Emirates Airline Sales Promotion Report for MKT 3151 Course

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This report presents a detailed sales promotion plan for Emirates, aiming to increase its market share from 21% to 23% and revenue from 6% to 8% in the next financial year, with a budget of AED 10,000,000. The target customers are working class and business class individuals aged 25-50. The campaign includes customer-oriented strategies such as discounts (15-20% for business class, 10% for economic class), coupon giveaways for food and beverages, 'buy more save more' offers (40% discount on every fourth ticket), and loyalty points (1000 points for every two tickets). Integrated marketing communication strategies include general advertising (hoardings, billboards), personal selling at airports, and digital media campaigns (social media, website, direct marketing). The report outlines budgetary considerations for promotional and communication activities, scheduling considerations, and logistical and legal aspects of the campaign. The promotional activities are scheduled from July 2018 to June 2019, with specific time frames for offers and coupon giveaways. The report concludes with logistical and legal considerations, including printing for coupons and necessary permits for billboard advertisements.
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Running head: EMIRATES SALES PROMOTION
EMIRATES SALES REPORT
Name of the Student
Author note
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1EMIRATES SALES PROMOTION
Sales report
Objectives of the sales promotional campaign
Emirates has increased its revenues in the current financial year by 6%, from the last
financial year, which makes it stand at a revenue generation of AED 98Bn (Emirates.com
2019). This has been a stunning and steady growth owing to the high prices that it charges in
exchange for the extraordinary services that the company provides to its customers. However,
the market share has been a stagnant 22% over the last few years (Abbas 2019), and this is
the reason why it has to be looked into. Therefore, the main aim of this sales promotion
objective is to increase the market share of Emirates from 21% to 23% in the next financial
year. For this purpose, it has to be noted that the consumers are targeted with appropriate
promotional strategies. This would be done through discounts, coupons giveaways, buy more
save more offers, and loyalty points.
As a result of the increased market share, the objective also includes a higher
percentage of growth in revenue generation, from 6%, to 8% in the next financial year. The
same promotional activities that have been listed out would be suitable for this purpose, since
incentives would automatically give way to the increase in sales. It has to be noted in this
regard that the objective of growing the revenue generation is a result of the objective of an
increased market share. The budget for this promotional campaign is AED 10,000,000.
Customers to be targeted
Customers to be targeted involve people both the working class and business class
people, focusing more on the business class. This section of the population have to travel
quite often, especially the business class, due to their work, or even for holidays, and
therefore, it is for this reason that these people would be interested in this promotional
campaign. These customers have to be targeted with the goal of persuading them that
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2EMIRATES SALES PROMOTION
Emirates is affordable to them. To be precise, this company has a perception in the market
that only the richest and wealthiest people could afford flying with Emirates, and therefore,
the middle class people do not even consider flying with Emirates when they do have to
travel. To increase the market share, it is important that the perception of these people is
changed through this sales promotional campaign, which would be able to help them make
sure that they can indeed travel with Emirates. This could only be done when there is enough
incentives for these customers, to lower down what they have to pay. This is achievable
through the discounts, coupons giveaways, buy more save more offers, and loyalty points.
Ideally, the customers who have to be targeted have to be in the age group of 25-50 years of
age, since it is typically them who have the affordability power.
Customer oriented sales promotions
The first thing that has to be done is to offer discounts. This has to be for a specific
period of time. This is because even if there are high sales due to the lowered prices of
tickets, it would not do much to the profits of the company. Therefore, it has to go on for a
period of not over 3 months. This in turn should be conveyed to the public that the company
is offering discounts to its ticket prices, through the social media ad campaign of this
company. The discount should ideally be 15-20% for business class and 10% for the
economic class.
Coupon giveaways are the next thing to do. One ideal and innovative thing to do in
this regard is to offer food and beverage coupons for Emirates at every airport in which it
operates. These coupons could be bought for AED 50 for a combo of a selected food and
beverage combination, and for the sale of individual food and beverage items, coupons that
sell at a rate 15% lower than the prices on the flight. Food is generally a cost that is
significant for a passenger on a lot of occasions, and saving this money would prompt a lot of
customers to try the airline.
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3EMIRATES SALES PROMOTION
There would also be buy more save more offers. In this, the airline company would be
promising a discount of 40% on every fourth ticket bought in a span of three months. This
span of time has to be properly identified. That is to say, tickets would count for only June-
August, September-November and so on. The tickets bought in September cannot be counted
with those bought in July.
Loyalty points. For the purpose of making sure that this track is maintained and
customers keep getting influenced by this promotional strategy, loyalty points also have to be
granted to them. For every two tickets, a total of 1000 loyalty points are to be accumulated,
and on the accumulation of 1000,000 loyalty points, a ticket of Emirates could be purchased
at a 90% discount. These loyalty points are to be valid only for one year.
Communication considerations
The dimensions of integrated marketing communication that have to be used in order
to communicate with the public to make sure that the sales promotional efforts are conveyed
to the public include the following.
The first thing to be done is general advertising. This could be done with the use of
hoardings and billboards to convey the desired messages to the public. This has a wide reach,
and would be therefore able to garner a lot of attention through this. This mode of
communication would be used to convey the discount offers and the loyalty bonus offers,
including the buy more save more offers.
Personal selling would also be done at airports, to sell coupons, at the airports. This
would be done in camps, or in the ticket counters themselves, since hosting camps at the
airport is not a very feasible idea.
Followed by this the use of digital media is also to be undertaken. For the purpose of a
holistic view of the entire sales promotional campaign, the main thing that has to be done is
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4EMIRATES SALES PROMOTION
to convey it to the public through the official social media handles of the company, like
Facebook, Twitter, and Instagram. This would be informative of all of the aspects of the sales
promotional campaign, and therefore, the official website of the company could also be used
accordingly.
Direct marketing efforts like emails and phone calls could be made to regular and
existing customers to inform them of the sales promotions that are taking place in the market.
These are the overall communication considerations that have to be looked into for the
success of the sales promotions.
Budgetary considerations
Promotional activity Funds allocated in AED
discount coupons 3,000,000
buy more save more
offers 1,,000,00
Loyalty points 500,000
coupon giveaways 1,000,000
Communication activity Funds allocated in AED
General advertising 2,000,000
personal selling NA
direct marketing 1,000,000
digital media 10,00,000
From the above table, it could be inferred that the budget has to take two aspects in
consideration. The first aspect is that of the activities that are to be conducted for the purpose
of the sales promotions. These include the list of activities that have to be done in order to
make sure that the sales are increased properly and the objective of the campaign is met.
The second aspect is that of the communication activities. These are the activities that
have to be conducted to make sure that the offerings of the company is properly conveyed to
the public. In this, the funds allocated have been done while keeping in mind the fee that
would be given to the personnel who would be responsible for carrying out the activities.
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5EMIRATES SALES PROMOTION
Personal selling does not have a budget allocated to it because of the fact that these would be
done by the personnel at the service and ticket counters itself.
Scheduling considerations
Activities Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
discount coupons x x x x x x x x x
buy more save more
offers x x x x x x x x x x x x
Loyalty points x x x x x x x x x x x x
coupon giveaways x x x x x x
From the above table, it could be inferred that the main thing that has to be done is to
make sure that loyalty points and buy more save more offers run all throughout the period of
the campaign, since these have time slabs. Discount offers are to be given from July of 2018
to June of 2019. Coupon giveaways are occasional and would be given during the peak
seasons of September to November, and February to April.
Logistical and legal considerations
The given sales report does not take too much of logistics, and the only logistic
concern in this case is that of printing, which would be required for the coupons. This is the
reason why a printing company has to be contacted for this purpose.
However, for billboards in general advertisements, the logistics are more. There has to
be proper canvases, and a printing company to be able to print the ads for the billboards.
As far as the legal considerations are concerned, only billboard advertisements would
be requiring it. A valid license and permit request/application form has to be filled out.
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6EMIRATES SALES PROMOTION
References
Abbas, W. (2019). Emirates fourth-busiest airline globally. [online] Khaleej Times.
Available at: https://www.khaleejtimes.com/business/aviation/emirates-fourth-busiest/-
airline-globally [Accessed 2 Aug. 2019].
Emirates.com. (2019). Emirates Group Announces 2018-19 results. [online] Available at:
https://www.emirates.com/media-centre/emirates-group-announces-2018-19-results#
[Accessed 2 Aug. 2019].
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