Marketing Plan for British Airways: Expansion into New Destinations

This report provides a comprehensive marketing plan analysis for British Airways (BA), focusing on its expansion into seven new destinations. It begins with an executive summary outlining the key objectives and steps involved in the marketing plan, including situational analysis, STP elements, and monitoring processes. The report reviews changing perspectives in marketing planning, evaluates BA's capabilities, and explores techniques for organizational auditing using SWOT and PESTLE analyses to assess strengths, weaknesses, opportunities, and threats, as well as external factors. It identifies and addresses barriers to marketing planning, such as government regulations and employee-related issues, and suggests solutions like management support and contingency planning. The report also details the development of a market plan for a new product or service, emphasizing the importance of strategic planning, new product development techniques, pricing policies, distribution strategies, and communication mixes. Ethical issues and their influence on marketing planning are examined, along with examples of how organizations should respond to them. The conclusion emphasizes the importance of considering all aspects of marketing planning to achieve BA's expansion goals.

Marketing Planning

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................4
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................6
1.1 Changing perspective in marketing planning........................................................................6
1.2 organisations capabilities for planning its future marketing activities..................................6
1.3 Techniques for organisational auditing and external factors affecting marketing planning. 6
1.4 audit of organisation and analysis of factors affecting marketing planning.........................7
M1 ..............................................................................................................................................8
D1 ...............................................................................................................................................8
TASK 2 ...........................................................................................................................................8
2.1 Main barriers to marketing planning.....................................................................................8
2.2 Ways to overcome the barriers to marketing planning.........................................................9
M2...............................................................................................................................................9
D2................................................................................................................................................9
TASK 3..........................................................................................................................................10
3.1 Market plan for a product or service...................................................................................10
3.2 Marketing planning is important in strategic planning.......................................................10
3.3 Techniques for new product development..........................................................................11
3.4 Recommendations for pricing policy, distribution, and communication mix.....................11
3.5 Dealing with factors affecting implementation of marketing plan.....................................12
M3.............................................................................................................................................12
TASK 4..........................................................................................................................................12
4.1 Influence of ethical issues on marketing planning..............................................................12
4.2 Examples of how organisation should respond to ethical issues........................................13
4.3 Consumer ethics and its effect on marketing planning.......................................................13
D3..............................................................................................................................................13

CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

EXECUTIVE SUMMARY
Marketing planning is a process in which a plan is required to be prepared for the
organisation in which all the objectives that are required to be achieved will be specified and it
will be mentioned that what steps are to be taken to achieve those objectives. In creation of a
plan various steps will be required to be performed such as developing elements of marketing,
situational analysis, developing STP elements and final stage will be to monitor the processes
that will be undertaken. In this report marketing plan in relation to British Airways plc will be
discussed in relation to the project of the company regarding expansion of its services to seven
new destinations. Changing perspective in the marketing planning are reviewed and the
capabilities of the organisation are evaluated. The different techniques that are used for the
auditing purpose are discussed along with the factors that affect the planning and than there
evaluation has also been performed to know about the company. The barriers that are faced by
BA and the way in which they will be resolved are provided in the report. In the introduction of a
new product or service it is required that a new and effective marketing plan is prepared and it
has been prepared in the report explaining all the elements that are needed to considered while
formulating a plan. It can be understood that marketing planning is an essential component in
process of strategic planning and both the processes are required to be conducted on the
combined basis. The new product is required to be developed and foe this purpose various
techniques are present which should be used and those are mentioned. The manner in which the
factors that will affect the effective implementation of marketing planning will be taken into
account are discussed and company will be able to take advantage of it. The ethical issue
whether in relation to organisation or consumers which are present are described and the manner
in which they can be dealt with is also understood as it has an impact on marketing planning. It
has been concluded from the report that marketing planning can be done effectively by taking
into consideration all these aspects and company will be able to achieve the targets that has been
set by it.

INTRODUCTION
A plan is required to be made by every organisation which will include the stratgies that
are required to be used for successful attainment of the objectives (Wilson, 2010). If such plan is
made in relation to the activities of marketing then it will be known as marketing plan. In this
report various issues such as changing environment, distribution channels, marketing
communication will be considered and recommendation in context of them will be provided for
British Airways PLC who is for the expansion of the passenger services to the seven new
destinations. A marketing plan in relation to this will be formulated by considering various
factors that requires attention.
TASK 1
1.1 Changing perspective in marketing planning.
In the increasing competitive environment marketing planning is the important aspect
which is required to considered by the British Airways for the overall marketing strategy
(Hollensen, 2015). Earlier there were four elements in the marketing mix which were required to
be considered but now they have increased to seven which are product, price, place, promotion ,
people, processes and physical evidence. With the change in the lifestyle and technological
changes the demand of the customers is also changing and in order to meet with the changing
requirements company will be required to make the changes in its marketing plan also. Some of
the trends include e commerce, outsourcing, etc. Due to the emergence of the social media there
is a change in the promotion activities as now marketers are using tools such as Facebook and
twitter for the promotion of their products (Moutinho, 2011). Consumers now search the
information and then take their decisions by analysing the obtained information.
1.2 organisations capabilities for planning its future marketing activities.
British airways PLC is one of the premium airlines and is providing satisfactory services
to the customers but with the conduction of the survey it was identified that there is a scope for
expansion which can be used by the company in increase its customer base (Peter and Donnelly,

2011). There are certain destinations where no airway facilities are available and company can
use this opportunity for its benefit. It will help the company to take the advantage of the
increasing competition in the market as it will start the services to seven new destinations by
which more customers will be attracted. In this both passenger and cargo services will be
provided and for this purpose company will ensure that its marketing plan is such that it will be
able to make the project a success and will help in increasing the revenues of BA.
1.3 Techniques for organisational auditing and external factors affecting marketing planning.
The technique that can be used for the conduction of audit of British airways are SWOT
Analysis, PESTLE or porter's five forces model (Chang, Park and Chaiy, 2010). By the
conduction of SWOT Analysis it will be possible for the company to identify its strengths and
those strengths will help the company in creating better opportunities for itself and with the help
of identification of its weaknesses it will be able to improve them and with that the possible
threats can be avoided. By following this the company will be able to improve its overall
performance.
There are various external factors that affect the marketing planning of the company. British
airways can use PEST analysis which will help it in examine various external factors (Nijssen
and Frambach, 2013). With the conduction of PEST analysis it will be able to know about
political, economical, social and technological factors and than can take measures in order to
reduce the impact that is caused due to them. with the changing environment these external
factors are very important to be considered while planning in relation to marketing and PEST
analysis will prove to be helpful in it.
1.4 audit of organisation and analysis of factors affecting marketing planning.
Audit of the British airways can be conducted by using SWOT Analysis which is done
below :
Strengths :
 Strong brand with high level of customers trust and recognition
 in order to maintain its aircraft fleet it has its own engineering branch
Weaknesses
 major revenue is earned from tha UK market which can be bad in the globalised economy
 under penetration in the developing countries
Opportunities

 with the growing demand it has scope for expansion in the market
 due to high pressure in the economy competitors are forced to leave the market
Threats
 they have to follow high government regulations
 increasing competition in the market in respect of low fares
Analysis of the external factors affecting planning :
Political Factors : there are various regulations in relation to the airlines industry which will
have high impact as they will develop stable environment.
Economical factors : there is a high impact on the spendings of the customers due to the
changes in the global economy.
Social factors : preferences of the customers has changed as now they focus on getting more
facilities at low cost so planning should include these aspects.
Technological factors : new facilities will be provided due to technological changes such as
online booking, payment facilities and online promotion.
M1
In the changing environment various factors are required to be considered for the
adoption of proper plan for marketing. For this purpose it will be required that proper research is
conducted and than on that basis British airways will take decision regarding its proposal of
expansion. Its capabilities with this respect are analysed and on that basis it can achieve its
objective.
D1
For the conduction of the audit of BA SWOT analysis has been used which has provided
the company with all relevant information on the basis of which further decisions can be taken.
Pest analysis is used to determine the external factors and there impact on the planning done by
company.
TASK 2
2.1 Main barriers to marketing planning.
It is important for every organisation to have a strong marketing planning but there are
various barriers that are required to be taken care of in the process of marketing planning
(O'Cass, Ngo and Siahtiri, 2012). The main barriers that are faced by British airways will include

that it will be required to follow the regulations specified by the government which acts as
barrier sometimes. Other than this company also faces problems due to employees as there are
many employees so it becomes difficult to satisfy all and due to this they will cause hindrances.
Various other barriers will include lack of resources such as efficient workers, lack of time and
lack of knowledge and skills due to which they will not be able to make an effective plan and
lastly company can face the technological barriers as technology is changing at a fast speed in
this world of globalisation.
2.2 Ways to overcome the barriers to marketing planning.
The planning will become successful when the company is able to overcome the various
barriers that are faced by it (Loya, 2011). Some of the ways to overcome these barriers are :
management support : with the involvement of the top management in the process of planning
that barrier can be removed as then the manager will have to complete the work on time as they
have to report to them.
Communication : the relation between the employee and employer can be improved by
involving employees in the process of planning and this can be done by communicating all the
relevant information to them so that they can feel that they are also part of planning.
Allocation of responsibility : there are various responsibilities involved in the process of
planning and it is not possible for a single person to fulfil all the responsibilities so they should
be divided among different individuals (Dief and Font, 2010). With this the efficiency of the
work will be increased and also every one will be motivated to complete their work and will
know what they have to achieve.
Contingency planning : a company is required to have an alternate plan which can be used in
case the plan that was originally adopted becomes impossible to achieve and cannot be used. As
now a days changes occur more frequently so the need to have a contingent plan has increased
even more.
M2
As there are some barriers in every organisation so it is required that those barriers are
identified so that measures can be taken in order to overcome those barriers. By doing so the
company will be able to make an effective plan in respect of marketing with the help of which
the objectives which have been set can be achieved.

D2
It is required that the identified barriers are removed. For this purpose British Airways
has conducted certain researches which have helped it to identify the barrier and also the way in
which they can be removed. Such as employees will be provided motivation to achieve the
targets that have been specified to them and by this way the barrier of employee relation can be
solved.
TASK 3
3.1 Market plan for a product or service.
Every company is required to make a marketing plan in which it will mention about the
objectives that are to be achieved, directions and finally the results (Wymer, 2011). Making a
plan will involve four steps which are described below :
1. goal setting : in this step the objective that is required to be achieved are to be
mentioned. In the given case for BA the aim is expansion by starting services for new
destinations.
2. Situational review : In this step the marketing audit is conducted by using various
techniques such as SWOT or PEST analysis. In the process of marketing audit all the
external and internal factors that will be affecting the marketing plan will be identified.
On the basis of the findings if any change is required than it will be made in the plan.
3. Strategy Formulation : for the formulation of marketing strategy it is required that the
objectives that are required to be achieved are stated (Russell-Bennett, Rundle-Thiele and
Kuhn, 2010). Than the resources that are available with the BA will be allocated in such a
manner that will help the company in getting maximum advantage and help in coping
with the available competition.
4. Monitoring and control : in this step focus will be given on budgets and
implementation. It should be considered that control is required in order to monitor the
activities that are undertaken. Only formulation of plan is not important it should be
noted that there are suitable measures to check the implementation also. Budgets will be
prepared and than the outcomes will be evaluated on the basis of it.

3.2 Marketing planning is important in strategic planning.
Marketing planning and strategic planning are closely related to each other and both are
required to be performed together so that the marketing objectives could be achieved (Reijonen,
2010). With the strategic planning British Airways will be able to achieve the expansion of its
customer base as with the new service it is starting more customers will be attracted and
company will be able to take the advantage of the growing competition and increase its revenue.
To achieve these objectives marketing planning will be required and it should be in relation to
the strategic planning. The objectives of the marketing will be to perform such marketing that
will be customer friendly as that will help in increasing the brand value of the company. The
marketing should be done in the target areas and to do this various means can be used such as
online marketing of the services that British Airways is going to start. By following both
marketing planning and strategic planning company will be able to achieve its objective of
expansion.
3.3 Techniques for new product development.
There are various stages that are required to be completed before the idea is finalised and
implemented. Various techniques are there that can be used for the development of new product.
Some of the techniques that can be used are :
 Blind steps : this technique is used when there is no idea about elements of marketing
mix and then also testing is conducted.
 Experimentation : this technique is used to check that whether the new destinations that
are chosen are viable or not. For this purpose BA will offer the tickets at discounted rates
to the customers and by doing so it will check the response of the customers. If the
response is good than plan can be implemented.
 Idea screening : in this technique screening of the idea will be performed and on the
basis of it all the unsuitable and unattractive ideas will be ignored or eliminated.
3.4 Recommendations for pricing policy, distribution, and communication mix.
In case of airlines business it is very important to adopt a proper pricing policy in order to
attract more customers (Morgan, 2012). Such policy should be adopted by which the price that
will be calculated will provide the customers with an additional advantage over and above what
other substitutes will provide. This is done as now a days customers compare the prices online
and than take their decision on that basis and by this company will be able to beat the

competitors. Distribution can be made easy by providing all the details in relation to booking and
other information to the customers in convenient manner. This can be done by providing services
such as paperless travel, online tickets, etc. In relation to communication mix it should be taken
into consideration that such mix should be used by which channel members will be minimized
and flow of information will be made smoother. As there will be less transfer of data so it will
make the location of the information generation centres easy for British Airways.
3.5 Dealing with factors affecting implementation of marketing plan.
There are various factors that affect the proper implementation of the marketing plan and
it is required by British airways to ensure that they have been dealt with in a proper way ( Fugate,
Mentzer and Stank, 2010). It should be ensured that allocation of resources should be done in
planned manner. For the purpose of implementation of plan it should b checked that individuals
having adequate skills should be appointed. To check that the set targets are met or not it will be
required that proper monitoring system should be there and if any deviations are found that
measures should be taken to remove those deviations and achieve the targets. Employees should
also be included in the implementation process so that it will be known to them that what is
needed to be performed by them.
M3
Pricing policy will be such that it will attract more customers. Services will be provided
by BA to make the distribution easier and this is done by providing online services.
Communication will be improved to make the relations between employees and management
better and all these will help the company in achieving expansion.
TASK 4
4.1 Influence of ethical issues on marketing planning.
There are various ethical issues and some of them are discussed below :
 market research : with the market research there are chances that undesirable results
will be obtained due to privacy invasion and stereotyping.
 Advertisements : sometimes some of the advertisements are such which while being in
interest of the most people are against some which means that some people are offended
by them and this is an unethical thing.

 Anti competitive practices : there are some practices which prove to be unethical as in
this fraud is committed with the customers. Such as sometimes when a customer comes
to book the ticket they are shown a different price and when they purchase it the price
that is charged is higher than the price that was told earlier. This type of practice is
known as bait and switch.
 Pricing ethics : in order to beat the competitors or make them leave the market
sometimes tickets are provided at very low price and this is very unethical.
4.2 Examples of how organisation should respond to ethical issues.
There are various ethical issues faced by a company and every company has its own way
to respond to them (Parrott Azam Roomi and Holliman, 2010). Some of the examples of it can
be that prices that are fixed by BA for the tickets should be according to the pricing policy and
should not be fixed with the ulterior motives. It should be taken care that the prices that are told
to the customers should be at all the times whether while providing the information or final
booking. Advertisements should be made by taking into consideration sentiments of all people
and should be such which will not offend anyone and they should be prepared in such manner
that meets the criteria of standard advertising.
4.3 Consumer ethics and its effect on marketing planning.
There are various such ethical misconduct the are undertaken by the consumers which
includes breach of confidentiality which involves that the personal information of the consumer
which is collected while providing them the services is shared to some third party by the
company. Another such practice can be performed by providing the consumers with the wrong
information which they use in making decisions. This will affect the plan as BA will lose the
loyalty of customers and also its brand value will decline.
D3
In relation to responding to ethical issues lateral thinking will be used as every person has
different perception and uses different approach to deal with the ethical misconduct. There are
various issues and to deal with there are equally more ideas which are used by individuals in
different manner.