An Analysis of Marketing Strategies for Cathay Pacific Airways Ltd

This report provides a comprehensive analysis of the marketing strategies employed by Cathay Pacific Airways Limited (CPA Ltd), focusing on the reasons behind recent financial losses. The report begins with an executive summary outlining the key issues and findings, followed by an introduction providing background information on CPA Ltd, problem statements, and the scope of the study. The research methodology section details the use of both primary and secondary data, including surveys of customers and analysis of financial reports. The core of the report examines CPA Ltd's marketing strategies, including the marketing mix (product, price, place, and promotion), major competition, and a SWOT analysis. Financial analysis is presented to understand the company's performance, followed by data analysis and findings from customer surveys. The results reveal customer satisfaction levels and areas needing improvement. Finally, the report concludes with recommendations for enhancing CPA Ltd's marketing strategies and improving its financial position. The research utilizes both primary and secondary data to assess the challenges and opportunities faced by the airline, providing valuable insights for strategic decision-making.

Marketing Strategies

EXECUTIVE SUMMARY
In the present era, firm lays high level of emphasis on developing competent marketing
strategies that aid in the growth and development of firm. By doing analysis of external
environment firm can frame suitable policies that help in achieving goals. For this project report
Cathy Pacific Airbus (CPA) limited has been selected which is operating in the 180 locations of
the world. The company has great workforce in worldwide around 33,800 in which more than
26000 are employed in Hong Kong. In this, high level of emphasis is placed on assessing the
reasons due to which CPA Ltd incurred loss. To resolve such issue data has been gathered by the
researcher from both primary and secondary methods. It can be summarized from primary data
evaluation that customers are not highly loyal towards the services of CPA ltd. Further, it can be
summarized that decline in the level of customer satisfaction is one of the main causes due to
which sales and profitability of the firm. It can be presented from secondary data evaluation that
financial position and performance of CPA Ltd is good over HK express. However, it can be
seen in the report that in 2016 due to low sales and higher expenses business unit suffered loss.
Thus, for making improvement in the current position firm should undertake budgetary control
tools which in turn helps in avoiding or reducing the level of such issue.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Background of Cathay Pacific Airways Limited...................................................................5
1.2 Statements of problems..........................................................................................................5
1.3 Purpose of this organization...................................................................................................6
1.4 Contribution...........................................................................................................................6
1.5 Scope......................................................................................................................................7
1.6 Limitations ............................................................................................................................7
CHAPTER 2: RESEARCH METHODOLOGY ............................................................................7
2.1 Primary data ..........................................................................................................................8
2.2 Secondary data.......................................................................................................................8
2.3 Data analysis.........................................................................................................................8
CHAPTER: 3 MARKETING STRATEGIES FOR CATHAY PACIFIC AIRWAYS LIMITED. 9
3.1 Marketing description............................................................................................................9
3.2 Marketing Mix.....................................................................................................................10
3.2.1 Product..............................................................................................................................10
3.2.2 Price..................................................................................................................................10
3.2.3 Place..................................................................................................................................10
3.2.4 Promotion..........................................................................................................................11
CHAPTER: 4 MAJOR COMPETITION.......................................................................................11
4.1 Main competition.................................................................................................................11
4.2 Successful factors.................................................................................................................11
4.3 Impact of Cathay Pacific Airways Limited........................................................................12
CHAPTER 5: MARKETING ANALYSIS OF CPA Ltd..............................................................12

SWOT analysis of Cathay Pacific Airways Limited.................................................................12
CHAPTER 6: FINANCIAL ANALYSIS .....................................................................................13
CHAPTER 7: DATA ANALYSIS AND FINDINGS ..................................................................18
7.1 Results .................................................................................................................................18
Theme 1: Customers often travel through the airlines of CPA Ltd ..........................................18
Theme 2: Respondents are neutrally satisfied from the services offered by CPA ltd...............18
Theme 3: Services provided by CPA Ltd gives you high value of money to the middle extent
....................................................................................................................................................18
Theme 4: CPA Ltd offers quality services to the customers on average price level ................18
Theme 5: Improvement is required in the quality of services .................................................19
7.2 Discussion ...........................................................................................................................19
CHAPTER 8: CONCLUSION AND RECOMMENDATIONS...................................................20
8.1 Conclusion ..........................................................................................................................20
8.2 Recommendations ...............................................................................................................20
REFERENCES .............................................................................................................................21
APPENDIX ...................................................................................................................................23

CHAPTER 1: INTRODUCTION
1.1 Background of Cathay Pacific Airways Limited
Airline services facilitated by Cathy Pacific limited since 1946 from Hong Kong.
Approximately 70 years of its successful running year’s organization has developed or expanded
its business criteria in various fields. This firm has two subsidiaries companies which deal in
passenger services and cargo services at around 180 locations in the world. This company is
consisting of various Airbus and air craft services. The motive is to provide optimum services
than other rivalry organizations (Cathay Pacific, 2017). The entity has developed and acquired
airlines services of the rivalry firms like Hong Kong Airways etc. which are provided it the
initial growth in collection of large digit turnover. As per the current scenario on 31st December
2016 the airlines is function in 202 air-crafts, the main aim of this firm is to develop Hong Kong
as the largest aviation base in world.
The company has great workforce in worldwide around 33,800 in which more than 26000
are employed in Hong Kong. This has great contribution in developing the economy of country
as providing employment opportunities such as skilled and experienced pilot, crew members and
officers who are regulating the air-craft traffics. As per growth of Cathay Pacific Airways
Limited it has favorable share values in market and various big shareholders have made
investments in it which are Air China as well as Swire Pacific limited.
1.2 Statements of problems
Cathay Pacific Airways Limited has suffered from losses and done to have enough fund
to operate the operational functions of firm. Organization had experienced the problems in last 8
years regarding employee relationship issues, financial draw backs and various internal problems
that is affecting revenue generation of this entity. Their share values were also being reducing
and various problems has been faced by them related with inappropriate funds for operating
airlines services. In year 2001 there was employee disputes held in Hong Kong Aircrew as they
have lunched the roster strategy at work place like scheduling the workforce timings and duties.
Plans were building as to make the swiftness in the process of performance made by employees
but it was unfavorable for pilots. It also disrupts the scheduling of flights and time of their arrival
and departure is completely become out of the control situation. They have to face problems
regarding cancellation of flights, non proper scheduling as the pilots has been suffered due to

sickness. Due these problems there will be more disputes arises and then company took serious
action and fired more than 50 pilots in which half of them are captains as well as more than 10
officers of the HKAOA has discharged from their duties.
1.3 Purpose of this organization
Objective of this organization is about developing Hong Kong as world's largest aircraft
aviation base. These things going to be made as per the mangers of this firm make efforts in
developing the favorable marketing strategies such as employee retention, scheduling their jobs,
assigning duties as per their skills and talents, proper training to them. There will be requirement
s of various training process such as class room teaching, simulation program, on the ground
means practical knowledge that will help in building confidence in them as they can make their
valuable efforts in the operations of the organization.
Organization has developed first mobile boarding pass application machines. Which
helps consumers or passengers in obtaining the boarding passes without standing in queue for log
passage of time? It was convenient for their staff too as they will have enough time to go for
other dealings regarded with solving the passenger problems. Managers of this firm are also
planning to improve the brand image in market as to have large numbers of buyers as well as
shareholders. They have started marketing functioning of this entity over social media sites such
as Facebook, twitter, YouTube, Flicker and developed blogging which is appreciated by
consumers. These techniques help in generating attention of stakeholders and they will make
their valuable investments as to rise the funds of the organization.
1.4 Contribution
Organization has made its contribution in various subsidiary companies such as acquiring
them, providing capital investments that will help in developing the operational activities of such
firms. They also helped in improving the economic conditions and rise in the living standard of
people. It has facilitates the employment opportunities in Hong Kong. More than 23000 workers
are working in the firm are from Hong Kong. Entity has workforce around 34000 as per year
2016. Firm has acquired subsidiary companies which are Air Hong Kong and Cathay Dragon.
They have created the good brand image in market and have acquired much Airbus, aircraft’s
that are facilitating the best transportation services to consumers throughout world. They are
providing cargo services in more than 44 countries at 180 several locations. Contribution of this

organization can be said better than various rivalry companies, with the help of its subsidiary
firms. As per the records of 2010 year, working with Dragon air they have carried more than 27
million passengers as well as 1.8 million tons of cargo were delivered.
1.5 Scope
The report will be considered on the basis of 2 years data base which describes that the
organization is running into loss and there is need for changes into operational functions. In 2016
there has been loss of HK$575 million that as compared with the gains of HK$ 6000 million in
2015. This has affected the losses per share which tends at 14.6% as compare with previous
year's rates of 152.5%. In this, scope of the current report and its finding is too wide which in
turn provides higher management of CPA ltd with the suitable framework for decision making
and makes improvement in the current financial position of firm.
1.6 Limitations
In order to investigate the issue financial data of CPA ltd and HK express pertaining to
the year 2015 & 2016 has been gathered. Hence, due to time limitation only 2 years data has
been considered for the purpose of evaluation. If researcher will consider the data of more years
then there would be wide framework for decision making. However, to reduce the effect of such
limitation ratio analysis has been conducted to identify over the years performance trend and
position in against to the competitors.
CHAPTER 2: RESEARCH METHODOLOGY
In order to carry our study in a highly structured way researcher is required to assess
suitable methods or techniques pertaining to the concerned study. Moreover, methodology acts
as a pathway and provides deeper insight to the researcher about the manner in which study
needs to be conducted. In other words, research methodology may be served as guideline which
assists in doing whole study in an effectual way (Sorescu, Warren and Ertekin, 2017). In the
present study, to assess the reasons the reasons due to which loss incurred CPA Ltd quantitative
research type has been selected. Further, for conducting study in the right direction researcher is
required to gather data set from appropriate sources. In this regard, by using the varied
techniques primary and secondary data has been gathered by the researcher.

2.1 Primary data
Primary data implies for the one that researcher gathers for the first time to discover
specific information and resolving the concerned issues. There are several ways through which
one can gather primary data such as survey, focus group, observation and interview. All such
tools are highly effectual which in turn provides assistance to the researcher in collecting specific
information as per the issue which is going to be investigated. In this, to assess the reasons
behind loss and decreasing sales revenue survey has been conducted by the researcher. For the
purpose of survey 30 customers of CPA has been selected through the means of simple random
sampling technique. By using questionnaire researcher has asked questions from the customers
regarding their satisfaction level, loyalty aspects etc. Hence, by sending questionnaire, including
both open and close ended questions, on the mail-id of customer’s primary data has been
gathered by the researcher.
2.2 Secondary data
Data that has already been gathered, published and analyzed by other scholars is
considered as secondary. Sources of secondary data contain journals, books, articles, annual
reports etc. In this, to resolve the issue in relation to identifying the causes of loss researcher has
used the annual reports of CPA Ltd. By accessing the company’s annual report, available on
internet, researcher has gathered information about the profitability, liquidity, solvency and
efficiency aspect of the firm. Besides this, for assessing the financial position and performance
of CPA Ltd in against to the rival firm income statement and balance sheet of Hong Kong
Express has also been evaluated by the scholar.
2.3 Data analysis
In order to analyze gathered data set such as primary and secondary varied techniques
have been employed by an investigator. Hence, thematic analysis has been conducted by the
researcher to present suitable solution from primary data set. In addition to this, ratio analysis has
been conducted by the researcher for evaluating the reasons behind the occurrence of loss.

CHAPTER: 3 MARKETING STRATEGIES FOR CATHAY PACIFIC
AIRWAYS LIMITED
3.1 Marketing description
Strategies are to be made as to make a good market share and generate favourable income
from delivering good services to consumers. Cathay Pacific Airways limited must use various
techniques as to improve the marketing performances. Organisation need to follow several
marketing strategies that will help in generating the good response from the market as well as
fruitful in overcoming the losses which as been suffered by them.
Targeting: For the improvement in organisational revenue there is need to develop the
marketing tactics. Cathay Pacific Airways Limited need to target the market like they need to
develop the services which will be fruitful for every category of consumers. They need to modify
plans for its subsidiary aircraft companies, cargo services as well as provoke the mailing
systems.
Segmentation: There must be use of these marketing strategies as managers of this
organization need to segment market as per economic standard of consumers and ages of them.
Services provided into business class must describe the luxuriousness. Food quality and other
services must be luxury because the business class is being afforded by the individuals by paying
more than the other passengers in the flight. Economy class in a craft need to be improved there
should be better services in the field of serving the passengers a quality service. A part from crew
services, cargo facilities of Cathay Pacific Airways Limited need to be developed. There must be
proper labeling over is percale that is going to be delivered. The details must be mentioned over
each article relating with the name of owner, address and details of goods.
Positioning: To acquire a good brand image and create a non replaceable position,
organization need to improve quality of services. They must keep thought in mind regarding
giving appropriate satisfaction to consumers. They need to develop various consumer supportive
services that will help in creating the image in market. There are various competitive firms who
are offering same services as well as challenging the organization people belongs to different
nations as a passenger of the craft there must be recruitment of the talented staff who can easily
understands their problems and give theme effective solutions. These techniques will help in

creating the brand image in various countries and consumers will prefer to travel with this
airlines.
3.2 Marketing Mix
3.2.1 Product
Cathay Pacific Airways Limited is awarding various facilities to consumers such as air
craft services, cargo; mailing etc. the motive of the organization is to make the great position the
market. As per the losses faced by the organization in past years that need to be overcome. There
must be implementation of innovative ideas such as firm must provide mobile boarding pass
machines that will help the passengers in collecting their boarding passes with the help of these
devices. There will be promptness in the work as consumers use this technology. Further the
need to focus over giving the best cargo services throughout the world (Datta, Ailawadi and van
Heerde, 2017). Organization need to develop online services through their site such as booking
the tickets and giving the tracking facilities to the individuals who has made send their percales
to deliver at various locations.
3.2.2 Price
To over with losses organization needs to focus over their pricing techniques. There must
be affordable rates for each categories in crew such as economy class, business class etc.
business class is said to be known as high level category. There are mainly high profile people
used to travel in this category. They pays more than other passengers in the craft as have the
luxurious experience of travelling. This thing must be considered by Cathay Pacific Airways
Limited regarding proper satisfaction to such consumers. In consideration with high class they
need to balance the economy class such there must be fruitful services provided to them. Prices
for each services must be appropriate as there will be favorable earning with consideration of
consumers satisfaction.
3.2.3 Place
Cathay Pacific Airways Limited has many airbase in 44 countries in world. There need
to be develop strategies as to invite large numbers of consumers to use their services. They need
to recruit the local individuals from various locations so that will be easy or convenient way for
consumers in gaining the appropriate information’s regarding services provided by the

organization. To overcome with the financial draw backs they need to set pricing scale at various
places as according to the economic standard of their citizens.
3.2.4 Promotion
Promotion must be done with the help of various television advertisements, online
surveys on social media sites such as Facebook, twitter, flicker which helps in creating the
identity of position in such markets. They must use marketing tool such as questionnaire which
will help in gaining adequate data regarding consumer needs and wants of the consumers (Patil
and Bach, 2017). They need to make deals with several travel agencies and grant free holiday
package to consumers. It will be helpful in gaining the good consumers response and create the
brand image in their mind.
CHAPTER: 4 MAJOR COMPETITION
4.1 Main competition
Cathay Pacific Airways Limited can be challenged by various airline firms in the market.
They are giving tough competition in field of providing the best consumers services at lower
rates. The main competitors of this organization are Singapore Airlines Limited, Air China, Air
Asia and Kalitta Air. These firms are facilitating consumers in good quality of services also in
the field of cargo services. These can be tough competition to them as they will not improve or
make innovative changed in the prices or promotional techniques. They need to make several
changes such as recruiting the qualified or experience workforce. Need to focus over employing
maximum numbers of local or domestic people that will help in giving the appropriate
information’s to the passengers. It will be helpful in making the favorable promotion of such
services facilitate by the airline. They need to make changes in dealings with buyers such as
online consumer care services; here the passenger can collect necessary informations regarding
flight schedule, time duration and prices of tickets as well as other service of this air craft firm.
4.2 Successful factors
For giving the tough challenge to competitors, company need to develop various
techniques in which they will perform better than the rivalry firms. Cathay Pacific Airways
Limited must develop good strength in market by accessing consumer needs as well as services
provided by other firms. They need to make planning in advancing services and facilitate the
quality service at the most convenient prices. They must seek the weakness of the other

organizations and expand the criteria of their services (David, David and David, 2017). There
must be adoption of various promotional techniques which will be fruitful in developing large
numbers of consumers.
4.3 Impact of Cathay Pacific Airways Limited
Due to competitive environment in airline industries problems has been faced by Cathay
Pacific Airways Limited. There has been reduction in the profit earning of the company. Due to
competition in air services as well as cargo services provided by other firms has created the big
loss for this industry. Many substitute service agencies affects in losing maximum numbers of
consumers. There has been reduction in shares value and the investors of this business as peoples
do not find it is fruitful in investing their valuable funds. It has lower down the image of this
organization as well as poor marketing techniques cannot generate the identity of this firm in the
market.
CHAPTER 5: MARKETING ANALYSIS OF CPA Ltd
SWOT analysis of Cathay Pacific Airways Limited
In order to evaluate internal and external business aspects of Cathay Pacific Airways
Limited SWOT analysis is conducted. It is highly effectual tool which in turn provides deeper
insight about the strengths and weaknesses of an organization. In addition to this, it also
highlights opportunities and threats that are associated with the firm. Thus, by using such tool
firm can enhance its efficiency and effectiveness by converting weaknesses into strengths. Along
with this, SWOT analysis also indicates how business unit can grab opportunities by using
strengths (Njoh, 2017). Further, such analysis also assists firm in developing highly suitable
framework through which impact of threat can be reduced. By considering all such aspects
SWOT analysis of Cathay Pacific Airways Limited is performed such as follows:
 Strengths: Company’s strength includes presence in the airline market or sector from
long time period. Along with this, high and satisfied customer base is another main
strength of the firm as it carries approximately 30 million passengers in a year. Further,
number of aircraft fleet size accounts for 140 and it has covered 110 destinations in over
35 countries. This aspect clearly shows that firm captured global market to a great extent.