Marketing Plan Report for British Airways Launching New Services

This report provides a comprehensive analysis of British Airways' marketing plan, examining its evolution, current strategies, and future prospects. The report begins with an introduction to marketing planning and its changing perspectives, followed by an evaluation of BA's capabilities in this area. It then delves into organizational auditing using SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. The core of the report focuses on developing a marketing plan for a new service launch, including discussions on marketing mix elements, barriers to marketing planning, and strategies to overcome them. Furthermore, it explores the significance of marketing planning in strategic planning and the techniques for new product development. The report also addresses ethical issues in marketing and their impact on BA. Finally, it concludes with a summary of findings and recommendations. Porter's Five Forces analysis is also included to evaluate the competitive landscape, assessing factors such as supplier power, buyer power, market entry barriers, competitive rivalry, and the threat of substitutes within the airline industry.

MARKETING
PLANNING

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
1.1 Review the changing perspective in marketing planning ................................................3
1.2 Evaluate BA ability for planning its future marketing activity........................................4
1.3 and 1.4 examine techniques for organizational auditing .................................................5
TASK 2......................................................................................................................................7
2.1 Using appropriate theories, assess the main barriers to marketing planning and examine
how BA may overcome these barriers ..................................................................................7
TASK 3......................................................................................................................................7
3.1. Based on your analysis in Task 1; write a marketing plan for the launch of a new
services for BA.......................................................................................................................7
3.2. Explain why marketing planning is essential in the strategic planning process for BA. 8
3.3. Using BA, examine techniques for new product development.......................................8
3.4. Justify recommendations for pricing policy, distribution and communication mix for
the new product. ....................................................................................................................9
TASK 4....................................................................................................................................10
4.1 Using BA, explain how ethical issues influence marketing planning............................10
4.3 Analyse examples of consumer ethics and their effect on marketing planning in BA. .10
CONCLUSION .......................................................................................................................11
REFERENCES ........................................................................................................................12

INTRODUCTION
Marketing planning can be defined as the plan made by the organization to aware the
customers about the products and the services which they will render to their customers. it is
the strategy made by the organization which include all process starting from promotion,
pricing , distribution etc. this report talks about the British Airways which is one of the
largest airlines in the United Kingdom and it is known for its luxurious survey which they
provide to their customers. Further, swot and pestle analysis is carried out to know the factors
which will directly or indirectly affect the functioning of BA. On the other hand, barriers of
marketing planning and the solutions related to it will be described effectively. Besides this, a
new product will be developed and for that the whole marketing plan will be carried out to
effectively market their product.
Company’s overview
British airways are the largest airline in the United Kingdom according to the size of
the fleet. If it is measured by the passengers then it is the second largest airline. The
organization was established in the year 1972 and it is operating in the industry from very
long time. in the year 2007, the organization purchased 12 airbus, 24 boeing, this shows the
financial capability of the firm. On the other hand, it is famous for the marketing which the
firm perform to attract their customers. In the year 1989 the musical theme was used for the
advertisement as this attracted the customers towards the promotion which was made by
British Airways (About British Airways, 2017). Besides this, they are in relation with the
Saatchi and Saatchi agency which are famous for creating advertisement. Through this, it can
be witnessed that the organization put emphasis on the advertisement and marketing of the
products and the services. Other than creating the advertisement, British Airways is the
official airline of the Wimbledon championship and even it was the partner of the Summer
Olympics 2012. This shows that it is giving its presence in all the fields. It is the contributor
in main events which are held in England.
1.1 Review the changing perspective in marketing planning
Marketing planning is one of the crucial functions of the functions. The organization
can attain success if they are effectively planning their marketing activities. But according to
the increasing competition and changing the needs of the customers, concept of marketing
planning has been changed significantly.

 Customer viewpoint- In the earlier time, BA airlines concentrated on the particular
countries or the cities. But due to the increasing competition, they are planning to
expand their services in 7 new destinations. This is because the customers demand is
increasing. To make the airline successful, the firm will be required to attract the
customers by making them aware about the services (Aurelian and et.al., 2010). In the
past time, marketing was not given emphasis because the customer approached the
BA for fulfilling their needs and requirements. But with the changing time, it is
required by the organization to lure the passengers by carrying out aggressive
advertisement.
 Developing competitive advantage- the concept of marketing planning has been
totally changed because it was used as a tool for promoting the services. But now
marketing planning has become a strategy for creating competitive advantage. In case
of BA, they need to focus on the marketing strategy because it is perceived that if the
marketing of the services are carried out effectively then the product will also be good
(Lovelock, 2011). In the previous time, the competitive advantage was dependent
upon the supply chain or the product, but at the present time, marketing planning has
been used to develop competitive advantage.
1.2 Evaluate BA ability for planning its future marketing activity
Marketing planning is the strategy which requires finance, human resources, and
physical resources to carry out the future planning for BA. If there are effective resources
with the firm then they can effectively plan their strategy to conquer the competitors. In case
of BA, as it is one of the oldest airlines so it has several abilities which can help in planning
the marketing activity (Shankar and et.al., 2011). In case of finance, it has huge amount
which the organization can spend on its marketing activity. As for promoting the services, the
organization need finance so that they can adopt different sources through which they can
make the passengers aware regarding the services which they will be render to the individual.
On the other hand, brand recognition is also one of the most important ability which is
possessed by the British airways. It is very beneficial that all the passengers recognize the
brands as this helps the organization to easily attract the customers. In this case, through the
marketing planning they are not required to make the passengers aware about the brand but
they will direct promote their services (Wang and Pizam, eds., 2011). Besides this, with the
positive brand image, the customer will easily trust the services provided by the airlines.

On the other hand, BA posses the efficient workforce they have employees who are
expert in their work. Besides this, the organization is further known for its technical and
engineering department. British Airways have effectively adopted the technology regarding
the customer services and other means to provide convenience to the individual. This will
help the organization in effectively making marketing planning with the help of their
engineers. These are the abilities which are possessed by the BA which will help in planning
marketing activities.
Marketing Mix theory
Product: One of the best airlines services is offered by British Airways. It offers service
customization to its customers. Various choices are provided by it.
Place: Airlines services are provided across the globe over 400 destinations. For selling
tickets, sales agents are available. Online facility is also provided by it for booking tickets.
Price: As compared to other airlines charges are higher of British airways but on the same
hand services offered are also of high quality.
Promotion: Innovative approach is used by airways for promoting brand. Mobile applications
has been developed for the comfort of customers. Online booking has made booking tickets
much easier. On certain occasions, special discounts are made available as a part of
promotion.
1.3 examine techniques for organizational auditing
Organizational auditing is important for the organization to analyze and evaluate the
areas which need to be focused by the firm. Besides this, this is essential because BA can
identify their actual position in the market. Further, organizational auditing will help to
analyze the weak areas which need improvement (McDonald and Wilson, 2011). The
organizational auditing will be carried out by using SWOT and PESTLE analysis.
Strength
 It has more than 90 years experience
in the airlines field. It is operating its
services in 170 locations.
 It has the strong engineering tea, to
maintain the aircraft fleet if any
problem arises (Kobylanski and
Weakness
 The major weakness that more than
50% of the revenues comes from the
UK market.
 They are operating their activities
worldwide but still, there are several
undeveloped countries where the

Szulc, 2011).
 The major strength is that it has
support of the government.
airlines have not planned their
operations.
Opportunity
 They have huge opportunity to
expand their market in the developing
countries because the needs and
demands of the infrastructure are
increasing.
 There are several opportunities for
the BA to expand their market as
small players are exiting the industry
due to government rules and
regulations.
Threat
 Government rules and regulations are
changing in the short period of time.
They have raised the pay, safety and
security which are hampering the
operations and the firm has to spend
more money (Sadjadi, Yazdian and
Shahanaghi, 2012).
Pestle analysis Political analysis- This factor includes the taxes which are made by the government.
Due to the unstable environment of UK, the government focused on the saving the
finance. This affected the expansion of the BA.
 Economical analysis- due to the less purchasing power and less credit facilities for the
customers, the individual have not gone for the holiday trips. This affected the profit
and the growth of the British Airways.
 Social- cultural factors- The target of this airline is basically the individual who are
going for the holiday trips. This is because they are flying to many destinations so
they can fulfil the need and requirements of the customers. Besides this, they are
ahead in the competition with the domestic budgeted flights of Europe as they
provided the customers with the better services (Whalen and Holloway, 2012).
 Technological factors- BA have introduced the self service and the check in machines
so that the customers do not have to wait in the long line. As it can save ample of
minutes of the customers.
 Legal factors- There are several legal factors which affects the operations of the
business. The airlines and the transportation facilities are controlled by the legal
norms. BA comes across the infrastructure facilities and the slot capacity which are in

the hands of the government (Shankar and et.al., 2011). According to the slot only,
the organization is required to make the schedule of the flights.
 Environmental factors- The airline industry has huge impact on the environmental
factors. Due to the increasing global warming and the environmental issues, the
government had made the regulations to curb down the radiations which come from
the aircraft. Besides this, they are also focusing on reducing the emissions so that air
pollution can be reduced to a great extent.
Airline industry greatly affects by the economic conditions of the country. British
airways tries to remain at the top by providing best quality services to its customers. It
makes all possible efforts in order to make profits and provide safety and security to
the passengers.
1.4 Organisational audit that affect marketing planning
Porter's Five forces Analysis for British Airways:
 Supplier Power: Aviation fuel for the planes of British Airways is taken by other
companies. Competition prevails among the suppliers in order to gain profitability.
For planes, British Airways depends on two companies that is Boeing and Airbus.
High negotiation power is commanded by them.
 Power of Buyers: Revenue is generated from passengers only. Passengers have wider
scope of flights to travel across Europe which may offer tickets at lower prices. But
outside the Europe BA has more impressive and connecting network.
 Market entry Barriers: A company who wants to enter into industry of airlines has to
face various barriers. Huge amount of capital investment is required. British airways
might face challenges due to availability of several options at affordable cost.
 Competitive rivalry: Both short and long haul services are provided by the British
Airways. BA does not face much competition in long haul but short haul flights often
face competition due to emerging new flights which are offered by new airlines at
lower prices.
 Threat of Substitutes: substitutes for flights includes road transportation, trains etc.
these are beneficial only at short distances. As a result they are threatening for the
airline companies which are offering short haul flights.
From the analysis it can be concluded that key suppliers for the British Airways are Boeing
and Airbus which holds bargaining power. In the airline industry there is no such rivalry as

BA offers flights globally. Danger and substitutes are also low that represents pleasing
market for BA.
TASK 2
2.1 Using appropriate theories, assess the main barriers to marketing planning and examine
how BA may overcome these barriers
There are some theories which can be used in British Airways to assess the barriers in
marketing planning which can help to develop a strong marketing strategy for the
organisation. There are many barriers which are complicated and very puzzling when it
comes to customer during marketing planning is taken into consideration. The theories used
are SWOT analysis and PESTEL analysis through which they will come to know about the
barriers in the British Airways, by looking at the strengths, weakness, threats and
opportunities of the organisation (Hakimpoor, Tat and Arshad, 2011). And even by knowing
the political, economical, social, technological, environmental and legal thing going on in the
organisation. Sometimes it is also enables to identify its own target market. It makes you
think about both long and short term strategies of the market. It also gives the clearness about
what to do and which marketing tools must be applied. There are some strategies which are
planned and are bad and they leave the customer with a bad marketing and communication.
Porter's Five forces can be used to identify competitive advantage for the company and
substitutes that may affect profitability of the BA. It offers wider range of flights to its
customers across the globe therefore, rivalry does not have impact on airlines. Lack of
knowledge and skilled employees also turns out to be barrier.
To overcome through these barriers in British Airways there are some strategic
planning which are very important for the management. If a company lacks in skilled
employees it can be analysed using SWOT analysis by which their strengths and weak points
can be examined. (Lee and Kotler, 2011). There are some tasks which are analysed and are
overwhelmed by the amount of information on the large basis and can help in overcoming
with the issues that create barrier, even if these informations has lot of problems in it, it may
create a barrier can be resolved. They tell us what to do and how to do and analyse the
problem by using theories which helps the managers to process the strategic analysis. They
set the agenda for overcoming by setting the agenda which as barrier related to it. Market
analysis can help in identifying rivals in the marketplace. Their strategies should be evaluated

to make improvements in the company plan. By determining priorities failures in
achievement of objectives can be done.
TASK 3
3.1. Based on your analysis in Task 1; write a marketing plan for the launch of a new services
for BA.
On the basis of SWOT and PESTEL analysis there are some marketing plan which
can be launched for the new services for British Airways. The strength of the organisation is
very important if they want to generate some new services. As being strong the strength is
important part. The weakness may overcome by ignoring all the barriers and creating new
services by deleting all the weaknesses. To generate new services they must know about the
opportunities which are to be generated by including new things which are important for
British Airways. And by overcoming the threats they can know about all the negative things
which are to be ignored while generating new services (Terpstra Foley and Sarathy, 2012).
Every organisation has political factors which influenced and are affected by the marketing
strategies but they can also be overwhelmed for new services. They comprise the regulations
and legal issue in the organization. They also have an economic factor which is
internationally and locally affected in business. Their impact on nature is very competitive
which are faced by the British Airways. Social and environmental factors are related to with
are level of production. Technological factors are important for the competitive advantages,
which reduces barrier and has minimum efficiency in the level of production (Smith and
Zook, 2011).
Marketing Plan is developed by situation analysis.
Objective : Aim and targets are required to be specified and the purpose of the plan is
identified in this stage.
Pricing: It involves pricing of the product offered should be finalised by performing
cost analysis. Marketing budget is required to be set up.
Distribution: Promotional strategies can be formulated to make customers aware of
the products and how the product would be made available to the customers is also analysed.

Communication: Methods of communicating with customers such as on emails,
customer help centres are identified.
3.2. Explain why marketing planning is essential in the strategic planning process for BA
The marketing plan is very important and has a wide process in which whole British
Airways or a part of it is involved in the marketing strategies. The relationship between both
has a purpose in which marketing planning and strategic planning are involved. The
objectives, strategies and goals are measured as planning in strategy. They are designed to
provide and achieve departments and individuals goals and objectives (Aurelian, Adrian and
Petronela, 2010). Strategic planning has external and internal opportunities and effects which
are considered while creating the strategy and tactics. They help in identifying new
opportunities and new competitive threats as well. There are some steps which are involved
in strategic planning process which includes marketing planning. They identify the whole
SWOT analyses and help to achieve the overall planning and goals of the British Airways.
The directions for this plan are giving by including both planning and strategic planning and
provide the proper direction to the organisation (Lovelock, 2011).
3.3. Using BA, examine techniques for new product development
Product development involves following procedures:
 Idea generation: The techniques used for new product development in British Airways
they must have the idea which are related to market research, competitors, customers
etc. this involves screening of such ideas in which they know what new product
should they bring in the new market and there should be no waste of such products.
 Idea Screening: screening process involves selected idea to be analysed whether it is
appropriate for the business and to check its profitability for the British Airways.
British Airways must know about the concept of developing and testing in which the
organisation comes across all the feasible ideas and take over those ideas which are
target oriented (Kobylanski and Szulc, 2011).
 Concept Development: They must be aware of marketing development and strategies
about how the product or services will be launched within the market and lying out
marketing mix strategy of the product and the segmentation, positioning and target
strategy and expected sales and profit. Idea screened is now developed into concept

and analysis is carried out to check whether it is understandable to customers.
Feedback can be taken from the customers in this stage.
 Business Analysis: After finalising concept, profitability of the concept is examined.
It can be done by identifying target industry and marketing mix strategies can be used.
The British Airways has a great idea about the product and the financial worth in the
long run of the product, and knows about the cash flow and expects a perfect life of
the product.
 Product development: Prototype of the concept is developed to for testing response
and functionality. BA can provide prototype to its customers so that response of
customers can be recorded and accordingly necessary improvements in the product
can be made.
 Testing: Testify the new product and presents the selection which are made by the
target market and see if they need any change in the new product (Lovelock, 2011).
 Commercialization: after final development of product, decisions are required to be
made regarding launching of the product into marketplace. BA has to make certain
promotional techniques for the product to promote among customers.
 Launch: A plan for launching is created to ensure product runs smoothly and make
profits for the airlines.
3.4. Justify recommendations for pricing policy, distribution and communication mix for the
new product.
The British Airways uses various policies, distribution channels and communication
mix for the new product to enter in the market. Their pricing policies are different which are
available for every class of people for their services. They maintain their policies and gives
then the value which are provided by company. Their strategies are such that their customers
are the decision makers and they decide about the price or the total amount they need to
spend (Sadjadi, Yazdian and Shahanaghi, 2012). Customers can buy their ticket at a very
base amount without any extra value added benefits and they can even use different services
that the customer requires. Their main channel of distribution is through call centres or the
agents or the online website. They also emphasizes on the accessibility of location through

fast and smooth transaction. The communication mix processes are through various channels
form where they operate their work.
British airways can make use of price penetration technique for the new product into
market. It will help in establishment of higher sales which is offered at lower cost. It will
raise sale of the product and would set up base for the company at that region. For
communicating with the customers, advertisements are the best options. It can be conducted
by social media, internet, radio, TV channels etc. Celebrities could also be hired for the
promotional campaign.
3.5. You are required to explain how factors affecting effective implementation of the
marketing plan have been taken into account.
The factors which are affecting the implementation of the marketing plan which are
taken into consideration are the current economic conditions which affect the economic and
political factors which are implemented in marketing plan. They reduce the prices and makes
changes in them. They increase the employment so that they can achieve higher level of
satisfaction to the customers (Wang and Pizam, eds., 2011). They take into consideration the
growth and the potential in the market and strategy planning. They are more focused on the
percentage of market plan which involves all the positive and negativity of the market.
Competition at market place also affects implementation process. One should
examine marketing strategies of the competitors to identify what improvements and
uniqueness can be brought into your plan.
Identification of the target market could help in determining current trends. Targeted
Audience and their needs should be examined. With this one can identify who is buying your
product and what changes are required to be implemented into product.
Qualty of the product is the most important factor that may affect marketing plan
implementation. Customer satisfaction can be only be achieved with quality services
provided to them.