Detailed Marketing Analysis and Strategic Recommendations for Flynas

This report provides a comprehensive marketing analysis of Flynas, a private airline in Saudi Arabia. The analysis encompasses macro and micro environmental factors using PESTEL and Porter's Five Forces frameworks, respectively. It delves into customer segmentation, internal capabilities utilizing McKinsey's 7S framework, and a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report also explores the marketing mix and provides recommendations for implementation and marketing controls to evaluate the marketing plan. The analysis highlights Flynas's low-cost strategy, its focus on technology, and its efforts to adapt to the evolving needs of the market, while addressing challenges related to competition, fleet development, and expansion.

Reading Head: MARKETING 0
Marketing
April 8
2020

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Contents
1. Introduction.........................................................................................................................2
2. Macro Analysis...................................................................................................................3
PESTEL Analysis...................................................................................................................3
3. Micro Analysis....................................................................................................................5
Porter’s Five Forces................................................................................................................5
Customer Segmentation..........................................................................................................6
4. Summary of Micro and Macro analysis..............................................................................7
5. Internal Capability Analysis...............................................................................................7
Mckinsey's 7S Framework.....................................................................................................7
6. SWOT Analysis..................................................................................................................9
7. Marketing Mix..................................................................................................................10
8. Implementation.................................................................................................................11
9. Marketing Controls to evaluate the marketing plan..........................................................12
References................................................................................................................................14

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1. Introduction
Flynas is a private airline in Saudi Arabia. The company consists of thirty aircraft. More than
1200 flights operate every week and to around 35 countries (Flynas , 2020). This company
was launched in 2007 and until now it has carried around 38 million passengers to their
destination. The vision and mission of the company is changing with the changing needs and
requirements of the people. Mission and vision should aim at achieving the objectives of the
company. Flynas Mission and Vision for 2020 are:
Mission: The Company wants to deliver high-quality services to its customers and that too at
affordable pricing (Flynas, 2018).
Vision: The Company is aiming at achieving its target of 20 million passengers till 2020
(Flynas, 2020).
Flynas is also launching a new initiative that will empower women. Prince of the country
decided to involve women in the aviation industry. The company is also providing its
services at affordable pricing so that people can afford it. But several challenges are faced by
the company. These challenges include competitors because many aviation companies are
improving their services and they are launching offers to attract people towards them. The
company also faces challenges at the time of development of the fleet. This is because it
involves billion-dollar deals and expansion of the company is also challenging (Townsend,
2016). The company has also been awarded as an East’s leading low-cost airline. The
company will achieve its vision objective by the strategy of low-cost fares (Flynas , 2020).
Currently, the company is achieving its targets and in several years there is a rapid increase in
passengers of the company.

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2. Macro Analysis
PESTEL Analysis
The Macro analysis is the first step that involves strategic analysis. It is considered to be the
cycle of strategic planning. This will include external analysis and Pestel analysis. PESTEL
analysis includes factors that are related to Political, environmental, Social, Technological,
Economical and Legal factors. This analysis is also considered to be an important tool for the
growth and development of the company. These factors are all the following:
a) Political Factors
Political factors can affect the company because different political parties implement
different rules and regulations. Flynas has also changed its policies according to the
influence of the government. Political factors that are included are environmental regulations,
employment, taxes and many more. For example, the Government of the country has decided
to involve women in the aviation industry. Therefore the company had employed women.
The government has also included charity policy for companies. This fund will be used in
those sectors where government goods and services are not provided (CAPA, 2018).
b) Economic Factors
Economic factors are considered to be very important for every business because it can affect
the behaviour of consumers and suppliers. It will also affect the growth and development of
every company. Economic factors for flynas airways include interest rates, inflation,
development, and growth of the economy, fare prices, exchange rates, cost of living,
employment hours and many more. The company has affordable pricing factors for people so
that they can afford and it also attracts customers. In the Saudi Arabia the factors that can
affect are ticket prices, per capita income, population and inflation (Secilmis & koç, 2016).

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c) Social factors
Social factors also influence flynas because culture and social factors are different. The
company needs to understand this concept and respect all cultures. In this industry people
from different backgrounds came across. The company needs to provide training to its
employees so that they can respect every customer. A safety and health factor also affects the
company. Flynas airlines have received a certificate for providing safety to its customers.
This is done through effective leadership and control (Flynas , 2020).
d) Technological factors
Technological factors help the government in achieving its objectives because advance
technology helps in reducing the cost and provide quality of service. The technology that is
used by Flynas is one of the latest technologies. Those technologies also enhance competition
in the market. The company has introduced aircraft, namely 120A320 neo aircraft. These
aircraft involves a lot of investment (Flynas , 2020).
e) Environmental factors
An environmental factor includes all the factors that can have a long term impact on the
environment. This includes awareness in the company about the environment. Flynas has
initiates such aircraft that will imitate less pollution. This can protect the environment from
pollution.
f) Legal Factors
Every country has its legal system and company have to operate according to the legal laws
of that country. Saudi Arabia also has some legal factors that are included in the policies of
the company. The government has implemented safety rules so that the safety of passengers

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can be ensured. There is one more law i.e. Civilian Aviation law. According to this law
development of air, the carriage is important (Flynas , 2020).
3. Micro Analysis
Microanalysis is also considered to be important because it will reflect the competitive
market. It is the tool through which risk can be identified.
Porter’s Five Forces
There are five factors in this analysis. These factors are the threat of new entry, barraging
power of supplier, the threat of substitutes, the bargaining power of customer and competitive
rivalry.
a) Threats of new entry
Today it is been observed that in almost all the industries there is a high level of competition.
There is always a threat of new entry into the market. Therefore existing companies create
some barriers for the entrance of new companies. Flynas has also created some barriers in
terms of size, capital, and technology. The company has invested a large amount of capital
and it is very difficult for any new company to invest that much amount in beginning. Flynas
is providing affordable fare prices. For any new company decreasing its price is also difficult
(Shane, 2013).
b) Threat of substitutes
There is always a threat of substitutes because there are many companies in the market that
can provide better deals to people. But in the case of flynas this is not a threat because the
company is providing advance technological services at affordable prices. People will attract
the company if they will get the best services at affordable prices.

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c) Bargaining Power of Suppliers
Suppliers are considered to be an important part. As they supply valuable resources to the
companies. The company has decided to make a deal with suppliers regarding airbus, engines
and other objects that are been used in planes and aircraft. Suppliers of a company are the
same as other leading automobile companies such as Rolls Royce holdings (Babić et al.,
2017).
d) Barraging power of customers
Customers are considered to be the main and essential components of the company. Buyers
have strong and effective bargaining power and therefore they can easily influence the profit
of suppliers. But the company has to opt for the situation in which they do not to be
dependent. Therefore interest of buyers matters for the organization. Flynas is providing
luxury services to customers at affordable rates. And these can attract existing and new
customers towards the company.
e) Competitive Rivalry
There is a lot of competition that is been faced by companies in every field. Rough
competition strategies, strengths, and weaknesses of competitors can also be identified. The
rivalry between competitors in terms of quality service and prices is a common aspect that is
faced by every business.
Customer Segmentation
Flynas is considered to be a leading company that is providing low budget tickets to its
customers. The company has targeted young individuals and therefore the company has
started to sell its ticket online. This will provide a better experience for customers and their
time can also be saved. They will also be able to use advance technology that is initiated by

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the company. Digital merchandising strategy is the segmentation that can provide a
personalised experience to the customer of the company (RICHMOND, 2017).
4. Summary of Micro and Macro analysis
Micro and Macro factors are important for every company because they will identify the
factors that can influence them. Different types of analysis are been used to identify these
factors. From the above analysis, it has been observed that Flynas is using a low-cost strategy
for its customers so that it can attract customers. The company is also aiming to use advance
technology so that personalized experienced can be provided to its customers. The company
is also taking care of legal and political policies so that they do not have to face many
complications. The company has also taken all the necessary steps that can prevent the
environment. Safety measures for the health of customers are also taken by the company. The
prices of the company are low from its competitors this strategy hep company in gaining an
advantage in the market. The company wants to achieve its target and from several years
customers of the company are increasing.
5. Internal Capability Analysis
Mckinsey's 7S Framework
It is the framework of management that was developed by Robert H. Waterman. This
framework was developed in the 1980s. This framework includes seven components, namely,
Structure, Strategy, Systems, Styles, Skills, Staff, and Shared values.
Strategy: The strategy that the company has adopted to gain a competitive advantage in the
market is the low-cost strategy. In this strategy quality service with advanced technological
features at affordable prices is provided to customers. The company has also adopted an

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expansion strategy. This will company in expanding its business globally. The company has
also signed agreements with Egyptair (Flynas, 2020).
Structure: The structure of the airline industry differs from other industries. In Flynas airline
management of top to bottom is organized in a pyramid structure. There are different
departments for every activity that is involved in the organization. CEO of the company will
report to BOD with their team members or executives. There are different types of mangers
such as Chief HR Officer, Chief Finance Officer, Chief investment officer and many more
(Weedmark, 2019).
Systems: Several systems take place in the organization daily. In flynas daily system includes
booking tickets, Customer service, It Services, labour services, engineering services and
many more.
Skills: Some skills are required by employees. In flynas these skills include greeting
customers with respect, Respect their culture and values. Provide them with safety measures,
Understand their requirements.
Staff: Flynas has received the award for the best staff because the company provides training
regarding essential kills. The staff of this company is highly capable to understand the
requirement of customers. Employees are also very professional in their work and
responsibility (Flynas, 2019).
Style: There are different departments for every activity in the company. This provides clarity
in the minds of employees. Mangers are obliged to present a daily report and the activities
that have taken place in the company. Leadership skills that the company has adopted are
problem-solving skills (Flynas, 2019).

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Shared Values: Company also shares values of respect, dignity, loyalty, and trust among its
employees and customers. These shared values helped the company in achieving its success.
6. SWOT Analysis
SWOT-analysis helps in identifying strengths, weaknesses, opportunities, and threats of the
company.
Strengths:
Valuable Resources.
Low-Cost model strategy.
Leadership.
Digital Technology.
Skills of employees.
Opportunity:
Expansion in other countries.
More advanced technology.
Professional staff.
Financial Sources.
Innovations.
Weakness:
Insufficiency of resources.
Financial resources.
Marketing skills.
Expansion of the company.
Threats:
Competitors.
Offers of other airlines.
Changes in the market.
Changing needs of the customers.
Environmental changes (Harvard Case
Studies, 2020).
The goal company should set is the goal of increasing profits of the business. This goal is
gaols will help in development of the company. Company will also be able to expand its
business. This goal is specific in nature (S). Profits of the company can also be calculated

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easily by calculating sales and revenues of the business. This goal can also be measured
easily (M). The main goal of every business is to earn maximum amount of profit. For this
company has to implement several strategies and plans. This goal can be attainable by the
company (A). This goals is relevant and time based in nature because company will
implement new technologies or offers for its customers there are chances that they might earn
profit in a short period of time. Company is providing advance service and charging for it
therefore it is relevant in nature (R and T) (Flynas, 2018).
7. Marketing Mix
Marketing Mix refers to the set of actions that the company used to promote its products or
services in the market. There are four P’s that are considered. These P’s are Price, product,
promotion, and place. Flynas is also using this feature in promoting its services. The prices of
the company are comparatively lower from its competitors because the company wants to
achieve its target of twenty million passengers per year. By this strategy, the company is also
gaining a competitive advantage in the market. Offering cheap flights to customers will
attract more customers to the company (Flynas , 2020). The product or services that the
company is offering is highly professional. Services are afforded with advanced technology
and features. This will help customers in experiencing the luxury and personalized services
can also be offered to them. The company is also using proper health and safety measures so
that the safety of customers can be ensured (Flynas, 2019). The company is also promoting
its services by different mediums. Now the company has moved its approach towards
promoting its products digitally. By this people will be influenced as they will have clarity in
their minds, It is also authentic can be maintained. This can prevent people and companies
from involving in fraud activities. Promotion can also reach many people at the same point in

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time. The company is operating in Saudi Arabia. They are planning for expansion and
looking for sources of finance. Currently, the company operates its flights in 35 countries.
They are domestic and international.
There are several components of this model that includes situation, objectives, strategy,
tactics, action and control. Flynas can adapt this model. This will make company aware about
their current situation, future goals, strategies that can be used, achieving targets, action plan
and control. Sine it is important for company to adapt digital marketing. Flynas will calculate
their situation and challenges that they are facing such as finance. After that company will
focus on their expansion strategy and target of 20 million passengers every year. Then low
budget strategy of company can be used for marketing its services as it will attract customers.
Further, a plan will be created by company to achieve those objectives. Furthermore,
marketing control KPI’s should be used to control the marketing plan of the company (Wood,
2010).
8. Implementation
Marketing plan that will be implemented by the company can be effective as it is having
many effective components. There are several steps through which risks can be eliminated.
These steps are as follows:
a) Review the process
If company will review the process before implementing the marketing plan it can eliminate
risks and it will also manage the plan effectively. Critical evaluation should be done by the
company before implementing the plan.
b) Create Balance

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Creating balance is also important as it will help in analysing the plan. It is not enough only
to implement strategies but it is also essential to relate it with other sections of the plan.
Flynas should relate digital marketing with their expansion and low cost budget strategy.
c) Summarise situation using SWOT
Marketing plan f the company should be according to its SWOT analysis. Flynas should
create plan according to its strengths. Digital marketing is the approach through which
company can easily measure the effectiveness of the plan.
d) Linking SMART objective
Marketing plan of the Flynas should be linked with the SMART objective. It is because this
analysis is done before choosing the marketing strategy. It will help in reducing the risk of
preventing the plan from failure (Kotler & Keller, 2016).
9. Marketing Controls to evaluate the marketing plan
Implementation of the marketing plan is not enough it needs to be evaluated. The evaluation
will help companies in understanding the success rate of the marketing plan. Effective
monitoring and evaluation of the marketing plan ensure the company that their investment is
not being wasted. To evaluate effective different tools has been used by companies. These
tools are:
a) Sales Revenue
Effectiveness of marketing can be calculated by the sales revenue. It is because marketing
directly affects sales of the company. Sales revenue is considered to be an effecting tool for

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calculating revenue that is generated by the company. But to initiate this tool it is important
to understand the concept of inbound and outbound marketing.
b) Cost Per Lead
Calculating cost for customer acquisition is also an important part. It will reflect integration
of marketing with CRM platforms. It also helps in combining cost that is related with ERP
integration. For calculating this cost it is important to include cost of manpower, technology
and software, and overhead. Budgeting can also be done through this tool.
c) Customer Value for Lifetime
It is very important for company to build customer relations. For judging the success rate of
marketing it is important to 4recah to the existing customers. It will help in calculating their
needs and requirements. It will also be able to judge the satisfaction of customers (Edgecomb,
2017 ).

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April 2020].

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