British Airways Marketing Plan: New Services, Analysis, and Strategies

This report presents a comprehensive marketing plan for British Airways (BA), focusing on launching new passenger and cargo services in seven new destinations, modernizing its aircraft fleet, and offering new services. The report analyzes external factors affecting marketing planning using techniques like PESTLE and SWOT analysis, considering market trends, competition, and customer preferences. It also identifies and addresses barriers to marketing planning, such as demographic, economic, technological, political, and cultural factors, offering solutions for BA to overcome these challenges. Furthermore, the report outlines a marketing plan for launching new services, including marketing objectives, customer and competitor analysis, and segmentation, targeting, and positioning strategies. It also explores techniques for new product development and provides recommendations for pricing, distribution, and communication mix. Finally, the report examines ethical issues influencing marketing planning and suggests how BA can respond to consumer ethics and their impact on marketing strategies.

MARKETING PLANNING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Changing perspective in marketing planning........................................................................1
1.2 British Airways capability for planning its future marketing activity..................................2
1.3 Techniques for auditing and analysing external factors affecting marketing planning........2
1.4 Auditing and analysing external factors affecting marketing planning of British Airways. 3
TASK 2............................................................................................................................................4
2.1 Assessment of main barriers during marketing planning......................................................4
2.2 Steps that British Airways can take to overcome the barriers of marketing planning..........4
TASK 3............................................................................................................................................5
3.1 Marketing plan to launch new services for British Airways.................................................5
3.2 Reasons for marketing planning being an essential part in the strategic planning process of
British Airways...........................................................................................................................7
3.3 Techniques for new product development............................................................................7
3.4 Recommendations for pricing policy, distribution and communication mix........................8
3.5 factors affecting effective implementation of marketing plan..............................................8
TASK 4............................................................................................................................................9
4.1 Ethical issues influencing marketing planning.....................................................................9
4.2 British Airways responding to ethical issues........................................................................9
4.3 Consumer ethics and their effect on marketing planning in British Airways.....................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing planning plays an important role in the growth of the organisation. It is
required to adopt appropriate marketing strategies to make the project a successful one. British
Airways is one of the largest airlines in United Kingdom based on the fleet size and stands
second based on the passenger it carries. It is flying to more than 170 destinations in nearly 80
countries. It offers low fares at extensive global route network flying to and from centrally
located airports. The company has been operating worldwide tapping various countries globally.
According to the given scenario, the company is planning to introduce passenger and cargo
services in 7 new destinations (Harrison and Reilly, 2011). It has also been planing to provide
modernise aircraft fleet and offer new services to its customers. The company is already a brand
leader than it will be easy to penetrate in the new market at new destinations. The report suggests
a marketing plan to introduce these new services in the market. Various techniques of auditing
and analysing external factors affecting marketing planning are also discussed. Further, it focuses
on barriers of marketing planning and ways to eliminate them are discussed. In the end the report
talks about the ethical issues an organisation face are also been discussed.
TASK 1
1.1 Changing perspective in marketing planning
Marketing Planning consists of all the activities and marketing efforts that British
Airways (BA)’s marketing manager will execute to advertise their new products and services.
Planning updates about many factors like existing competition in market, traditions, customers
needs and wants, at what price they are willing to buy products and services, and how to make
product reach customers easily. Before marketing planning, BA needs to analyse external
environment like Political, social impact, economical impact and technological impact which
reduces the market risk before launch of products and services. These days, all the activities
conducted by the companies are customer focussed. It not only increase the customer
engagement but also increase customer's loyalty towards the company (Liu, Chen and
Balachander, 2016). BA analyses the following two concepts before the launch of new services:
 Selling Concept: It is an idea to attract buyers towards company's services, which
includes, promotion techniques, easy availability, affordable prices etc. BA uses these
tactics to before introducing an idea on a large platform.
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 Marketing Concept: It refers to researching customers needs and wants and making the
services easily available for them. BA uses this technique where the company by
emailing them about each and every updates and schemes it s introducing in the market.
Growing presence of the company globally is continuously increasing the market share
and brand name (Sheth and Sisodia, 2015). Therefore, prioritizing the launch of products and
services is a key motive of the company.
1.2 British Airways capability for planning its future marketing activity
In evaluating planning, BA needs to discover ideas, issues and concerns and implement
selected alternatives. The Manager needs to set major goals with deadlines in order to complete
tasks on time. Establishing task force, skilled labourers, leader to help workers while execution
and to create a smooth roadmap. Fleet Planning is the most important planning for airlines
because it helps to estimate the potential number of passengers for the new fleet (Smith and
Smith, 2016). The company's manager also needs to analyse internal and external environment in
order to create strategic plan for the new product development. Manager should come with new
plans and strategies in order to serve quality services to customers. BA creates strategic plan
after completion of maximum period of 3 years. Basically Strategic plan covers 3 major steps:
Strategic Analysis is discovering internal and external business environment (Strauss, 2016).
This includes SWOT analysis and PEST analysis in order to keep a check over strengths and
weakness of company and political, economical, social and technological factors.
 Strategic Evaluation: It estimates performance related to projects, activities which are
going on to reach the ultimate goal. This is done my manager or executive in charge of
company.
 Strategic Implementation: It is execution of designed plan. According to it, manager
keeps a check over available resources, increments, reward etc.
Also, British Airways follows GE matrix in order to verify circumstances of growth in
market and in new markets. Manager also review, airline quality which compares BA and its
competitors.
1.3 Techniques for auditing and analysing external factors affecting marketing planning
It is important for the companies to understand the customers. It involves finding all the
appropriate factors and then analysing them. Several external factors analysing techniques are
discussed below:
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 PESTLE analysis: It involves analysing various factors, such as, political, economic,
social, technological, legal and environmental (Varella, Frazão and Oliveira, 2017). On
the basis of these factor it can be assessed that whether the product or services being
offered are feasible enough to implement.
 SWOT analysis: British airways can also conduct SWOT analysis, that is strength,
weakness, opportunities and threats of the introduced service. It will help the company to
assess that whether it will able to compete in the existing market or not.
 Taste and preferences: Consumer's taste and preferences decides that in what manner
the company will be approaching its customers. It will help to British Airways to sell its
services more efficiently and effectively
1.4 Auditing and analysing external factors affecting marketing planning of British Airways
Out of the above mentioned methods, the most commonly used method of auditing and
analysing external factors is SWOT analysis. The SWOT analysis of British Airways can be
conducted in the following manner:
Strength
 High market share
 Brand image
 Innovative product and services
 High customer base
 Backed by UK government
 It has its own engineering branch to
maintain its aircraft fleet.
 Tech savvy company
Weakness
 Employee unions
 Under penetrated in global market
 Over dependence on UK market as
50% of the companies revenues are
from UK only.
Opportunities
 Expand its market in various
countries
 Less competition due to pressure
from the government in UK
 Expand in Cargo services
Threats
 Competition in the market is high
on global platform
 Aviation industry is highly
regulated by the government
 UK enjoys improved infrastructure
and transportation facilities which
reduce the use of cargo services of
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British Airways
TASK 2
2.1 Assessment of main barriers during marketing planning
There should be a strong marketing planning for successful organization. However,
sending useful information every time to the customer may not be an easy task. There are various
barriers and complications an organisation need to face while doing marketing planning. Some of
them are listed below:
 Demographical factors: Changes in the trends is the major barrier of marketing planning
(Yan-hong, 2015). The planning should match the desires, age, distribution and career
attitude of the customers. These factors plays crucial role in satisfying the needs of the
customers.
 Economical factors: The economical condition of the company as well as the country is
required to be considered while doing marketing planning. Inflation, recession, currency
exchange rates has a great impact on it.
 Technological factors: The technology, which is not competent enough to address the
demand of the customers act as a barrier in marketing planning. The plan need to be
based on the installed technology so that the customers can be satisfied with the level of
productivity.
 Political factors: Change in government regulations and legal issues affect the marketing
policies of the company. The company has to consider and implement all the rules and
regulations issued by the government while making marketing strategies.
 Cultural factors: Variation in customers lifestyles and values also affect the marketing
policies of the company. The promotional activities are required to be altered based on
acceptance of the customers.
2.2 Steps that British Airways can take to overcome the barriers of marketing planning
The main objective of marketing planning is to approach the customers in such a way that
either they end up buying the product or they become potential customers for the company.
British Airways, being in aviation industry, required to take reasonable steps so that the
complication involved in marketing planning can be eliminated. In order to understand the
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barriers of marketing planning in a better manner, British Airways is required to opt for the
following measures:
 Scanning the environment in order to understand the changes of mindset of people and
applying the changes in marketing activities as well (Britain’s visitor economy facts.
2015).
 Stay updated about the new rules and regulations emerging in UK in aviation sector.
 To understand updated technologies being available in the market that can be used by
British Airways in their airplanes.
 Constant review on policies and procedures of other country, where British Airways is
providing its services.
 British airways can give constant training to its marketing employees about the new laws
emerging in aviation sector in order to keep them updated.
 Marketing manager can take initiatives to recognize the latest technology that are
available in the market which can give best results and higher customer satisfaction.
TASK 3
3.1 Marketing plan to launch new services for British Airways
British airways is planning to expand its passenger and cargo services to new destinations
worldwide. It also wants to grow by modernizing its aircraft fleets and offer to new services to its
passengers. According to Board of Directors of British Airways, the company will be able to
boost its revenues and get advantage over its competitors. It is important for the company to have
a concrete marketing plan in order to market new services among the customers. British Airways
can take up the following activities in preparation of marketing plan:
 Marketing Objectives:
◦ To improve services of the flight
◦ To launch passenger services to 7 new destinations.
◦ To launch cargo services to new destinations
◦ To boost overall company's revenue against the competitors.
 Customer analysis: It is an irreplaceable step where British Airways can understand the
tastes and preferences of the customers. As the potential customers of British Airways are
those people who take airlines services to travel nationally or internationally.
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 Competitors analysis: Through this step, the company will able to analyse its current
and potential customers in the market. There are various airline companies which provide
similar services in UK such as, Lufthansa, Emirates, Jet airways, Virgin Atlantic. These
companies provide effective services and facilities to the customers such a s food,
entertainment, pick and drop facilities etc. British airways can develop these facilities to
its passengers in order to develop its customer base. Marketing strategy:
◦ Segmentation: People who prefer comfort and find the air travel, reliable. It can be
done based on geographic, demographic, Psychographic, behavioural and travel and
tourism industry base (Thomas Cook extends payment times for suppliers. 2016).
◦ Targeting: Corporates, middles class and upper middle class people. The people who
are involved in import and export businesses can also be targeted for cargo services.
◦ Positioning: To create advantageous us position in customer's mind by providing
them unique services that are not provided by any competitors.
 Promotional activities:
◦ To tap the customers at social media platform by updating blogs, twitter and facebook
page etc.
◦ To use posters and advertising banners in the existing airplanes of British Airways
◦ To use email services, introducing them to new services and destinations
◦ Introductory discounts on booking tickets for newly added destinations.
◦ Mobile offers only can be introduced to promote the usage of mobile application of
British Airways.
 Proposed time line and marketing budget
Budget category Time frame (in
weeks)
Budget
(GBP)
Demand generation 4 300
Digital marketing 2 200
Direct marketing 3 930
Events 3 6000
Documentation 1 5800
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Service marketing 2 490
Field marketing 8 1200
Magazine article 1 2000
Total budget 24 weeks 16920
 Budget implementation and performance analysis
British airways can implement the budget being prepared above. Performance of
the marketing plan can be analysed by comparing revenue generation of the current year with
that of previous year. The company can also assess the current market share. British Airways can
assess the increase in new customers and find out who all has taken new services being
introduced by the market. The company can also evaluate whether the marketing budget allotted
to promote new services was sufficient enough to meet then objectives. Moreover, to what extent
the company is able to achieve its objectives of introducing new services in the airways.
3.2 Reasons for marketing planning being an essential part in the strategic planning process of
British Airways
Marketing plan helps to assess the performance of the implemented marketing strategies.
Effective marketing plan increase the sales on the services and enhance the revenue of the
company. It ascertains correct positioning of the products and services being introduced by the
company. There are various advantages of marketing planning which plays essential part in
strategic planning. Some of them are listed below:
 It focusses on target market
 It identifies the demand of the customers
 It determines the demand of the product
 Identifies potential customers
 Analyses competitors and competitive advantages.
3.3 Techniques for new product development
New product development involves several steps. They are:
 Idea generation: The idea gets generated with market research and analysing areas of
growth
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 Idea screening: The idea is screened to find out that if it is feasible or not.
 Concept development and testing: The customer and experts feedback is taken in order
to understand their perspective.
 Market strategy development: It identifies the type of marketing strategy that can be
used by the company to attain the specific goal.
 Product development: Development of product or services based on the idea being
generated by the company.
 Test marketing: The developed product is then send for test marketing before applying
it on large scale in order to assess the actual performance of the idea.
 Commercialization: Implementing the plan on large scale in full swing.
3.4 Recommendations for pricing policy, distribution and communication mix
Pricing policy will be based on the product and services, the company is offering. Prices
needs to be decided by British Airways, considering the prices being offered by its competitors.
It decided the proportion of profit, it is going to earn with respect to the investment being made
in introducing new product or services in the product or service line.
Distribution mix represents the place where this product or services will be transported to
the end customer. In case of British airways, the ad on services will be provided at the airports or
in the plan only. In case of cargo services, it can make collection centres at various places in
order to make the facility easy for the customers. It ensures that the customers get good quality
of services from the company's end.
According to communication mix includes the areas of spreading awareness about the
new services. British Airways can use various promotional tools such as advertising through
newspapers, magazines, personal selling, social media platform, and direct selling. The company
can use this tool as a strength and convey the message to the target group.
3.5 factors affecting effective implementation of marketing plan
Companies use various factors of marketing in order to succeed. However, there are few
constraints due to which marketing plan become ineffective. Few of the constraints are listed
below:
 Budget Constraint: Budget plays an important role; if marketing department is not
offered appropriate budget, it will not able to conduct its market research properly.
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 Legal aspects: The marketing plan adopted by British airways should not be against the
legislation of the country. Otherwise, the company may face legal issues.
 Management not supportive: It is important to have top level management support as
they are the people helps in making various strategies for the new launch. If there is no
support from them, marketing department may face problem in achieving organisational
goals.
 Economic constraints: Various factors such as inflation, recession, high interest rates,
currency exchange rates are some economical factors.
TASK 4
4.1 Ethical issues influencing marketing planning
Every company is required to follow ethical regulations at the workplace. The
fundamental framework to analyse marketing audit are:
 Value oriented framework: The services provided by the company should be valuer for
money for the customers.
 Stakeholder oriented framework: It refers to the marketing activities which are
stakeholder focussed. The company should make sure that the activities performed in the
company are beneficial to the stakeholders.
 Process oriented framework: It refers to the activities being performed by the company
are in a process and should not violate any rule which have been laid down by the
external or internal environment.
British Airways ids advised to take care of ethical issues such as health and safety of the
employees, updated technology, transparency at the work place and fair working conditions for
the employees. These are the few human rights that every employee working in an organisation
deserves. The company is also advised to take care of ethical marketing where customer has the
right to know each and every aspect of the product. If the product or services carry any
discrepancy then it is the responsibility of the company to disclose it to the customers.
Misleading publicity should not be adopted by British Airways. It can result to customer
dissatisfaction, loss of business opportunities, legal actions, destroy of brand image etc.
4.2 British Airways responding to ethical issues
It is the responsibility of every company to work ethically in the market. According to the
legislation of UK, various rules and regulations are being issued in order to protect the society as
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well as the rights of the stakeholders. British airways have set rules and regulation at workplace
in order to maintain morality and ethics in the organization. The company has appointed whistle
blowers who keep a check on activities in the organisation and address it to top level
management. The company also appoints mystery shoppers to keep a track of quality on the
flights. For instance, British airways appointing people to find the unethical activities going on in
the company or in flights.
4.3 Consumer ethics and their effect on marketing planning in British Airways
Consumer ethics refers to the business practices and activities that British Airways
follows in their regular operations for the ethically trading with the consumers. It is essential for
the organization to consider the ethical principles and policies while dealing with the users
considering their responsibilities towards customers. There are number of ethical practices that
BA needs to consider such as affordable pricing mechanism for the planned services at new
destinations, health and safety requirement, standard quality of products & services and reliable
marketing to provide valid and authentic information to the prospective buyers. Moreover, it is
essential for the company to respect consumer rights by adhering with the necessary ethical
policies and legislations. Complying with the environmental laws & policies i.e. waste
management, reduction in carbon emission and others will be useful for maintaining ecological
integrity for the society.
CONCLUSION
From the above report, it can be articulated that marketing planning plays an important
role in the growth of the company. A set procedures of marketing is followed in order to evaluate
and approach potential customer. According to the case of British Airways, various aspects of
introducing new services are studied in order to find its feasibility. Further, the estimated budget
of GBP 16920 have been calculated which will be required to market the services.
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