British Airways: Evaluating Marketing Strategy and Key Issues

This report provides a comprehensive analysis of British Airways, focusing on its marketing strategies, the international marketing problems it faces, and the ethical issues that arise. It begins by outlining British Airways' marketing strategy, emphasizing its focus on customer service, investments in staff, and cost management. The report then delves into the international marketing challenges faced by the airline, including fuel costs, open skies agreements, and economic conditions. Furthermore, the report addresses ethical issues related to customer relations and organizational values, suggesting the application of consequentialist, non-consequentialist, and cognitive theories to resolve these dilemmas. Finally, it discusses how British Airways can mitigate risks to its reputation by expanding its advertising persuasion model and addressing ethical considerations in marketing communications. The analysis aims to provide insights into improving British Airways' market position and maintaining customer confidence.

british airways

INTRODUCTION:-
British airways are considered as the flag moves airline of the United Kingdome. British airway
is considered as the largest airline in the UK, international flights, and international destinations.
It was created in 1974. From its beginning, it has been centered at its main nucleus at London
Heathrow Airport, and it's another major center is at London Gatwick Airport. British Airways
have been faced many big problems during its working. It faced high competition and higher cost
in the mid-1990. In this assignment, we will study about the main issues faced by the British
airline during its life. After analyzing the various issues, we will apply some theories and
models to find the solutions to the problems and improve its position in the market.
ANSWER 1:-
MARKETING STRATEGY OF BRITISH AIRWAYS:-
British airway is focusing more on providing outstanding services to their existing or new
customers. The main aim of the British airline is meeting the rising expectations of their
customers, which is the main focus of their strategy which helps the airline in transferring itself
into the world's leading global premium. (Goodall, 2013) They make a various investment in
their staff and providing various facilities so that they can provide very improved services to
their customers. They want that their customers enjoy a premium service at every point of their
journey, whenever they travel with British Airline. As per the scenario of current strategies BA
is going to apply various customer's friendly strategies. These strategies prove very beneficial for
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the success of the organization and facilitate the customers by keeping them updated about flight
through text messages on their mobiles, but this facility is providing only to the business class
passengers. This facility of mobile messaging's make convenient for the customers to reach as
per timings of their flights and delays if the flight has got any delays. The main problem with
using this strategy is that other passengers did not get this facility, due to which they faced lots of
problems in their life. Secondly, British airlines followed the strategy to modify the aircraft and
make them more comfortable and more beautiful. Just because of more comfortableness lots of
people attracting towards the airlines. British airline provides many services to their customers
inside the flight so that they can enjoy their journey and wants to travel again on this airline.
Thirdly, managing the cost of the tickets considered the most effective strategy of the British
airline because Cost is considered the main factor for most of the peoples to choose the airline
because most of the people cannot afford it. Managing the prices of the tickets is considered the
main beneficial factor for the customers as well as the British airline also. Most of the peoples
are here in the world which don't look at the good facilities, but they only want the cheap tickets
so that at low prices they can buy the tickets and can experience the airline journey. Fourthly,
British airline tried to increase their responsibilities towards the corporate world and getting huge
success in the market by doing some unique things like by entering into the partnership with
other big corporate businessmen or good performance of the environment. These are the other
alternatives for the British airline to market itself in the market. By entering into the partnership,
British airline can expand its size and can perform much better in the market in comparison of
their customers. Other than these following strategies are also used by the British airline to
market itself in the market:-
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 Global: - What they offer will appeal to the customers across the globe. Increase in
British airline operation for business travelers and individual peoples will attract them
more.
 Premium: - The main motive of the British airline behind using the premium strategy is
that they want from their customers to enjoy a different and unique premium service
whenever and wherever they come into contact with the British Airline. They offer worth
paying services to their customers for winning their confidence and build a long term
relation with their customers.
 Airline: - They will remain focused on aviation- moving cargo and people is their core
business. They will introduce new products and new services to complement all this.
As per the currently discussed strategies British airline can do more business and they can offer
wide services to their passengers who help in building its image in the mind of the customers.
ANSWER 2:-
INTERNATIONAL MARKETING PROBLEMS FACED BY BRITISH AIRLINES:-
In the starting of August 2008, Airlines announced an alliance with British airlines and Iberia. If
all these are combined together, (Thrasher, 2015) British airline would be the largest airline in
the US. However, in 2008 an issue related to the ownership is arises between the Qantas and
British airline. The relation between them is believed to the worth of approximately £5 billion.
Shareholders of British airways took a 55% stake in the company, whose headquarter is situated
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in London. All remainder shares owned to be the Iberia. Following are some problems which
faced by the British airline:-
 The fuel factor: - Most important problem in front of the British was considered the cost
of the fuel. The high cost of the fuel is considered the most important issue which is
facing by the British airlines today. The high cost is considered as the main factor for all
industries, but fuel is especially a critical component for customers. Most of the analyst
estimate that a $ per barrel price increase in the cost of fuel to the airline industry is $425
mn. As per increment in the price of the fuel, airlines are feeling the effect on their
bottom line. For the British airlines, the cost of fuel is considered an important challenge
in front of the organization. (Goodall,2013)
 Open skies: - Most of the authors point out that a push to increase the efficiency and
improve its cost base has been at the forefront which has been happening at the British
airways. It is an important problem which is facing by the British airway. It is necessary
to follow necessary steps for resolving this kind of the problems.
 Going for broke: - The career of the British airlines seems very denial and very slow to
changing environment. The result produced by the overcapacity has been extremely low
fares, something that satisfies consumers but not the airlines. Due to these fares, BA
facing a problem of revenue.
INTERNATIONAL MARKETING CHALLENGES FACED BY BRITISH AIRLINES:-
The economic conditions which faced by the British organization in 2009-2010 were the most
severe they have ever encountered. As a result of a worst or big recession for last 10 years,
British airline industries faces lots of permanent structural changes which drastically reduced the
revenue of the organization in the short term and had changed the economics of running a
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premium airline permanently. (Thrasher, 2015) British airways faced a list of various challenges
for its own which includes the following:-
 Raise finance at a time of when debt market is facing continuing crisis.
 British airlines should reduce their historical cost base.
 Change working practices following in the British airlines.
 Complete their merger plan with the Iberia.
 Win an acceptable anti-trust agreement to cooperate with Iberia and American airlines.
 Tackle with their £2.6 billion deficit related to pensions successfully.
British airlines always remain optimistic regarding its future prospects. For resolving all these
problems, British airlines conducted FSAS plan which ultimately results in cost savings and
helpful in raising funds and pay off debts. The main motive of the FSAS plan was to achieve a
9% margin of operating and most recent cutting down the costs.
ANSWER 3:-
The main important issue for the British airlines is that number of passengers are continuously
reducing. This brings various ethical issues that they are facing. On it could be:-
 Customer relations in which employees and business owners must consider all ethical
issues involved within their relationship between customer and supplier. It is very
necessary for the British airlines that they use all their information in a correct manner.
 Values were considered those who investigate and attempt to resolve all ethical
dilemmas within the business world. Organization should be clear about their own values
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and motivations. In this British airlines should be guided by a strong agreement of
values.
 Know your values it is about applying our values. Before British airlines utilize their
values, it is necessary for the organization to aware about their values.
For resolving all these issues, three ethical theory can be applied. These theories are-
consequentialist theories, non-consequentialist theories and cognitive thory . The following
covers the most significant ones for business people.
CONSEQUENTIALIST THEORY:-
Consequentialist theory of the ethics claims that the morality of the actions is completely judged
on the basis of its consequences. If an action of the organization gives positive return than the
action is considered right, and if it is concluded negative result it is considered wrong.
Consequentialist theory is based on two principles:-
 Whether an act is right and wrong depends only on the outcomes of that act.
 More good consequences of an act produce, the more right and better that act.
British Airlines should choose the actions that maximize good consequences and should take
necessary and improved steps to reduce all ethical dilemmas in their organization. Different
forms of the consequentialist theory determines how good consequences can be achieved:-
(Goetghebeur,2015)
 Utilitarianism: - As per this theory British airlines should maximize well-being and
human welfare. This helps the organization in providing high satisfactions to their
passengers.
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 Hedonism: - As per this theory British airlines should maximize human pleasure.
NON-CONSEQUENTIALIST THEORY:-
The non-consequential theory is a type of ethical theory that denies that the wrongness and
rightness of our conduct solely depend on upon the goodness and badness of our consequences
of the acts. According to this theory, single rule-consequentialist theory, or multiple rules-
consequentialist theories should be considered by the organization when it faces the ethical
dilemma in the organization.
COGNITIVE THEORY:-
In this two major types of cognitive models can be used. First one is referred as analytical
models, these models provide a framework of the key elements which explain the consumer
behavior. Due to their wide scope these models are also known as grand models. Second one is
referred as prescriptive models, this model provide guidelines or frameworks to organize how
consumer behavior is structured.
These theories help the British airline organization to remove all issues related to the ethics of
the organization; this will build an image of the organization in the mind of the customers. It
helps an organization in maintaining a healthy and long term relation with its passengers.
(Goetghebeur,2015) It also helps the British airline in identifying their values and follow those
values in their day to day operations.
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ANSWER 4:-
British airlines acknowledge a major risk that could affect the functioning of the organization at
any time. The reputation of the British airlines depends on upon the feedback from consumers.
Any major and critical event generated by a serious compliance issue could have a negative
impact on the British airlines reputation. (Street, 2012) What British airlines could do it for
expand its advertising persuasion model to encompass cultural processes of representation, by
thinking of how identity can be utilized while representing market communications, consider
who is excluded from the imaginary, also understand the all ethical issues which are surrounding
representations of identity, for both strategic and social reasons, recognize the level of potential
damage which can be caused by marketing representation, and at last willing to analyze
marketing communication from ethical perspectives like in the case of international marketing
communication. So, by using the ethical theories, British airlines can resolve all its ethical issues.
They define the organization what is wrong and what is right for their organization which helps
them in gaining competitive advantage in the market. Following the ethics of the organization
won the confidence of the passengers and they are more likely to be the part of the organization
and enjoy their journey.
Where British airlines express something true or essential about those represented, with an
ethical and beautiful questions interest, and allow certain assumptions to emerge. In
addition to its ethical issues try to damage the reputation of members of represented
groups, some forms of representation that manipulate others were avoided by cutting
access to the mass media forms of representation. They did not suggest that these cultural
prejudices caused by the marketing communication, rather they stable problematic
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representational conventions. These problematic conventions can be avoided by close
ethical analysis of all marketing campaigns. In the end, British airline could gain all the
things what they are expecting for, such behavior because British airlines also have
significant cash reserves that mean it can continuously work for a long time despite
losses in the organization. British airline concluded that it currently had £1.6 billion in the
bank. British airline can do everything which it wants. All this helps the British
organization in effective marketing itself in the market. (Grundy, 2013) Through focusing
on all the issues and analyzing their solutions, British airline easily solves all problems
and can market itself by providing high satisfactions to their consumers. British airline
should be aware of the ways, which helps the organization in utilizing its strength and
opportunities. This will enable the organization to move in a right direction and can
continuously run its business for a long time.
CONCLUSION:-
After analyzing the marketing strategy, issues and challenges for the British Airways, it can be
concluded that British airline plays a very critical and significant role in the industry of tourism
and travel. It brings together a big size of the work force in terms of product, services and brand
image. British airlines achievement has been done by its communication channels which manage
all the levels of the organization in a smooth manner. It is necessary for the organization to build
employee trust and teamwork for efficient and effective functioning which helps them in
crossing all the issues and problems of the organization. If the organization is working towards a
common goal, it brings fulfillment of all visions and missions of the organization. Effective
development of business strategy leads the overall growth of the organization. The most
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important way of analyzing the performance is comparing the outcome of the last year with the
current year. This indicates the level of profit of the organization which indicates its success in
near future. If the organization is in profit, it shows the positive result of the organization
strategy. Overall fact is that the British airline is a market leader. It set all its standards and create
a benchmark in the industry for its own performance. Hence, the strategies and mission of the
organization move in the same direction as per its requirement. This helps in effective
implementation of its marketing strategies which brings positive consequences as a leader of the
market.
REFERENCES:-
Grundy, M., & Moxon, R. (2013). The effectiveness of airline crisis management on brand
protection: A case study of British Airways. Journal of Air Transport Management, 28, 55-61.
Street, M. (2012). Training people to deliver service excellence in British Airways. Training for
Quality.
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Goetghebeur, M. M., Wagner, M., Bond, K., & Hofmann, B. (2015). Analysis Of Ethical
Theories And Principles Embedded In Holistic Mcda: A Primer To Ethics-Based Appraisal Of
Value In Healthcare. Value in Health, 18(3), A101.
Thrasher, S. D., & McNabb, D. E. (2015). What Small Businesses Identify as their Marketing
Challenges: A Narrow or Broad View of Marketing?. InProceedings of the 1993 Academy of
Marketing Science (AMS) Annual Conference (pp. 558-564). Springer International Publishing.
Goodall, B., & Ashworth, G. (Eds.). (2013). Marketing in the Tourism Industry (RLE Tourism):
The Promotion of Destination Regions. Routledge.
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