HI5004 Marketing Management: Etihad Airways Strategic Marketing Plan

This report provides a detailed analysis of Etihad Airways' marketing strategy, examining its market orientation, 5C's (Company, Customers, Collaborators, Competitors, Context), market information collection methods, segmentation, targeting, positioning strategies, and the 4P's of marketing (Product, Price, Place, Promotion). The report highlights Etihad's strengths, such as its financial resources and extensive fleet, as well as weaknesses in alliance strategy. It also identifies opportunities for growth in emerging markets and threats from international court decisions and economic factors. The analysis includes an overview of Etihad's customer base, collaborative partnerships, and key competitors, providing a comprehensive understanding of the airline's marketing environment and strategic approach. The report concludes with insights into how Etihad can leverage its brand and resources to maintain a competitive edge in the global airline industry. Desklib offers a platform to access similar solved assignments and past papers for students.

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MARKETING AND MANAGEMENT
Name of student
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Executive summary
Our group settled on Etihad Airways an airline owned by the United Arab Emirates. Etihad
Airways main operations include the transportation of passengers and cargo on air (Al Ali,
2014). Additionally, Etihad Airways deals with holiday planning and international tourism,
however, transportation stands out as the main activity with the airline having successfully
covered most countries on the globe. Etihad operates in the air transport industry, which is very
competitive especially with more players entering the market over the years (Al Dalayeen,
2017). Some of the global airlines that pose competition to Etihad airways include,
1. Air Berlin
2. Jat Airways
3. Virgin Australia
4. Air Seychelles
The report explores online and offline sources to find answers to various marketing topics that
affect Etihad’s operations. The research considers more than 100 journal articles that undergo
filtration to get the best information. The marketing topics include,
1. Market orientation
2. 5C’s of marketing
3. Collecting of market information
4. Segmentation, targeting and positioning
5. 4P’s of marketing
The research finds information appropriate for use by the industry and academicians.

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Table of Contents
Executive summary......................................................................................................................................2
Introduction.................................................................................................................................................5
Mission....................................................................................................................................................5
Vision.......................................................................................................................................................6
Market orientation...................................................................................................................................6
Role of the brand in the market strategy..................................................................................................7
5C’s analysis...............................................................................................................................................7
Company.................................................................................................................................................7
Strengths..............................................................................................................................................7
Weaknesses..........................................................................................................................................8
Opportunities.......................................................................................................................................8
Threats.................................................................................................................................................9
Customers............................................................................................................................................9
Collaborators....................................................................................................................................10
Competitors.......................................................................................................................................10
Context..................................................................................................................................................11
Economic...........................................................................................................................................11
Socio-cultural....................................................................................................................................12
Technological....................................................................................................................................12
Collection of market information...............................................................................................................13
Surveys..................................................................................................................................................13
Market observation and research..........................................................................................................13
Marketing strategy....................................................................................................................................14
Market segment.....................................................................................................................................14
Target market........................................................................................................................................15
Positioning statement............................................................................................................................15
Etihad 4P’s of marketing...........................................................................................................................16
Price......................................................................................................................................................16
Promotion..............................................................................................................................................16
Product..................................................................................................................................................17
Place......................................................................................................................................................17
Conclusion.................................................................................................................................................17

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Bibliography..............................................................................................................................................19

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Introduction
Etihad Airways is currently ranked among the top three airlines in the Middle East with Qatar
and Emirates airlines leading the way. Etihad airlines became the flagship airlines for the United
Arab Emirates in 2003 a move that has resulted in rapid success over the years. The airline
operates more than a thousand flights per week to 86 different destinations across the globe.
The purpose of the report is to the market plan adopted by the airlines to ensure success.
Therefore, the report checks into topics such as,
 Market orientation
 5C’s of marketing
 Collecting of market information
 Segmentation, targeting and positioning
 4P’s of marketing
The group engaged in extensive research to identify how Etihad airlines approach different
marketing topics. The results are important for the industry and academic researchers.
Mission
The mission statement states that ‘as the national airline of UAE, we seek to reflect the best of
Arabian hospitality as well as to improve the prestige of Abu Dhabi as a centre of hospitality
between the east and west (Balakrishnan, 2011).’ The mission aligns with the airline’s goal of
becoming an internationally recognized airline by challenging and causing a radical change to
hospitality in the airline industry. The airline intends to ensure that customers receive a relaxing
experience with high safety standards by applying internationally accepted quality procedures.

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Vision
The vision statement embraced by Etihad airlines states, ‘our goal is to be a truly 21st century,
global airline, challenging and changing the established conventions of airline hospitality (Jory,
2019).’ The airline has put up systems in place to ensure the achievement of the vision statement.
The systems include such as offering a friendly environment that meets global standards and
ensuring quality in the technical aspects of customer service.
Market orientation
Etihad Airways uses the loyalty program to deliver products and services to the customers
(Ahmad, 2015). The loyalty program includes giving a unique name to the various travel classes
available for selection by customers. The names given to the classes reflect the level of prestige,
cost and customer experience. For example, the airline has the most premier travel as the
Diamond first class, which is expensive and offers a high-quality experience to the customers.
Therefore, Etihad used the diamond theme to communicate high-class services to the
organization and customers. The pearl class follows with a lower price and service quality than
diamond but still has a favourable amount of beauty for customers to admire (Karam, 2018). The
last is coral, which represents the economy class, travel passengers. Naming the economic class
as coral is a smart move because corals are living things that people do not buy and sell but have
an eye-catching beauty. The message sent by the coral theme is that even if flying with the
economy class, there is beauty in the travel.
Additionally, Etihad offers reward programs to the customers in two categories that include
Etihad guest and Etihad business concept (Dutt, 2015). The Etihad guest concept rewards
customers and has succeeded in flexibility and absence of restrictions. The benefits include.
 Instant rewards

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 Full-time service delivery
 Wide range of choices to select
 Cash and miles rewards
Etihad business concept has the following advantages.
 Online portal for claiming miles with simplicity
 Shopping miles
 Upgrade to a higher class cabin
 Transfer of mileage to other persons
Role of the brand in the market strategy
The brand Etihad airways plays a great role in the success of the developed marketing strategies
(Beck, 2015). The brand has increased efficiency and effectiveness in marketing
communications since Etihad is a globally recognized name. The brand has a top position in the
airline industry, which results in a high-usage compared to competitor airlines (Andreasen,
2012). The Etihad brand comes with other services and loyalty programs for the customers,
which has played a role in increasing customer loyalty. The role of the Etihad brand is to
increase the airline's visibility in the market.
5C’s analysis
Company
Strengths
Etihad airlines various advantages, which other airlines cannot match thus resulting in market
power (Chabowski, 2017). The airline enjoys immense financial resources with a profit margin
that increases annually. The profit increase represents high economic power to do business even
with the high competition in the industry. The financial power has enabled the company to

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exploit opportunities in the external environment to generate additional income (Homburg,
2012). Additionally, the airline has managed to use financial power to assemble the second
largest airplane fleet in the United Arab Emirates. The large fleet avails adequate capacity to
serve customers in various parts of the globe. On the other hand, the airline has bought shares in
rival airlines, which gives an advantage in controlling the competition (Katsikeas, 2014).
Weaknesses
Despite experiencing great growth over the years in terms of customers, profits and fleets of
airplanes, Etihad Airways has shown a weakness in strategy development (Jaafar, 2012). The
airline has failed to adopt the strategy of forming alliances that have worked successfully for
other airlines in terms of increasing capacity. Etihad has instead focused on buying shares from
other airlines with the aim of increasing the transport network (Karatepe, 2011). However, some
of the purchases have proved troublesome and unsuccessful with some of the airlines performing
poorly in the market. Additionally, the purchase of shares from other companies have resulted in
several legal procedures that have hindered the successful implementation of the strategy.
Opportunities
Etihad airlines have the opportunity of increasing the market share by venturing into new
emerging markets across the globe (Kekec, 2018). The current steady growth experienced by the
airlines shows that the company has the capacity to invest in new markets and have adequate
resources to operate efficiently and maintain a competitive advantage. Additionally, the airline
should investigate the available options available to overcome the effects of Brexit. The airline
has the opportunity to develop a subsidiary company that will secure a legal position in the
European markets.

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Threats
Etihad airlines suffer the threat of international courts making decisions that affect the current
move of buying shares from other industry players. The courts could rule against Etihad airline's
share agreement and negatively impact the achievement of the objective of expanding the route
networks. Additionally, the legal proceedings have resulted in uncertainty that has affected the
freedom of continuing with the implementation of the network expansion strategy (Samiee,
2015).
Customers
Etihad airline's customers include international business people and tourists. The two groups
portray different characteristics in terms of tastes and preferences. Most of the business travellers
fall under the age category of 30-50 years while tourists range from 20-30 years and 51-70 years.
The age differences among tourist passengers do not create a variation in terms of cabin taste and
preferences (Merkert, 2013). The tourist passengers have characteristics that include,
1. Prefer the diamond first class
2. Make many stopovers
3. Book airplanes for a long period before the date of flight
4. Travel to long destinations
5. Travel in groups
On the other hand, the business passengers have characteristics that include,
1. Mostly prefer an economy class with few using diamond and pearl class
2. Travel to short destinations
3. Travel alone
4. Make emergency flight bookings

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Collaborators
Etihad Airways have collaborated with various partners to form strategic partnerships for
business success (Al Ali, 2014). The strategic alliances include such an agreement with IBM to
provide technology services to the airlines and partners. The computer services include the
supply of cloud technology services that will increase the ability to serve customers.
Additionally, the agreement includes the development of a cloud data centre in Abu Dhabi that
will become the most sophisticated technology hub in the region (Morandi, 2014).
Furthermore, Etihad Airways has strategic partnerships with airplane manufacturing companies
such as Boeing, IAMA, Envoy aerospace and Etihad Airways engineering (Balakrishnan, 2011).
Etihad Airways has maintained adequate communications and integration with the suppliers to
ensure supply of planes that meet necessary quality standards (Schilirò, 2015). The good
relationship with suppliers enables the company to acquire new technology first before
competitors.
Competitors
Etihad airlines has many competitors who cause a reduction in the market share enjoyed in the
global markets (Zeng, 2013). Some of the competitors include,
1. Qatar Airways
2. Fly Dubai
3. Malaysia Airlines
4. Turkish Airlines
5. Cathay Pacific
6. Saudi Arabian Airlines

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The financial resources enjoyed by the competitors pose a great challenge to Etihad airlines
resulting in high expenditure to remain at the top. Etihad is forced to embrace new technology,
buy new planes and increase route networks to cover a wide market share and beat the
competition.
Context
Political
Etihad airlines is the only Abu Dhabi airline that operates in international routes, which enhances
exposure to political developments around the world (Al Dalayeen, 2017). The airlines suffered
from the decision by the USA president Trump to limit travel for six Muslims countries with the
claim of an increase in the threat of terror. The political decision has hindered the growth of
Etihad airlines into the American market due to a few passengers travelling the country from
arable regions.
Additionally, a reduction in the frequency of flights to the US and discontinuation of certain
European routes have affected operations to a great extent (Balakrishnan, 2011). Etihad airlines
has since experienced a reduction in the number of daily and weekly flights. Furthermore, a
strong move to restrict Middle Eastern flights to the American and European markets has caused
challenges in operations.
Economic
International airlines suffer the consequences of global economic activities and trends (Jory,
2019). Any developments in the macro-environment results in a change in the demand for air
travel. For example, the financial crisis that occurred in 2007 and 2008 affected air travel,
however, the global economy has recovered and new economies have emerged (Fiebelkorn,

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2017). The new economies of Asia and Africa pose an economic threat due to an unpredictable
nature, which hinders Etihad from investing much into the routes.
On the other hand, the price of crude oil has reduced leading to other small airlines setting lower
prices for flights (Karam, 2018). Furthermore, small airlines have managed to reduce operational
costs to the level of competing for customers with airline industry giants like Etihad. Therefore,
economic trends have resulted in reduced market power.
Socio-cultural
The economic recovery from the recess experienced in 2007 to 2008 resulted in an increase in
the number of middle-class citizens and a general rise in population (Karam, 2018). The result of
the increase in additional demand for air travel across the globe since more people can afford
plane tickets to various destinations. Therefore, Etihad airlines has the opportunity to increase
the number of flights to various destinations across the globe.
On the other hand, the number of generation Y travellers has increased and have a higher need to
travel (O’Connell, 2018). The generation Y travellers increase the number of customers in the
market for Etihad to exploit. Therefore, Etihad should develop tailor-made services to suit the
tastes and preferences of Generation Y travellers.
Technological
The air transport industry has experienced extensive improvement in regards to technology. The
main changes include communications with customers, discovering patterns of business,
development of services and delivery (Milisavljevic, 2013). An increased number of customers
have adopted online platforms to book and communicate with airline companies. Therefore,
Etihad airlines has the responsibility to move to social media and other online platforms to
increase efficiency in communicating with the customers.

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Collection of market information
Surveys
Etihad Airways collects market information through surveys tailored in the form of
straightforward questionnaires (Zamberi, 2016). The surveys aim at a sample of the market since
surveying the whole market requires much resources and expenditure. The airline performs the
surveys in various forms such as in-person surveys that include conducting surveys to people in
airports and popular tourist destinations. The Etihad marketing representatives ask direct
questions to the customers about the products and services offered. In turn, the sales persons get
immediate feedback about the attitude and level of product knowledge in the market. The in-
person surveys have played a big role in enabling Etihad airlines to tailor services to the
customer tastes and preferences.
Additionally, Etihad Airways conducts online surveys in the form of Google surveys (Zamberi,
2016). The Google surveys enable the airline to collect wide information due to the wide usage.
Anyone using a smartphone or a laptop can respond to the survey questions with ease, which
helps collect much-needed information about products in the market and customer attitudes.
Market observation and research
Market observation and research play a huge role in understanding market behaviour and trends
(Al Dalayeen, 2017). The activities undertaken by Etihad airlines under the category includes
data collection, analysis and interpretation. The airline employs the help of experts to collect raw
market information and analyse to give a conclusive report that states the real situation in the
market. The data collected in the process includes competitor performance in various areas such
as the introduction of new products, customer attitude towards the products and new strategies to

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compete with Etihad airlines (Balakrishnan, 2011). The knowledge about competitor activities
assists in setting up counter-strategies to maintain a competitive position in the market.
The market observation and research activities enable Etihad airlines to collect information about
the 5C’s of marketing since the data collected covers customer attitudes, competitor actions, the
context of business and partner activities (Jory, 2019). Therefore, Etihad airways concentrates on
using the market observation and research due to the collection of accurate data. Additionally,
the collected data gives accurate information to the users, which helps in providing a better
response to challenges.
Marketing strategy
Market segment
Etihad airlines targets business and leisure travellers with high price sensitivity (Jory, 2019).
Etihad business operations and plans have developed methods of offering specific need to the
two categories. The ability to recognize that the two groups have different characteristics has
enabled Etihad to develop high-quality products combinations to satisfy each (O’Connell, 2018).
Etihad airlines use psychographic segmentation to divide the market customers and offer group
specific services and products. The airlines engage in identifying the social levels, living
standards, interests, attitudes and opinions of the customers in the segment.
The two customer groups differ in terms of preferences and demands for services. The business
travellers have a high taste for exotic products, which results in Etihad offering premium services
such as exotic drinks, superior seat comfort and a variety of cuisines (Milisavljevic, 2013). On
the other hand, leisure travellers get services only according to what is termed good in the
aviation industry. The airline does not go a step further to offer premium services without
additional cost.

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Target market
Etihad airlines target corporate and upper/middle-class customers (Zamberi, 2016). The target
group has a need to travel either for business purposes or leisure. Most persons within the target
groups have adequate income to pay flight tickets from personal accounts or company
sponsorships. Therefore, Etihad targets the groups since data from the market reveals that
corporates and upper/middle-income earners form a large percent of airplane passengers (Jory,
2019). Therefore, Etihad airlines has developed a value proposition for the group in the form of
loyalty programs. The loyalty products occur in two categories that include.
1. Etihad guest- enables customers to access services without restrictions while offering
cash rewards for miles travelled.
2. Etihad business concept- enables customers to win shopping points for miles travelled
Positioning statement
Etihad Airways has a positioning statement that states that ‘feeling the luxury.’
The positioning statement means that Etihad airlines invests great resources into ensuring that
customers get the best services (Balakrishnan, 2011). Therefore, Etihad airlines has developed
different service combinations to serve the customer appropriately. The various service
combinations include,
 Diamond class
 Pearl class
 Coral class
The various flight classes have different prices with the diamond class as the most expensive
followed by pearl class and finally coral class (Fiebelkorn, 2017). Etihad Airways has divided
the flights into classes to ensure that the customers access the best possible service according to
financial power. The diamond class experience five-star services with exotic drinks and

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comfortable seats. The diamond class is available for wealthy customers who can pay premium
prices for tickets. On the other hand, pearl and coral class are available for middle-class
customers who cannot afford to pay premium prices. Therefore, the flight company has managed
to accommodate all.
Etihad 4P’s of marketing
Price
Etihad airlines offers product packages with different prices depending on the services offered.
The packages are divided into diamond, pearl and coral (Al Ali, 2014). The customers have the
chance to select the products according to affordability. Etihad airlines has ensured that all
customers can fly to destinations at low costs by choosing the coral and pearl class. Additionally,
the flight company offers discounts for flights to major tourist attraction and business
destinations to allow customers to access flights even with low financial power.
Promotion
Etihad airlines markets services to customers through various media (Balakrishnan, 2011). The
currently adopted advertisement method is online marketing through websites and social media
handles. Etihad has strongly adopted google ads that appear in major sites such as YouTube,
Facebook, Twitter and Instagram. The online ads use attractive graphics in videos and clips that
give details of the services and prices (Jory, 2019). Google ads enable Etihad to reach a wide
market share since a large number of people access the internet across the world.
Furthermore, Etihad airlines has sponsored sporting activities such as the English premier league
(Fiebelkorn, 2017). The airlines struck a sponsorship deal with Manchester City Football Club
that results in the naming the stadium after Etihad. The players also play in T-shirts branded with
the Etihad logo.

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Product
Etihad airlines deliver products in terms of flights to other countries. The airline has increased
services in addition to flying passengers to include tourist management, airplane manufacture
and repair and offering air and travel courses. However, the primary service offered is flights to
various global destinations. The company has improved the quality of the flights by availing
many routes to different countries. Currently, the company has than 1000 flights per week to
different destinations, which shows a great milestone in product delivery to the market.
Place
Etihad airline has negotiated several routes to reach a higher number of customers (O’Connell,
2018). The airplane company has grown to markets across Europe, Asia and Africa. The aim is
to ensure that customers access the products easily. Etihad has negotiated deals with many
governments across the world to allow access to airports. Therefore, the company has planes
landing and departing many countries across the globe. Consequently, Etihad has managed to
reach customers in different countries across the globe.
On the other hand, the company has designated travel agents in many towns in major markets
such as Africa, Asia and Europe (Milisavljevic, 2013). The agents offer a close point of access to
information about Etihad Airways services, discounts and travel destinations. In addition to
travel agents, the company has developed a website where customers can buy tickets to
destinations of choice. Consequently, the company has allowed customers to access services at
ease.
Conclusion
The group researched from both online and offline sources to establish answers on how Etihad
airlines approaches the various topics. The topics include,

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1. Market orientation
2. 5C’s of marketing
3. Collecting of market information
4. Segmentation, targeting and positioning
5. 4P’s of marketing
For each topic, the report has articulated the specific approach adopted by the company. The
various approaches adopted have made Etihad airlines a strong competitor in the market.
Therefore, within a short timeframe, the company has managed to increase the market share to
Africa, Asia and Europe.
However, despite the tremendous success, the company should focus more on integrating
technology into marketing activities. The airline should invest more resources into online
marketing such as on website, social media and google ads to reach a large number of customers
worldwide.

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