. These
are the marketing practices that are implemented to remain in the business and take competitive
advantage over others. Some key marketing concepts applicable to British Airline are stated
below.
1. Product Strategy: British Airline is always indulged in giving world-class facilities to its
customers. It's product strategy includes flight services, quality of flights, executive class,
business class, security and other support services. It has come up with the loyalty
products which can be spent on flights, upgrades, hotel accommodation, car hire etc. It
has the best punctuality record on flight departing and trying to further improve it through
digital technology (Lancaster and Massingham, 2017). The services offered are integrated
with the latest technology. The services are also differentiated based on long haul and
short haul. Its main product is to provide flights to customers who wish to travel. It is
continuously working to merge with other airports at different locations to expand its
business and make its presence all over the world.

2. Pricing Strategy: British Airline sets the prices of its product in such a way that allows
customers to decide the level of service they want. Its premium strategy allows high
quality products and services at higher prices. Its main aim is that every body should be
able to afford the flight tickets (COUASME and GURGEY, 2016). It offers discounts to
customers who fly frequently and on festive seasons. Customers can avail the services as
per the requirement by adding the services they want which will increase the cost. It sets
its price using cost plus margin strategy. It's low price is giving tough competition to its
competitors which attracts more customers and increases satisfaction level.
3. Promotional Strategies: Businesses also emphasize on promotional activities. It is the
combination of advertising, public relation and selling to attract, sell and retain
customers. British Airline's promotion strategy is very attractive. It targets every aspect
of life in promoting its product and services based on target customers. Recently they
came up with a unique idea by introducing famous personalities to share their experience
of flying with British Airlines (Qiao and Griffin, 2016). This targets the audience who
admire these personalities and believes in them. The reason why it got success is that it
picked up on the viral video trend at right moment. With the increasing use of YouTube,
Facebook, Instagram, a viral video can make or break a campaign. It employed British
humour and made the airline affectionate in the hearts of viewers and passengers. It has
also gained customer advantage by marketing in-flight experience which includes in-seat
entertainment programmed with television shows, music, movies, games etc. Adding
these perks to the marketing strategy makes customer to rethink before choosing the
airline the next time it flies.
4. Distribution Strategy: British Airline tickets are available through physical locations,
travel agents, online via the website (Whyte and Lohmann, 2016). With the e-commerce
rapidly changing the distribution strategies, British Airline is trying to reduce its cost and
provide superior services to its customers by eliminating intermediaries within its
distribution channel. It has connected to more than 200 destinations in more than 82
countries. It has adopted NDC (New Distribution Capability), which allows airline
service providers to deliver rich content and ancillary services to its customers.
5. Branding strategy: British Airline is has been ranked 405th in Forbes magazine list of
global brand. The brand has been values at $13.7 billion, generating revenue of more than

$25 billion. It connects with the customers on social media, in order to form and deepen
the relationship by humanizing the brand (Hanlon, 2017). It uses social media in a
number of ways such as providing services to customers, offer updates on discounts,
giving insight about the events happening, benefits, loyalty programs, how it is different
from its competitors etc.
b) Marketing strategies and programs of British Airways
Marketing strategy is overall business game plan of marketing in order to attract
customers or to achieve marketing objective of an organization. It helps in effective utilization of
scare resource in order to increase sales of the company. The British Airline have select under
served and un-served for target market and have use various marketing mix tools in order to
achieve company objectives. So, the following strategies used by British Airways can be as
follows:
Price marketing: Price include cost of per item and profit margin for which the company
operate in the market (Wymer, 2017). It is the most important strategies as it impact on the sales
and demand, profit and survival of any business. Pricing strategies is made while considering
competitive environment, customer demand and the product or service in which the company
deals. The game plan of British Airline is to provide good customers service at a fair and
affordable price. It pays more emphasis on ticketing and electronic reservation as a part of
marketing strategies that avoid practice of overbooking. British Airways focus on greater
convenience and better service principle combined with rational fair basis so it can be concluded
that the company neither seek high price nor aim at low price. Thus, the objective of the
company is to satisfy the needs of the customers and to increases it markets share that will lead
to increases in profit margin of the company.
Promotional Strategies: It means various activities that are undertaken in order to boost brand
recognition and sales of the company. It includes public relation, method of advertising, sales
promotion and small changes in these activities can lead to higher sales. In order to attract large
number of customer company has built strong public relationship and have use distinctive
method of advertising. British Airline has also built user-friendly website that can be used for
reservation, information and e-ticketing thus it would be economical and predictable process for
the company if used more by the customers. The company also provides special offer to the
customers in order to maximize its market share. So, it can be concluded that British airways has

use various promotional tools in order to increase sales and profit margin of the company so that
the objectives of an organization are achieved.
Sales strategy: It is a plan that describes the position and selling of company product or service
by differentiating it from other competitor in the market (Wymer, 2017). This strategy is made to
increase sales and profit margin of the company. Success of such strategy depends upon
marketing and overall concept of an organization. Mass marketing is not enough it requires a
personal touch through customer service representatives, websites that influence as many
customers for the company. British Airways developed general sites so that customer can use
own reservation and ticketing service so that the customer would not have to pay commission to
travel agents. There are many customers that prefer personal touch more because they do not like
to arrange their travel using internet. The Airline does not have large sales team so, sales and
marketing manager target their effort towards potential customers that offer group or corporate
travel. So, it can be concluded that British Airline has effectively use marketing method and
personal touch in order to increase the sales of the company and thus create happy and loyal
customer for the company.
So, it can be concluded that the British Airways has used various strategies and program
that are ethical in manner in order to achieve goals of an organization. British Airways also used
price strategy, promotion and sales strategy in an ethical manner in order to gain maximum share
in the market. These have done by providing good quality service at affordable rates to its
customer, easy access to its website and by personal touch. The company has promotes its
service through user-friendly websites that are economical in nature and customer can easily gain
information relate to flight schedule, destination, charges and facilities or service that company
offers etc.
c) Marketing principle and concepts
Marketing principle means all activities are undertaken in order to influence one's
behaviour or to satisfy the needs of the customers. So marketing mix is a fundamental principle
of marketing and there are seven factors that need to be considered for effective sells of goods
and services. Marketing concept refers to strategies of firm that satisfy the needs of the
customers, maximize profit, beat competition and thus increase sales of the company. This
principle and concept of British Airways are describe below:

Product: Product and service is the thing offered by the company that is produce in order to
fulfil the needs of the customers (Palmatier and Crecelius, 2019). The product should be
distinguished from competitor product or service offered in order to get maximum market share.
British Airways deals in airline industry so it provides good transportation facilities that include
improved airport, in flight services, more leg room and restful cabin décor.
Price: It is the most important factor as it determines buying behaviour and also influences
customers to purchase the product (Bagnied, 2018 ). The price should cover all the cost incurred
and profit margin of the particular product or service of the company. British Airline has
provides good quality service at affordable price to its customer in order to gain maximum share.
Place: This factor determines that place where the product or service should be delivered in
order to attract large number of customers. British Airways operate its business around the globe
thus provide ease to its customer to travel among various destination as per their requirement.
Promotion: This includes activities related to the marketing of the product through
advertisement, by build public relationship (Kolhede and Gomez-Arias, 2017). British airways
promote its business through website by providing information of various flight schedules.
Physical evidence: It affects the satisfaction needs of the customers as service being intangible
the way it offers enhance the customer experience. British Airline by providing facilities such as
restful cabin décor and use movie screen to show information related to flight and their plane
course.
People: They are the people that help in delivery of good and service to the customers and the
employee should be provided training in order to handle the customer effectively (Hidayat,
2017). British Airway has well qualified and train employee that help in smooth, easy and fast
delivery of services.
Process: This includes various activities that are important for delivery of service and standard
should be met while delivering service in order to make sale. British Airways flight team is
responsible for providing safe operation of fleet and recruiting and training of pilot.
Segmentation, targeting and positioning
Segmentation, targeting and positioning simplifies the process of market segmentation by
dividing the buyer market, selecting the target market and position its product and service in
order to achieve objectives.

Segmentation: It involves dividing market of potential consumer on the basis of different
characteristics into various segment or groups. Each segment is composed of customer that have
same taste, preference, needs interest and thus will respond similar to marketing strategies. So
the company has segmented on the basis of geographic, demographic, Psychographic and
behavioural. This segmentation has been done in order to identify and evaluating nature of each
segment in the market that can help company in achievement of goals.
Targeting: It means to concentrate on a particular group of customers and the focus of this is to
solely serve those customers which have similar interest and needs. British Airway offer
different service to its different customers so as per the segmentation it fulfils the needs of the
customer. On the basis of target customers there are four services offered such as economy,
premium economy, executive and first class in order to satisfy the needs of the customers.
Positioning: It refers to the image of brand or product in the minds of the customers so that they
prefer the product of one's company in relation to competitive product. Company distinguish the
product and use marketing mix tools in order to get position of their product and brand in minds
of customers. British airline has created its image of product and brand in the mind of customer
by offering good facilities to the customer thereby satisfying their needs, make them happy and
has increase the loyalty among the customers.
Relationship of marketing department with other functional department
Covered in poster.
CONCLUSION
From the above report, it can be concluded that marketing plays an important role in
airline industry in achievement of organizational objectives. Marketing strategies and program
also help the company in achievement of organizational objective in an ethical manner. This
report also conclude about the marketing principle and concepts that are use in smooth
functioning of daily operations. Presently these report also conclude cross- functioning
relationship of various department in British Airways.
RECOMMENDATIONS
 British Airway provides service to its customer, service is an intangible thing so the way
it should be offered should be good.

 The company should identify various marketing strategies and program that will help the
company to achieve their objectives.
 The company should maintain good cross relationship between various department for
smooth functioning of an organization.
 British Airway should pay more emphasis on objective should be achieved in an ethical
manner.
 It has to improve and innovate its marketing strategies as per the scenario in order to gain
competitive advantage in the market.

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Online
Bhasin Hitesh, 2019. Marketing Strategy of British Airways — British Airways Marketing
Strategy.[Online]. Available Through: <https://www.marketing91.com/marketing-
strategy-british-airways/>.

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