Marketing Principles and Practices Report on British Airways - LSBM101

This report provides a detailed analysis of British Airways' marketing principles and practices. It begins with an introduction to the airline industry and British Airways' position within it, followed by an explanation of key marketing concepts such as branding, product strategy, and promotional strategy as applied to the airline. The report examines British Airways' branding strategies, including the focus on quality, safety, and customer experience. It explores the company's product strategy, detailing the services offered and product development initiatives. Promotional strategies, including advertising, digital marketing, and sponsorships, are also discussed. The report then analyzes the marketing strategies and programs that have helped British Airways achieve its objectives, including ethical considerations and cross-functional relationships. Finally, the report concludes with recommendations for improving marketing strategies and enhancing the airline's performance. The report also covers the 7Ps and STP marketing models used by British Airways.

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Marketing Principles and Practices
Report

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Table of Contents
1.0 Introduction............................................................................................................................................................................................................2
2.0 Key marketing concepts and terminology applicable to British Airways..............................................................................................................4
2.1 Branding British Airways...................................................................................................................................................................................4
2.2 British Airways Product Strategy.......................................................................................................................................................................5
2.3 British Airways Promotional Strategy................................................................................................................................................................7
3.0. Marketing strategies and programs that helped British Airways achieve their objectives...................................................................................9
3.1 Marketing Strategies and Objectives of British Airways...................................................................................................................................9
3.2 Ethical considerations -How British Airways achieve their objectives............................................................................................................10
4.0 7P’s used in British Airways daily organisational operations..............................................................................................................................11
4.1 STP used in British Airways daily organisational operations..........................................................................................................................13
5.0 Cross-functional relationship...............................................................................................................................................................................14
6.0 Conclusion / Recommendations...........................................................................................................................................................................15
7.0 References............................................................................................................................................................................................................17

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1.0 Introduction
Airline Industry, a global sector with various aircraft moving travellers, cargo articles and mail to the distinctive parts of the world, was founded
in 1903 by Wright brothers. According to Chanddler (2016), this invention of the first airplane was created from the two air travel steam-
powered, non-control gliders, initiated by two Frenchmen, clement Ader, and the Eole in 1783, 1809 and 1890. Their innovation competed for
the most important part in the military exploration during World War1.
In the 1960s the Government took control and turned the airline industry the first global business cargo. (Meril,2013). However, after
deregulation in 1978 the industry become complex and competitive, airlines started to choose individual routes and prices. As a result, many
strong brand loyalty airlines, such as British Airways emerged (Britishairways,2019).
In this report, it will address the vital advancing strategies utilized in British Aviation routes and the branding as a business affiliation. It will
moreover see at British Aviation routes programs run, how they are assembly the association objectives and their moral standing. Lastly, it will
consider the relationship between exhibiting and other trade capacities within the British Aviation routes. In completion, a few suggestions are
made on how to make strides any of the displaying strategies utilized.

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Figure 1: (Britishairways,2019)
British Airways is owned by International Airlines Group and is considered as one of the largest airlines in term of passengers carry and number
of fleets. Under the leadership of Willie Wash, the company is positioned as the premium airlines and largest international carrier at the global
platform. The company headquartered in the UK with its most of the operations in one of the busiest airports in the world that is Heathrow in
London.
2.0 Key marketing concepts and terminology applicable to British Airways
The concept of marketing starts with identifying needs and wants of customers and then focusing on business activities to fulfil their needs and
wants on timely manner (Kotler,2003).
In order to understand the concept of marketing principles and practices, analysis of British airways marketing activities is done. British Airways
offers services to its customers that include cargo services and flights to different destinations. Services are intangible that cannot be seen but felt
by the users, same with British Airways as the company offers experience, luxury and pleasure to its target customers that can only be felt not
collected or stocked.

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2.1 Branding British Airways
Branding
In the marketing activities, branding is considered as the important component in order to build the image of the company in the market and in
mind of customers. Branding is positioning of the brand that could be logo, name, symbol in the mind of people so that it helps customers to
distinguish the brand from other competitors. With the strong branding strategies the company can gain competitive advantage as it represents
consumer’s feelings and perceptions about a company’s performance and products (Shaw,2016).
British Airways branding strategies include focus of the company on the quality aspects as the company offers luxury and quality of services to
its target customers at different levels. British Airways has narrow scale of operations as the company mainly focus on its airline segment in the
existing market and not focus on expansion of its business. In the airline industry, other competitors such as Virgin airlines expanded and
positioned as a brand that focus on various segments such as insurance, radio station, financial services and record shops. Another competitor
EasyJet also expanded to different segments such as internet cafes, car rental, insurance services and financial services. Further, British Airways
branding includes six elements that helps the company in improving its brand image in the market (Britishairways,2019).
 British Airways focus mainly on providing safety to its customers with convenient and reliable airline experience.
 The company focus on enhancing the customer experience by offering them comfortable seats, fringe meals and beverages, and high
safety standards.
 British Airways reflects its brand in the market as high customer safety with reliability and excellence services.
 The company distinguish itself in airline industry by establishing as the brand that offers glamour for people and the concept of the right
time to all the class of customers. Due to that customers from each and every class feel like a valued person for the company and this
help the company to build strong network.

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 Further, organizational culture of the company reflects reliability, English culture and organization of resources (Mills,2017).
 The services of the company are affordable and suitable for all class of people whether business class, executives and students.
Figure 2: (Britishairways,2019)
2.2 British Airways Product Strategy
Product is the core element and an important consideration for the business. The organization can offer tangible and intangible products with
unique specifications, homogeneous or heterogeneous products and many more. Tangible products are those that can be seen and touched by
customers and attract customers with physical presence. On other side, intangible products are services that can only be felt and experienced by
customers.
British Airways offer intangible products to its customers that includes offering of flights and cargo services. Product development strategy is
used by the company to position itself in the market. British Airways services have high quality and high standard and in order to maintain this
company adopt for continuous product development strategy. The company improve its services by catering the needs to its different target
groups such as by analysing the expectations and needs for business class, economy class and first class customers. British Airways customize
its services as per the requirement of people such as the company offer unique lounges for first class group and an on board menu for wine and
food for economy class group.

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Further, in order to connect to its loyal customers the company offers silver, blue and gold cards to its loyal customers in that the company offer
standard services to its customers with free drinks and food on flights. Moreover, in flight magazines, movies, four radio channels, and
entertainment programs are also provided to its customers in order to maintain its standard quality.
British Airways has presence across 153 countries in the world and in order to sustain its existing market share the company uses services and
product strategies mainly promotion for long term growth and success. The company in order to sustain and grow owned many fleets such as
Boeing 787, 747 and 777 through that the company offers range of services in the airline industry. Along with that the company use latest
technology for offering advanced services to its customers for different classes such as business class, economy class and premium class.
Customization of services includes entertainment screens, additional spaces, cabins, beds, and meal course. The company’s services become
luxurious and sophisticated with continuous improvement. The product strategy is the main factor that contributes effectively in the success of
the organization in the market and to gain competitive advantage. Therefore, it is important for big players like British Airways to focus on
product development through continuous improvement.
Figure 3: Services offered by British Airways
Source:

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2.3 British Airways Promotional Strategy
Promotion strategies are used by the companies to establish its brand in the market and to make customers aware about new product and services
that the company offers. British Airways advertising and marketing strategies are described below:
In the airline industry, the competition is high and the companies in order to survive and grow need to use effective promotion strategy. In case
of British Airways, the company mainly promote its services through billboards, TV advertisements, and using print media such as business
class magazine and newspapers. With that the company used digital platform and has presence over all online portals and have its mobile
application and website for booking and taking feedback from the customers. The company also use publicity as a promotional tool as in 2012,
British Airways were partners for Olympic Games and London Paralympic. Further, the company in order to promote its services had brand
ambassadors such as Golfero8 Justin Rose and along with that the company sponsor various cultural and sports events across the globe. “ British
Airways has also promoted its brand through films like Planes”.
British Airways also use techniques such as discounts and additional offers during festive seasons. For instance, Christmas gift vouchers, escape
ticket offers that are applicable when the customer flies to 14 travel zones in that flat fare will be charged from £49 return on low fares to 135
destinations across Europe. On other side, the company offer free one way tickets to business class customers who upgrade to first class. British
Airways market share grows because of selling of tickets in advance through its discounts and vouchers. Such as the company offer discounted
and promotional tickets in December for following April.

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Figure 4: (Britishairways, 2019)

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3.0. Marketing strategies and programs that helped British Airways achieve their objectives.
British Airways marketing activities are focused towards five strategic goals. First is to offer well designed services and quality services to its
customers. For that British Airways focus on identifying customer needs and to deliver services to satisfy them profitably. In continuation with
that the product strategy of the company includes quality of flights, and customized flight services for different destinations. British Airways
offers business class, executive class, security, speed and support facilities for satisfying different needs of customers. As comparison to its
competitors the company provide better facilities such as allocated seats, drinks, meals, entertainment and on time flights. Further, the company
prove ad on services to its loyal customers who have silver, blue or gold cards. Customers who have gold and silver cards can access to
luxurious lounges in all the busiest airports or most used airports in that lounges customer can take experience of luxury stay, can relax, take
shower and can go to gym. Especially for business class people, the company offers services that eliminate loss of time and helps the customers
to utilize it.
3.1 Marketing Strategies and Objectives of British Airways
British Airways was founded in 1974 with the objective of administrating two airline corporations; British European Airways and British
International Airways. At present, British Airways is amongst the biggest airline company in the UK with assets of 273 fleets that cover 400
destinations. The company primary objective is to satisfy need of different customers by offering them services for economy class to business
class segment (Coller et.al,2016).

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Figure: 4 British Airways Past Records
Source:
British Airways in term of passengers carried is the second largest airline and the first one is EasyJet in the UK. The company is listed on the
FTSE 100 index and London stock exchange. Under the leadership of Spanish business man, Alex Cruz, British Airways become first airline
that generated $1 billion from single route in a year.
3.2 Ethical considerations -How British Airways achieve their objectives
British Airways vision is to be the sustainable and ethical airline and in order to achieve this; company started an initiative as “one destination”
that includes activities for reduction of carbon emissions, reducing waste, recycling waste, and minimizing noise and air pollution. British
Airways spend huge amount of its profits in corporate social responsibility activities. British Airways focus mainly on its core business such as
passengers carry and cargo. With that the company exceeded baggage targets and punctuality and achieved higher customer satisfaction score.
British Airways follows sustainable business strategy in order to build strong brand image and to adapt to the changing business environment.
British Airways has been investing continuously into the community development programme and invest in using resources that save energy and
fuel and ensure sustainable business. Global British Airways ensures that services they offer satisfy needs of customers across the globe and

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premium British Airways ensures that all customers get unique services and products whenever they require at affordable prices
(Britishairwayscsr,2019).
Figure 6: BA Corporate Responsibility
4.0 7P’s used in British Airways daily organisational operations
Marketing mix includes 7Ps of marketing that are product, place, price, promotion, process, people and physical evidence. British Airways
marketing mix is explained below that the company use in order to target its customer. According to Dudovskiy, 2016, it is important for the
organizations to focus on marketing mix. In 2015, British Airways took decision to separate its marketing department and restructured its
organization in order to focus on its commercial operations (Ghosh,2015).