BE200 - United Airlines: Segmentation, Targeting and SWOT Analysis

This report provides a comprehensive analysis of United Airlines' marketing management strategies. It begins by defining the marketing environment and examining the implications of demographic, cultural, and economic factors on United Airlines' decisions. The report then delves into market segmentation, targeting, and positioning, explaining how United Airlines utilizes psychographic segmentation to target premium customers. Finally, a SWOT analysis is conducted to evaluate United Airlines' strengths, weaknesses, opportunities, and threats, offering insights into the company's competitive position within the airline industry. This document is available on Desklib, a platform that provides students with access to a wide range of study resources, including past papers and solved assignments.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Table of Contents
Answer to Question 1.................................................................................................................2
a. Definition of Marketing Environment................................................................................2
b. Implications of Demographic, Cultural and Economic Environments on
Decisions of United Airlines.........................................................................................2
Answer to Question 2.................................................................................................................3
a. Definition of Market Segmentation, Targeting and Positioning........................................3
b. Usage of Segmentation by United Airlines........................................................................4
Answer to Question 3.................................................................................................................5
a. Definition of SWOT Analysis............................................................................................5
b. Components of SWOT Analysis........................................................................................5
c. SWOT Analysis of United Airlines....................................................................................6
References..................................................................................................................................8

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Answer to Question 1
a. Definition of Marketing Environment
The marketing environment is the actual combination of internal along with external
factors along with forces which will be affecting the ability of the company in establishing
the proper relationship along with serve with the customers. The marketing environment of
the different businesses consists of both external along internal environment. The internal
environment is specific towards the customers along with this is inclusive of the different
owners along with materials and machines (Andaleeb 2016). On the other hand, the external
environment is inclusive of the larger societal forces which can affect the society.
Figure 1: Marketing Environment
(Source: Andaleeb 2016)

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b. Implications of Demographic, Cultural and Economic Environments
on Decisions of United Airlines
The different changes in the demographic, cultural along with economic environment
plays a major and substantial role on the marketing decisions of the United Airlines.
The economic factors are inclusive of the different changes in the preferences of the
customers in the market and the shift in the spending patterns of the customers as well. In the
present scenario, this has been seen that there are different budget airlines in the market
which are offering quality services at an affordable rate. This is one of the major reasons
which is affecting the overall effectiveness of the United Airlines in a negative manner
(Andaleeb 2016).
Demographic environment helps in showing change in the age structure, shift in the
geographic population along with increase in the diversity in an effective manner. The age
variable is one of the major factors as trends are changing which is necessary to be
considered as the young generation prefer budget airlines as they do not have such income
and this is required to be considered by United Airlines (Kalafsky and Sonnichsen 2015).
Cultural factors are inclusive of advertising and changing preferences of the
customers in the market. This respective factor is required to be considered by United
Airlines as the other competitors such as Air Asia and Indigo are using social media
networking in order to attract customers and this can negatively affect the overall popularity
of the company (Andaleeb 2016).

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Answer to Question 2
a. Definition of Market Segmentation, Targeting and Positioning
Market Segmentation is the process of dividing the entire market of the different
customers who are potential in nature which are based on the various characteristics. The
segmentation helps in dividing the complete market into small segments who have similar
kinds of tastes and preferences. The market segmentation is done on basis of income, age
group along with gender which is essential in nature to be considered (Andaleeb 2016).
Market Targeting is the process of selecting the group of customers from the entire
market and this consists of the buyers to whom the organization needs to satisfy the different
requirements of the customers to satisfy the needs of the customers ion an effective manner.
Market Positioning refers to the perception of the consumers of the product which is
in relation to the different competing brands and products. This is the process which helps in
establishing a proper brand image of the product which will be consumed by the customers in
the market.
b. Usage of Segmentation by United Airlines
United Airlines utilizes the psychographic kind of segmentation in order to divide the
service market. This generally involves the lifestyle of the individuals who are premium in
nature and they prefer the exclusive kind of services from UA as well (Zia and Kumar 2016).
UA tries to use the predictive analytics technology wherein the company tries to attract the
premium group of customers and this uses the psychographic segmentation characteristics.
Firstly, the company has tried to categorize customers in different motivational type of
groups:
 Global Executives

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 Schedule Optimizers
 Reluctant Travellers
 Travel Seekers
 Frugal Flyers
From the above, this can be analysed that UA is mainly focusing on the customer
experience and this has implemented the valued-based psychographic segmentation which
helps in increasing the view of the different customers and this will increase the number of
customers.
Answer to Question 3
a. Definition of SWOT Analysis
SWOT analysis is the strategic planning method which is being used to help the
organization in identifying the different strengths, weaknesses, opportunities along with
threats which is related to the business competition along with planning for the project. This
is the framework which is being utilized in evaluating the competitive position of the
company in an effective manner (Venter, Wright and Dibb 2015). This is the respective
model which analyses the potentiality of the organization in performing certain aspects and
this is being utilized by the different organizations in carving for the sustainable niche in the
entire market effectively.
b. Components of SWOT Analysis
Strengths- This is the advantage which can be gained by the organization and the
aspects which are required to be considered in the section is inclusive of performance of the
company along with analysis of the different strong points which is best in comparison to the

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other competitors in the market. The strengths are inclusive of strong brand name, good
reputation along with cost advantages which can be different strengths.
Weaknesses- This is entirely the opposite of strengths and the weaknesses is inclusive
of the different kinds of hindrance of the development of the organization. The worse areas
are required to be analysed in comparison to the other competitors. The weaknesses are
inclusive of weak brand name along with poor reputation which can affect the overall
profitability of the company (Bruwer and Li 2017).
Threats- This is inclusive of the different kinds of aspects or the markets which can
cause damage to the firm or possibly damage the goodwill of the firm in a negative manner.
Furthermore, the vicious competition from the peer enterprises will be determined as this will
provide a brief overview on threats in an effective manner. The different threats are inclusive
of the different changes in the trend, new legislations along with different substitute products.
Opportunity- The opportunities is inclusive of the different potential customers along
with the different kinds of promising aspects which can be gained by the company in a proper
manner. This is inclusive of arrival of new technology, unfulfillment of the different demands
of the customers along with training courses which will be beneficial for the overall success
of the firm (Feili et al. 2017).
c. SWOT Analysis of United Airlines
Strengths
 Relatively high productivity of the
different employees
 The operational network is strong in
nature as there are more than 5000
Weaknesses
 The strong kinds of union are the
major concern
 The weak financial position of the
organization and there are

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flights daily which are travelling to
more than 360 destinations in more
than 6 countries (United Airlines,
2018)
 The leading loyalty program of the
United Airlines is the other
strength
continuous losses
 There is heavy dependence on the
different third-party providers
which is inclusive of the fuelling
operations (Schlegelmilch 2016)
Opportunities
 The growing airline industry of
United States
 There is huge growth in the global
tourism along with travel industry
 The US economy is back on the
growth track (Gengler, C.E. and
Mulvey 2017)
Threats
 The rise in the price of the fuel is the
threat which is affecting the UA
 There is huge persistence of the
different kinds of risks which is
relating to the recession in the entire
globe (Flouris and Oswald, 2016)

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References
Andaleeb, S.S., 2016. Market Segmentation, Targeting, and Positioning. In Strategic
Marketing Management in Asia: Case Studies and Lessons across Industries (pp. 179-207).
Emerald Group Publishing Limited.
Bruwer, J. and Li, E., 2017. Domain-specific market segmentation using a latent class
mixture modelling approach and wine-related lifestyle (WRL) algorithm. European Journal
of Marketing, 51(9/10), pp.1552-1576.
Feili, H., Qomi, M., Sheibani, S. and Azmoun, G., 2017, November. SWOT Analysis for
Sustainable Tourism Development Strategies using Fuzzy Logic. In 3rd International
Conference of Science & Engineering In the Technology Era.
Flouris, T.G. and Oswald, S.L., 2016. Designing and executing strategy in aviation
management. Routledge.
Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning: Segmentation via
willingness-to-pay and means-end brand differentiators. Journal of Brand
Management, 24(3), pp.230-249.
Kalafsky, R.V. and Sonnichsen, T., 2015. Employing SWOT analysis in coursework on the
geographies of regional economic development and trade. Journal of Geography, 114(5),
pp.177-187.
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets.
In Global Marketing Strategy(pp. 63-82). Springer, Cham.

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United Airlines. (2018). [online] Available at: https://www.united.com/ [Accessed 22 Nov.
2018].
Venter, P., Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), pp.62-83.
Zia, M. and Kumar, N., 2016. A Three Dimensional Vertical Differentiation Model:
Implications for Segmentation, Targeting and Positioning.