Marketing Strategy of British Airways: SWOT, PESTLE, and Competitors

This report provides a comprehensive analysis of British Airways' marketing strategy. It begins with an introduction and an overview of the company's current situation, including its struggles due to the COVID-19 pandemic. The report then delves into a SWOT analysis, highlighting the airline's strengths (brand reputation, engineering branch, alliances) and weaknesses (overdependence on the UK market, high attrition rate). Opportunities (business expansion, digitalization) and threats (new regulations, competition, COVID-19) are also explored. A PESTLE analysis examines the political, economic, socio-cultural, technological, legal, and environmental factors affecting the airline. The report identifies key competitors and details British Airways' marketing strategy, including segmentation (economy, premium economy, executive, and first class), targeting (various societal segments), and the marketing mix (product, place, price, and promotion). The report concludes by emphasizing the importance of analyzing both internal and external factors for developing effective marketing strategies and the value of competitor analysis.

MARKETING STRATEGY OF BRITISH AIRWAYS

TABLE OF CONTENT
• INTRODUCTION
• SUMMARY OF COMPANY’S CURRENT SITUATION
• SWOT ANALYSIS
• PESTLE ANALYSIS
• COMPETITORS
• MARKETING STRATEGY OF THE COMPANY
• SEGMENTATION
• TARGETING
• MARKETING MIX OF THE COMPANY
• CONCLUSION

INTRODUCTION
• Market is considered to be a dynamic environment which with the change in the course of time is
constantly changing. So, this is the reason why company should develop a planned marketing
strategy on a regular basis. Marketing strategy, is said to be a culmination of various activities
considering both external and internal factors which helps a company in making a move towards
achieving the short as well as long term goals.

SUMMARY OF COMPANY’S CURRENT
SITUATION
• Growing business is not an easy task as the company needs to develop a viable idea for which it is
important to discover a profitable niche. Furthermore, with the help of this a firm can deliver the
goods and services to its targeted customers. British Airways, a flying carrier assisting in taking
people from one destination to another.
• Although, the company is the most promising firm in providing its services and facilities but due to
the pandemic (COVID-19), company is struggling in coping up with financial crisis.

SWOT ANALYSIS
STRENGTHS
 “British Airways”, its brand name is itself the biggest strength of the company. Company has an
experience of around 90 years and their significant presence in the Heathrow, Gatwick and London City is
providing them with the great privilege of connecting with other countries.
 British Airways has a good return on the capital expenditure they do thus, as compared to other companies
they are successful in executing their new projects.
 In terms of technology, company has its own engineering branch which makes the maintenance of its
aircraft fleet easier. In the company’s maintenance lines around 70 airports across the world are included.
 Concerning the future actions, British Airways is the first one to participate in developing the first global
pricing system (CORSIA – Carbon Offset and Reduction Scheme for International Aviation).
 Moreover, company has an alliance with almost all the international airlines such as Qantas, Qatar
Airways, TAM Airlines etc.,

CONTINUE..
WEAKNESSES
 Company’s overdependence on the market of United Kingdom is the biggest weakness and this can
be evidences because company generates around 50% of the revenues for UK market itself.
 Attrition rate is higher for the work force and this is because company spends a huge amount of
money in providing training and developing to its employees as compared to its rival companies.
However, they don’t get enough returns from the same.
 In some situations, company doesn’t effectively evaluate the forecasted demands and mis out the
opportunities of providing efficient services and facilities to its customers.

CONTINUE..
OPPORTUNITIES
 With the change in course of time and increase in the demands of interconnectivity, British
Airways, has a great opportunity of expanding its business in other areas as well. Developing
economy will help the company in improving its revenues and fulfilling the growing demands of
customers.
 Digitalisations and technological expansion can help the company in enhancing its customer base.
Moreover, for better results, British Airways can use machines and digital technologies for better
analytics and results.

CONTINUE..
THREATS
 New government rules and regulations has always come up as a biggest threat for the company. As
they had to make changes in their marketing strategies which takes extra time and money.
 Competition in the market area, there can be a possibility a new company with its innovative
strategies holds a better position in the market area.
 Spread of Coronavirus, is affecting the airlines and companies are struggling a lot to maintain a
proper revenues and profits because most of its flights are being cancelled.

PESTLE ANALYSIS
• Political: In relation with aviation industry, political factor plays a crucial role and for doing this it
has many reasons but one of the major factors is stable government because it leads to growth.
Moreover, political policies help organisation in creating a better environment where companies
can run their business effectively. In context with United Kingdom, all the activities of aviation
industry are run under or regulated by EU legislations and includes regulations like safety,
operating licensing etc.,

CONTINUE..
• Economic: United Kingdom has a stable economic policy but sudden changes can give rise to
issues. Same in the year 2020, a drop of around 20% was recorded in the GDP of United Kingdom
because of Covid-19. In order to eliminated the spread of this infectious disease airlines has to
cancel or cut down most of its flights and companies who are operating its business under aviation
industry find difficulty in managing its revenues and profits.

CONTINUE..
• Socio-cultural: This mainly includes the demographic changes and according to the current
scenario, millennials are the one who has developed a travel habit whenever they have leisure time.
Moreover, companies are also providing services accordingly majorly concerning about safety. But
this time when the pandemic (Coronavirus) is creating a chaos several airports are shut down and so
travelling. People are avoiding travelling to places for their own safety other’s as well.

CONTINUE..
• Technological: In this matter United Kingdom is excellent with technologies. Adoption of new
technologies by the nation has provided with higher efficiency. Moreover, British Airways move
towards reducing carbon foot printing is exceptionally adding a plus point to the company. Besides
this, in the year 2019 the company added 4 new aircrafts Airbus A350 and it is assisting them in
providing comfortable travelling to its customers.
• Legal: United Kingdom has legal regulations for airline industry such as set amount of refunded fees
if there is a cancellation of any flight. Fixed fees structures for different employees according to the
roles and responsibilities so that a better working environment can be maintained.