LSBM101 - Marketing Strategies and Analysis of Air Canada Report

This report provides a comprehensive analysis of Air Canada's marketing strategies, drawing on key marketing concepts and terminology. It explores branding, product strategy, and promotional strategy, illustrating their application with examples. The report delves into the marketing strategies and programs that have helped Air Canada achieve its objectives, including a discussion of its mission, vision, objectives, and ethical considerations. Furthermore, it examines the 7Ps of the marketing mix, the STP (Segmentation, Targeting, Positioning) process, and the marketing research methods employed by Air Canada in its daily operations. The report concludes with a poster summarizing the relationships of marketing functions to other functional areas within the organization.

Airline industry

Table of content
Table of Contents
1.0 INTRODUCTION................................................................................................................................3
2.0 Key marketing concepts and terminology .......................................................................................3
2.1 Branding................................................................................................................................3
2.2 Product Strategy ...................................................................................................................4
2.3 Promotional Strategy.............................................................................................................5
3.0 Marketing strategies and programs that helped Air Canada achieve their objectives. ...................5
3.1 Marketing Strategies and Objectives ....................................................................................6
3.2 Ethical considerations ...........................................................................................................6
4.0 7Ps, STP, Marketing Research used in Air Canada or British Airways daily organisational
operations.............................................................................................................................................6
4.1 7PS used in Air Canada..........................................................................................................7
4.2 STP.........................................................................................................................................8
4.3 Marketing Research...............................................................................................................8
5.0 Poster- Relationships of the marketing functions to other functional areas in organizations. .....10
6.0 Conclusion.....................................................................................................................................12
7.0 References.....................................................................................................................................13

1.0 INTRODUCTION
The concept of marketing is regarded as one of the integral business function in every
type of organisation like manufacturing, airline, service, retail, food and many more. This is
because it is refer as a process or activity which is utilised by an organisation with an aim of
promoting the product or service within an industry in an effective or efficient manner. Along
with this, the core function or purpose of marketing division is to advertising, selling,
delivering the products or services in order to render increased level of customer satisfaction
and also to enhance the overall productivity of firm among competitors (Afonina, 2015). In
regard of this report, airline sector has been considered which is one of the increasing
division in current marketplace. However, the role of marketing in airline sector plays a vital
role as it empower them to enlarge its market share or size and lead them to gain competitive
advantage. For this report, Air Canada has been regarded as it well known as the largest
airline of Canada in terms of fleet size and passengers carried. It is founded in the year of
1937 and serve its services across the globe. This study involves various marketing concepts
and terminology, identification of different marketing strategies and determination of 7Ps.
Finally, analysing the relationship among marketing function and other functional unit of an
organisation for accomplishing the business objective in a better way.
2.0 Key marketing concepts and terminology
In this current era of marketplace, there is an intense level of competition and
challenges among companies which impact over firm's decision making procedure. Hence,
marketing is related to those department of management which tries to design strategies for
building profitable relationships with target consumers. Hence, the marketing concept is
defined as those strategy which establishment implement to satisfy customer needs, increase
sales, maximise profit and beat the competition in an innovative manner. IN regard of Air
Canada, some of its marketing concepts which it practices in order to attain improved level of
consumer satisfaction and it is discussed below:
2.1 Branding
In order to retain existing customer as well as to capture the attention of wide range of
population, an impressive branding activities is considered as an essential requirements. This
is because, branding is related to those process or procedure which enable an organisation to
give an unique name or position for particular product and service by generating and
delivering a best quality commodity. In the activity of branding a products, the term brand
plays a vital role which is the combination of physical and emotional features or idea such as

name, logo, visual identity as well as the message communicated. Hence, with the proper
allocation of resources, it empower an establishment to create a positive response among
targeted market and consumer in an amended way. In relation to Air Canada, its takes an
initiative to make use of all latest or advanced technologies into its functional units as per the
market demand or need. With the help of such contribution, Air Canada is able to acquire the
impressive reputation as largest international airline who serve around more than 220 airports
in six continents. According to the theory of Simmel's opinion, it defined the aspect of
branding as a subjective and objective culture. In term of subjective it encompasses consumer
need or demand and on the other hand objective culture link with adoption of various
promotional tool in order to reach to end user without any hindrances. For example, if Air
Canada make an effort to analyse the market scenario as well as dynamic nature of consumer
then it help them to develop a unique brand image for its commodity among competitors
within prescribed time duration (Bhat and Darzi, 2016).
2.2 Product Strategy
For surviving in a current marketplace for longer time duration, an effective strategy
is an essential element who act as a proper guidance and direction to organisation in order to
accomplish their target in an amended manner. However, the concept of product strategy is
refer as a long term plan that comprises vision, mission, business strategy, marketing mix,
product line and many more with an aim of providing increased level of consumer
satisfaction. The core purpose of this component is that it drive firm to take corrective course
of action as per the changing market condition. In the views of Philip Kotler model of
product strategy, it demonstrate the idea related to identifying the market potentiality as well
as competitors capability and based on that implementing best strategic decision which
empower company to acquire aggressive position in a competing industry in an innovative
style. For example, if Air Canada, take an initiative to determine its targeted market
capability and on the basis of that develop productive marketing strategy and mix, it drive
them to fulfil the requirements of its targeted consumer and also aid them to create a value for
its products and services in an trenchant mode. Hence as per the present performance of Air
Canada, it has been signified that they are capable of focussing over multiple products in a
short time that assist company to make foremost decision regarding target market and market
penetration among rivalries.

2.3 Promotional Strategy
In any kind of products or brand, awareness and information or publicity regarding
price, feature of commodity plays a vital role. This is because, it help an organization to
capture the attention of population towards the brand in order to accomplish their predefined
goal in an prompt way. Moreover, due to the improvement in technology, it direct impact
over the consumer decision making as they are constantly bombarded with promotional
efforts through different channels. Hence, the term promotional strategy is related to those
process or activity which is designed with an intent of informing, persuading and reminding
target audience about product or services in order to gain competitive advantage in an
innovative style. Additionally, the primal benefit that an establishments acquire with the
application of promotional strategy is that it ensure them long term success, assist to bring
more customers as well as drive firm to obtain sustainable profitability ratio without any
obstacles (Bocken, Rana and Short, 2015). According to the push and pull strategical theory
of promotional strategy, it defines that in every sort of type of company's marketing activities
fall into two main factors i. e. push and pull. In aspect of push factors, it reflect the aspect of
promotional activity on distribution channel which means the sales activity pushes the
product to wholesalers, who promote the same to specified network of its retailer, from where
the product will be kept in certain retail store for the consumption of commodity by
consumer. On the other hand, pull factor fully relies on marketing communication like
advertisement, sales promotion, usage of social media, online application and etc. who make
an attempt to generate awareness as well as pulls customers towards the brand in order to
make a decision regarding purchasing the product. For example, If Air Canada analysis the
market and also gran all kinds of promotional tool like advertisement through online,
newspaper, utilizing various social media, internet marketing, direct mail, sponsorship, public
relation and many more. Due to this contribution, Air Canada can easily improve the volume
of sales and also can place the brand in an aggressive or competent position among
competitors.
From the above discussed content, it has been demonstrated that the role of various
marketing concepts help Air Canada to achieve its target and also to develop an impressive
style of bran image among consumer as well as its rivalries.

3.0 Marketing strategies and programs that helped Air Canada achieve
their objectives.
The concept of marketing strategy is regarded as one of the integral determinant in
every organization as it enable them to utilize the available resources at optimal level and
lead them to obtain profit maximization in an trenchant or expeditious way. However, the
concept of marketing strategy is refer to a long term plan which comprises vision, aim,
strategy, customer potentiality in order to acquire pre- determined organizational objective in
a stipulated time duration with an improved mode. Hence, in relation to Air Canada, it make
an attempt to evaluate the industry scenario and as per that create a marketing strategy which
is explained beneath:
3.1 Marketing Strategies and Objectives
• Mission: The mission of Air Canada is to value innovation, accountability and
ownership in order to provide best personal experience in a targeted market.
• Vision: The core vision of Air Canada is to build and maintain a consumer loyalty
with the proper adoption of innovation and strategies.
• Objectives: The primal objective of Air Canada is to provide the best service to its
consumer and enhance the sales volume by 15% in the upcoming 1 year.
3.2 Ethical considerations
This component is one of the important element as it relating to developing a positive
public image of company by accumulating values, principles, accommodating diversity,
compliance or governance consistent for attaining sustainable growth and productivity ratio
(Eloranta and Turunen, 2015). In regard of Air Canada, it always ensure in adhering to all
government rules, regulation, policies into its business function that motive them to reduce
the intervention of government within their business premises. Moreover, they are also
believes in delivering high quality of services that lead them to retain its current users and
also to grab the interests of new customer towards the brand in an innovative style. With the
help of this, Air Canada is able to acquire competent position among several competitors in
an improved manner.

4.0 7Ps, STP, Marketing Research used in Air Canada or British Airways
daily organisational operations
Some other elements that covers the aspect of marketing strategies are STP and
marketing mix which help an establishment to examine the product quality, cost, location,
promotion, process and more so that they can easily implement best decision in regard of
gaining competitive advantage. Moreover, the purpose of each elements of marketing
strategies are differ from each other that enable to enlarge its market division in an amended
mode.
4.1 7PS used in Air Canada
This strategy is viewed as an essential business activity that has been utilised for
promoting the brand or product in competing market in an efficacious way. With the proper
maintenance of this element, it aid Air Canada to pursue its marketing objective in the target
market without any obstacles. The 7ps of Air Canada is discussed below:
Product: Under this component, Air Canada is reputed as a largest domestic and
international airport in Canada by fleet size and passengers carried. Along with this, it serve
its services in more than 200 airports on 6 continents as well as contains various subsidiaries.
Some of them are Air Canada Cargo, vacations, rouge, Jetz, Furthermore, it also offer
premium economy class, Maple Lounges across the globe where access is complimentary for
travellers in the form of gold, platinum, elite group. Hence, by such kind of contribution Air
Canada is able to expand its sales performance in an impressive or productive style (Hakkak
and Ghodsi, 2015).
Price: In this, Air Canada is following a unique pricing strategy that drive them to
explore its market share or size among rivalries. However, they introduce a feature of lowest
price guarantee in which firm claims that in case if a customer find lower priced ticket and
within 24 hours of completion of a ticket purchase on website, a promotion code valued at
$50 along with the difference of price would be awarded to that particular consumer.
However, from this, it assist organisation to increase its customer base in a better way.
Place: Air Canada is headquartered in Montreal in Quebec and contain four major
hubs in Calgary, Montreal, Toronto and Vancouver. In addition to this, it flies its services to
183 destinations over 6 continents that assist them to enlarge its market division at
international pace.
Promotion: In the views of Air Canada, it grab all sort of opportunity which lead
them to expand their profitability ratio in an effectual way. Hence, Air Canada has developed

its own online community as it make use of various social media platforms where they send
direct link to the app which empower them to reach large range of consumer in a better mode.
Moreover, in order to attract the attention of Canadians and non- Canadians it also make an
attempt to start a hashtag campaigns that resulted in enhancement in productivity ratio.
Process: Under this, Air Canada follows streamlined and simple procedure for its
personnel as well as consumers. IN terms of customer, it facilitate the provision of online
booking, web apps, in-flight experience. However, from this attempt, it drive organisation to
attain sustainable growth and productivity ratio in competitor marketplace.
Physical evidence: In this case, Air Canada transformed its outer appearance from
blue colour to black and white with red Maple Leaf accent. That ambiance represents vast or
contrasting season and wildlife which aid establishment to make its manpower more
confident and positive about exploring the brand name in the consumer mind set.
People: In context of Air Canada, their core objective is to provide the high level of
customer satisfaction. Hence, for acquiring the same, organisation contains more than 30,000
employees who are recruited from various corners of the world as well as they are also highly
skilled or capable to adopt novel ideas into business functions (Laud, Betts and Basu, 2015).
With the help of this, Air Canada is able to improve its overall productivity and profitability
ratio among competitors.
4.2 STP
Segmentation: Air Canada segmented its service into those group of customers who
prefer comfort and reliability during their travelling. For achieving the same, establishment
implement best strategic decision that motive them to enhance its sales profitability ratio.
Targeting: Air Canada target upper middle class and business men who can easily
afford any value for consuming the product that benefit company by gaining competitive
advantage in a targeted market.
Positioning: Air Canada intent to place its brand image as a premium international
airlines for which they applies required innovation and advancement in its functional unit in
an effectual mode.
4.3 Marketing Research
The process which Air Canada follows for marketing research within its business
function are as follows:

Define the problem: It is the initial stage in marketing research process, Air Canada
make an effort to clear mentioning the goal or objective which they are desire to accomplish
in upcoming duration. Moreover, they also analyse the market situation and gather the
information related to resources in order to sustainable enrichment in profit margin rate.
Developing marketing research plan: After defining the research problem, then Air
Canada make an effort to create various research plan like interview prospects, conducting
survey through survey monkey, heat mapping tools to analyse the collected data in an
effective way.
Collect relevant data: In this, after making use of various tools, Air Canada make sure
that the respondents which its targets are appropriate and who are capable to give reliable or
accurate information which make the research more effective and proficient (Murphy, 2017).
Analysing data: After gathering the data, Air Canada investigator take an attempt to
analyse the data which aid them to render suitable recommendation for further improvements
in producing report.
Research into action: Once analysing the data, the final step is to identifying the
overall findings and also suggesting some corrective course of action which improves the
overall performance of task or project in an improved way.

5.0 Poster- Relationships of the marketing functions to other functional areas in organizations.
In an establishment, there are different type of departments which are interlinked with each other with a purpose of attaining sustainable
growth and enlargement. On the contrary, each of these divisions are different form each other in terms of roles, responsibilities, functions and
so on. However, in context to Air Canada, some of the interrelationship of its functional units are mentioned below:
Marketing departments and Human Resource departments: In this, marketing section is concern with advertising the service to end users
with the help of various promotional tool. Hence,in case of Air Canada, its human resource division is in need of skilled or potential employees
who can put best contribution towards an enhancement of firm's proficiency ratio. For achieving the same, they make use of marketing
department for inviting large pool of candidates to the company. However, Air Canada's marketing section utilise several tool like conducting
job fare, campus recruitment, advertisement or newspaper or online. With such initiation, HR division can acquire huge number of talents who
help them to fill the vacant job position in an impressive style (Patel and Prajapati, 2014).
Marketing departments and Finance departments: Under this, for accomplishing the desired objective in a better way, an enough amount
of fund is essential which drive them to reach its destination in a prescribed time limit. However, in this relation, Air Canada make an initiative
to determine the market condition and situation and based on that calculate an estimation of overall expense that will incur during the process of
accomplishing the objective. Hence, firm's marketing section informs the overall budge to finance, who make an effort to provide the required
amount in a better way. With the help of such interconnection, it drive Air Canada to deliver its desired service and also can maintain its brand
image in an innovative or competent manner among competitors within prescribed time duration.
Marketing department and Research and Development departments: In this, introducing the product or service on the basis of changing
trend of market and customer demand help an organisation to explore its sales volume rate in an improved mode. In this regard, Air Canada's
R&D division make an attempt to research the market and signifies several factors which impact directly over company's growth rate like price
factor. Hence, by obtaining such information, it help marketing section to put more focus over price while promoting or delivering the product or

services within the existing industry. Thus, with the help of such interrelationship among marketing and R&D, it enable Air Canada to gain
competitive advantage among rivalries in an impressive way.
Marketing department and IT departments: Under this, storing and gathering information plays a vital role as it help organisation to
maintain its working culture in a better manner. Hence, to this relation, Air Canada's IT section make an initiative to identify the consumer trend
and based on that develop various applications as well as create different facility in which organisation can store data of its employees or clients
that help them to enlarge its overall productivity and proficiency ratio (Pearson, Pitfield and Ryley, 2015).
Henceforth, the above explained various interrelation of different business function help Air Canada to accomplish its pre determined
objective in a desired time limit. Along with this, it help them to maintain a positive working environment that improve the overall performance
of company in an impressive mode.

6.0 Conclusion
It has been summarised from the above explained report, effective and best marketing
strategy aid establishment to acquire best position among competitors. IN addition to this,
introducing the product as per the market trend and consumer demand, it help an organisation
to enlarge its market share or size in an innovative style. Moreover, it also lead them to
provide increased level of consumer satisfaction without nay hindrances. Furthermore,
interconnection of various functional unit enable an organisation to attain sustainable growth
and development in an amended way.