Marketing Analysis: Air Portugal's Customer Relationship Management

This report examines the marketing strategies employed in the aviation industry, specifically focusing on customer relationship management (CRM) using Air Portugal as a case study. It explores the changing marketing criteria within the industry and the importance of CRM in building strong customer relationships. The report delves into the customer lifecycle, highlighting steps such as customer targeting, acquisition, extension, and retention. It also analyzes strategies like online marketing, cross-selling, upselling, and loyalty programs (e.g., Miles & Victoria) used to enhance brand image and customer satisfaction. The customer lifetime value model is discussed in relation to Air Portugal's shift towards long-term customer relationships. Furthermore, the report identifies Air Portugal's differentiation advantages, including its global presence, workforce size, and e-commerce platform. The report concludes with recommendations for Air Portugal to further promote its brand and attract more customers through innovative marketing strategies and sustainable approaches, emphasizing the importance of customer loyalty and the impact of entrepreneurship on the economy.

Marketing for aviation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
RECOMMENDATION...................................................................................................................6
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
The aviation industry is changing very fast and the marketing criteria are also changing
because of the external environment. Presently there is a essay discussed on air Portugal that is a
flag carrier airline and its headquarters are present at Lisbon AIRPORT. They are serving since
the year 2005 and are operating 2500 flights to 90 destinations and 34 countries (Nykamp, 2019).
Present report deals with the concept of customer relationship management and its importance
from pint of organisation. Customer life cycle plays a very important part n management of
relationship with customers (Phelps, 2019). There are some strategies that are used for maintain
long term and sustainable customer relationship that have been discussed for developing an
understanding on how profitable relationships are build up by the aviation industry brands with
their customers.
MAIN BODY
Customer relationship management is an approach that is used by companies for the
purpose of establishment of interaction with various potential and present customers (Rahimi,
and Kozak, 2017). It basically uses data analysis related to the history of a customer to improve
overall business relationships with their customers and has a focus on customer interaction for
increasing the sales growth.
CRM is a very important from the point of aviation industry mainly because of three reasons
such as it is vital for building up and maintaining loyal and strong relationships with their
prospects and customers. Second is for generating leads and providing customers exactly what
they desire and third is proving improve customer services to their customers (Bhat, and Darzi, .,
2016).
Customer life cycle is a process that consist of several steps that has to be done so that
there is requirement to understand how to reach towards the right segment of customers by a
organisation (Nykamp, 2019). The first step in the customer life cycle is targeting of customers
in this those customers who want to travel very frequently and at same time having a preference
for a comfortable journey at reasonable prices are being targeted by Air Portugal they market
themselves by use of certain platforms such as online marketing by use of digital media
platforms etc. After this the next step in the customer life cycle is customer acquisition in which
right segment of customers are targeted where the acquisition cost has to be minimized and right

channels have to be used by a organisation so that they can approach their customers in the best
possible way. For this the technique used by Air Portugal is to minimise their cost of acquisition
by using digital media platforms and targeting the right segment along with it they make efforts
to maximise the quality of their services that are being offered to their customers so that they are
able to make a repeated purchase and this could lead to building up of a Loyal customer base
(Nyadzayo, . and Khajehzadeh, ., 2016). In the next step, there is customer extension where
there is optimisation of the quality and customer actually responds to the marketing approaches
that have been used by the organisation. In case of Air Portugal there is cross selling and up
selling the two techniques that are being used for increasing the sales of the organisation
(Soltani, and Navimipour, ., 2016). Last step of the customer life cycle is to retain the customers
for a longer duration of time for this there is focus that is done on individual needs and use of
online services for identification of such needs. In case of Air Portugal this technique is done by
the use of certain social media applications to identify the exact needs of their target segment of
customers and then customisation of services according to such identified criteria.
Customers satisfaction is the key tool for increasing the growth and development of a
particular brand of aviation industry (Lee, Lanting and Rojdamrongratana, 2017). Apart from
this there is also sue of certain techniques such as branding and identify that has been adopted by
Air Portugal for the purpose of enhancement of their brand image and increasing the satisfaction
level of their present segment of customers such as there has been unveiled of their logo in the
year 2005 so that they can coincide with the air alliance membership on the occasion of 60the
anniversary of this airline. They also change their logo that considered of a blue wing so taut
they were able to enhance their attractiveness for their present and future customer base.
There is a requirement of adoption of some customer loyalty strategies that can help in
enhancement of satisfaction level of customers. For this there are some initiates that have been
taken in the form of development of certain loyalty programmes by Air Portugal that us actually
leading to approaching of their target customer base in a more innovative and creative manner.
Also, these are some of the creative strategies that are actually helping in getting if a competitive
advantage for an organisation that is part of the aviation industry (Rodrigues, 2016).
Air Portugal has a loyalty program named as Miles & Victoria that has replaced their
earlier program named as Victoria. This is a program that awards miles based on the overall
distance travelled, class of services and the ticket fare (Bhaduri, . and Fogarty, 2016). As part of

star alliance, miles are earned from star alliance and other partners. this programme has been
divide in basic three parts such as no milageae requirements TAP Miles and Go silver and last is
TAP Miles and Go gold. This programme also has a feature in which some miles can be
converted from the award for some regular miles.
Customer lifetime value model is a prediction of the net profit that is attributed in the
entire relationship with a customer (Leszkiewicz, . and Kumar, 2017). It can also be defined as
monetary relationship with a customer and it is based in ten present values of a projected future
cash flows that is being established with the help of building up of customer relationships. In
case of Air Portugal such type of relationship has been established very well as there has been a
comeoplet shift in the focus of the organisation from the quarterly profits towards long term
growth and health of their customer relationships. They realised that it is a very important
metrics as it is used for representing the upper limit that is being spent on acquisition of new
customer base and for this there is a requirement of calculation of the payback advertising that is
being spent on the marketing mix model.
While talking about the differentiation advantage that is present for Portugal in comparison
with its other competitors it can be said that there are lot of advantage that actually help this
brand in getting a different identify for their customers (Lee, anting, . and Rojdamrongratana,
2017). Such as, their worldwide presence in so many different locations like they are operating in
34 countries and 90 destinations. So, such availability leads to higher customer reach. There is a
total work force of 7,300 employees that is supported by Air Portugal and is largest among all
their major competitors (Santouridis, . and Veraki, 2017). They have subsidiary brands such as
TAP express. The e-commerce website that is commonly named as flytap.com is very famous
and extensively used by people for making their bookings. All the new offers or new flight are
marketed on this website itself to make their target customers aware of such information.

RECOMMENDATION
It can be recommended from the above made discussion that there is a need of some more
strategies on part of Air Portugal so that they are able to promote their brand and tract more
number of customers. For this there is requirement of use of some innovative marketing
strategies that can help in establishment of a loyal base of customers.
Making their target customer aware of their some of the initiatives that have been taken.
Apart from this there has to be use of some sustainable approaches that can help in increasing the
loyalty of customers such as some attractive offers to be used to attract customers from new
segments of market such as by use of special discounts on travelling on birthday or any special
occasions. Such steps lead to attracting of customers as they find to build up a personal relation
and attachment with a brand that leads to indirect marketing and promotion of a aviation brand
that is part of the aviation industry.

CONCLUSION
It is concluded from the above report that it is important for an economy to promote the
entrepreneurship as they contribute a lot to the economy in terms of creation of various job
opportunities and in uplifting the standard of living of the people.
There has been lot of efforts that is being named by air Portugal for maintaining the loyal
base of customers and it is helping them in achievement of higher revenue and growth in the
coming tome period. It is a tool that has actually helped them in Building up of loyal customer’s
base. Apart from this the customer life cycle is a approach that helps in approaching the
customers step y step and thus helping in establishment of a permanent customer base.
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REFERENCES
Books and Journals
Lee, K.W., Lanting, M.C.L. and Rojdamrongratana, M., 2017. Managing customer life cycle
through knowledge management capability: a contextual role of information technology. Total
Quality Management & Business Excellence, 28(13-14), pp.1559-1583.
Leszkiewicz, A. and Kumar, V., 2017. Extending the Customer Lifecycle: Optimal Resource
Allocation throughout the Customer Journey. In INFORMS Marketing Science
Conference 2017.
Bhaduri, S.N. and Fogarty, D., 2016. Customer Lifecycle Value—Past, Present, and Future.
In Advanced Business Analytics (pp. 139-156). Springer, Singapore.
Rodrigues, A., 2016. How can Portugal Telecom efficiently and effectively align its SMS
marketing efforts to provide a seamless experience throughout the customer life
cycle? (Doctoral dissertation).
Lee, K.W., Lanting, M.C.L. and Rojdamrongratana, M., 2017. Managing customer life cycle
through knowledge management capability: a contextual role of information
technology. Total Quality Management & Business Excellence, 28(13-14), pp.1559-1583.
Nykamp, M., 2019. The Customer Differential The Complete Guide to Implementing Customer
Relationship Management. American Management Association.
Nyadzayo, M.W. and Khajehzadeh, S., 2016. The antecedents of customer loyalty: A moderated
mediation model of customer relationship management quality and brand image. Journal
of Retailing and Consumer Services, 30, pp.262-270.
Phelps, G.R., 2019. Customer relationship management.
Rahimi, R. and Kozak, M., 2017. Impact of customer relationship management on customer
satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism
Marketing, 34(1), pp.40-51.
Bhat, S.A. and Darzi, M.A., 2016. Customer relationship management. International Journal of
Bank Marketing.
Soltani, Z. and Navimipour, N.J., 2016. Customer relationship management mechanisms: A
systematic review of the state of the art literature and recommendations for future
research. Computers in Human Behavior, 61, pp.667-688.
Santouridis, I. and Veraki, A., 2017. Customer relationship management and customer
satisfaction: the mediating role of relationship quality. Total Quality Management &
Business Excellence, 28(9-10), pp.1122-1133.
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