Comparison of Market Segmentation and Targeting in African Airlines

This report provides an in-depth analysis of market segmentation and targeting strategies employed by African airline corporations, with a specific focus on Ethiopian Airlines, South African Airways, and Kenya Airways. The study utilizes a pragmatic research philosophy, descriptive research design, and a deductive research approach, relying on secondary data and qualitative data analysis. The findings reveal that Ethiopian Airlines primarily targets low-cost carrier service customers, while South African Airways, Kenya Airways, and others cater to economic or business class segments. The report highlights that Ethiopian Airlines emphasizes cost, whereas the others focus on quality to establish their unique position within the African airline industry and influence customer behavior. The success of Ethiopian Airlines underscores the effectiveness of its segmentation, targeting, and positioning strategies, leading to a competitive advantage in the African airline market. The report concludes with recommendations for personalized advertisements, targeting low-cost carrier segments, and a focus on cost to create a distinctive market image.

Running head: MARKET SEGMENTATION AND TARGETING
MARKET SEGMENTATION AND TARGETING: COMPARISONS OF SUCCESSFUL
MARKET AND CUSTOMER SEGMENTATION IN AFRICA
Name of the Student:
Name of the University:
Author’s Note:

1MARKET SEGMENTATION AND TARGETING
ABSTRACT
The purpose of this study is to undertake an analysis of customer segmentation and targeting
strategies used by the airline corporations in Africa by focusing on Ethiopian Airlines, South
African Airways and Kenya Airways. The researcher for conducting this analysis had taken the
help of the pragmatic research philosophy, descriptive research design, deductive research
approach, secondary data collection method and qualitative data analysis method. The results of
the study reveal the fact that the Ethiopian Airlines targets the customer segments which avails
the low-cost carrier services offered by it. On the other hand, it is seen that the South African
Airlines, Kenya Airlines and other airline corporations of Africa focus on the customer segments
which avail the economic or the business class services offered by them. In addition to these, it is
seen that Ethiopian Airlines focuses on the attribute of cost whereas South African Airlines,
Kenya Airlines and others focus on the attribute of quality for attaining a unique position within
the African airline industry and also for influencing the buying behavior of their customers.
However, the success attained by Ethiopian Airlines clearly reveals the effectiveness of the
segmentation, targeting and positioning strategies used by it in comparison to South African
Airlines, Kenya Airlines and others which in turn had enabled it to attain competitive advantage
within the African airline industry. The study concludes by recommending the usage of
personalized advertisements for influencing the customer segments, focus the customer segment
which avails the low-cost carrier services and focusing on the attribute of cost for attaining a
unique market image.

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ACKNOWLEDGEMENT
I would firstly like to thank my Professor for offering me the opportunity to complete this study
on the topic “Market Segmentation and Targeting: Comparisons of Successful Market and
Customer Segmentation in Africa”. Furthermore, I would also like to thank my Supervisor for
helping me during each of the stages of this study and whom I would not have been able to
complete this study.
Lastly, I would like to thank my friends and family members for their unwavering support and
encouragement.
Thank You
-----------------------------------------------------------
(Name of the Researcher)

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Table of Contents
Chapter 1: INTRODUCTION.........................................................................................................6
1.1 Introduction............................................................................................................................6
1.2 Background of the Study.......................................................................................................6
1.3 Problem Statement.................................................................................................................7
1.4 Research Aim.........................................................................................................................8
1.5 Research Objectives...............................................................................................................8
1.6 Research Questions................................................................................................................8
1.7 Structure of the Study............................................................................................................9
1.8 Summary..............................................................................................................................10
Chapter 2: LITERATURE REVIEW............................................................................................11
2.1 Introduction..........................................................................................................................11
2.2 Concept of Customer Segmentation....................................................................................11
2.3 Customer Targeting.............................................................................................................13
2.4 Concept of Market Positioning............................................................................................15
2.5 Impact of Customer Segmentation and Targeting and Positioning Strategy on the growth
of the corporations.....................................................................................................................16
2.6 Literature Review................................................................................................................16
2.7 Summary..............................................................................................................................17
Chapter 3: RESEARCH METHODOLOGY.................................................................................18

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3.1 Introduction..........................................................................................................................18
3.2 Research Philosophy............................................................................................................18
3.3 Research Approach..............................................................................................................18
3.4 Research Design..................................................................................................................19
3.5 Data Collection Method.......................................................................................................19
3.6 Data Analysis Method.........................................................................................................20
3.7 Limitations of Study............................................................................................................20
3.8 Summary..............................................................................................................................20
Chapter 4: FINDINGS AND DISCUSSION.................................................................................22
4.1 Introduction..........................................................................................................................22
4.2 Presentation of Findings......................................................................................................22
4.3 Discussion of the Findings...................................................................................................25
4.4 Summary..............................................................................................................................28
Chapter 5: CONCLUSION AND RECOMMENDATIONS........................................................30
5.1 Conclusion...........................................................................................................................30
5.2 Recommendations................................................................................................................30
5.3 Future Scope........................................................................................................................31
References......................................................................................................................................32

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Chapter 1: INTRODUCTION
1.1 Introduction
The researcher in this chapter had highlighted the research aim, problem statement,
objectives, research questions and the other important aspects on the basis of which the entire
study had been conducted. Furthermore, the researcher had also outlined the structure which that
had been followed for the completion of this study.
1.2 Background of the Study
Armstrong et al. (2018) are of the viewpoint that customer segmentation and targeting are
the two most important strategies on which the sales volume and thereby the profitability of the
corporations substantially depend. Adding to this, Matikiti, Roberts-Lombard and Mpinganjira
(2019) have noted that the corporations are required to target a particular segment of the entire
population for the sale of the products or the services offered by them. This can be explained on
the basis of the fact that the success or for that matter the growth of the corporations substantially
depends on the effectiveness with which they are being integrate the needs, requirements and the
demands of the customer segment within the products or services offered by them (Zaki Ahmed
& Rodríguez-Díaz, 2020). In addition to these, they also need to take the help of adequate
targeting strategies so as to adequately influence the attitude or for that matter the behavior of the
concerned customer segment while being able to create value for them (Gupta, Venkaiah &
Ammani, 2016). However, at the same time it needs to be said that despite the different benefits
offered by the effective usage of the processes of customer segmentation and targeting it is seen
that there are various corporations which even in the present times do not take the help of these
processes which in turn had adversely affected their sales volume, profitability and also growth

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as well (Sengur & Sengur, 2017). It is in this particular backdrop that the researcher will analyze
the customer segmentation and targeting strategies used by the corporations related to the airline
sector of Africa.
1.3 Problem Statement
According to the official report of Iata.org (2020), the airline industry is one of the main
pillars of the economy of Africa and for the year 2018 the revenue generated by it was more than
$80.8 billion which accounted for approximately 3.6% of the GDP of the concerned continent.
On the other hand, highlighting the importance of this particular industry within the continent of
Africa the report of Aviationbenefits.org (2020) stated that the airline industry offers
employment to more than 6.2 million people of Africa which in turn account for roughly around
1.8% of the entire employed people within Africa. In this relation, it needs to be said that
Ethiopian Airlines, South African Airways, Kenya Airways, TAAG Angola Airlines, Air
Seychelles and others are some of the most important airline companies operational within the
continent of Africa (Njeru, Cheruiyot & Maru, 2019).
However, as per Weforum.org (2020) the important issue arises since it is seen that the
Africans make up 12% of the entire world population however the Africans make up only 2.5%
of the total air passengers of the world. Furthermore, the different airline-corporations in Africa
are struggling to attain even the basic growth when the airline industries of the other continents
or for that matter the nations are booming presently (Njeru, 2019). As a matter of fact, it is seen
that whereas the “low-cost carriers are about one-quarter of all flights” in the other nations of the
world in Africa they contribute less than 10% of the total flights (Iata.org, 2020). In this relation,
it needs to be said that an important reason for the slow growth rate of the airline industry of
Africa can be attributed to the ineffective marketing strategies or for that matter the customer

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segmentation and targeting strategies which are being used by the different leading airline
corporations of the concerned continent (Parsa et al., 2018). It is this particular problem faced by
the airline sector of Africa that the research would upon.
1.4 Research Aim
The aim of this study is to undertake an analysis of customer segmentation and targeting
strategies used by the airline corporations in Africa by focusing on Ethiopian Airlines, South
African Airways and Kenya Airways.
1.5 Research Objectives
1. To identify the segmentation criteria used by the airline corporations of Africa in the
particular context of Ethiopian Airlines, South African Airways and Kenya Airways
2. To analyze the choices of target markets of the airline corporations of Africa in the
particular context of Ethiopian Airlines, South African Airways and Kenya Airways
3. To evaluate the positioning strategy used by the airline corporations of Africa in the
particular context of Ethiopian Airlines, South African Airways and Kenya Airways
4. To recommend ways through the airline corporations of Africa can improve the process
of customer segmentation used by them in the particular context of Ethiopian Airlines,
South African Airways and Kenya Airways
1.6 Research Questions
1. What is the segmentation criteria used by the airline corporations of Africa in the
particular context of Ethiopian Airlines, South African Airways and Kenya Airways?
2. What are the choices of target markets of the airline corporations of Africa in the
particular context of Ethiopian Airlines, South African Airways and Kenya Airways?

8MARKET SEGMENTATION AND TARGETING
3. What is the positioning strategy used by the airline corporations of Africa in the
particular context of Ethiopian Airlines, South African Airways and Kenya Airways?
4. What are the ways through the airline corporations of Africa can improve the process of
customer segmentation used by them in the particular context of Ethiopian Airlines,
South African Airways and Kenya Airways?
1.7 Structure of the Study
The structure that had been followed for the completion of this study is outlined by the
below given figure-
Figure 1: Structure of the Study
Source: (Created by the Author)

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1.8 Summary
To sum up, the above discussion offers an overview of the aim, objectives, problem
statement, research questions and the other aspects on the basis of which this particular study had
been completed. The next chapter of the study is “Literature Review” wherein the researcher had
undertaken a review of the past literature related to customer segmentation and targeting used
within the airlines industry.

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Chapter 2: LITERATURE REVIEW
2.1 Introduction
The researcher in this chapter of the study had undertaken a review of the past literature
related to the usage of customer segmentation and targeting within the business world.
Furthermore, the researcher had also highlighted the literature gap which exists related to the
research topic that had been selected for analysis in this study and also the manner in which the
study would cover the same.
2.2 Concept of Customer Segmentation
Winston and Weinstein (2016) are of the viewpoint that customer segmentation is the
process through which the business corporations divide their entire customer base or for that
matter their target market into smaller sections or segments on the basis of the common
characteristics that each of the members of the concerned segment display. Adding to this,
Riandarini et al. (2016) have noted that in the particular context of customer segmentation the
process is generally being undertaken by the corporations by taking into account factors like age,
sex, life style, marital status, employment status and other important factors. In this relation, it
needs to be said that the primary objective of the corporations behind undertaking the process of
customer segmentation is to modify their marketing strategies or marketing plans and also the
products or the services offered by them by taking into account the specific characteristics or for
that matter the attributes of the concerned segment (Kurtulmuşoğlu et al., 2018). Furthermore,
the corporations also have the opportunity to take the help of the communication channels that
the members of the selected segment and thereby advertise or promote the products or the
services offered by them through the usage of the concerned communication channel or medium

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(Wirtz & Lovelock, 2017). This while helping the corporations to focus on the most profitable
customers also helps them to improve their customer service by taking into consideration the
specific needs, demands and the requirements of the concerned customer segment. Thus, it can
be said that the effective usage of the process of customer segmentation while helping the
corporations to adequately influence the attitude or for that matter the buying behavior of the
customers had also enabled them to enhance their sales volume and thereby their profitability as
well.
As discussed by Wang, Lu and Cheng (2019), customer segmentation is an important
process which the different airline corporations are using presently for the purpose of modifying
their services and also the marketing strategies which are being used by them as well. Varella,
Frazão and Oliveira (2017) are of the viewpoint that the corporations related to the airline
industry over the years had formulated or for that matter designed the airline services offered by
them taking into account the needs or the requirements of their customer segments. For instance,
the economic factor or the lifestyle is an important one in this relation which had been used by
the airline corporation for designing different services like low-cost carriers, economy class
services, business class services and others (De Villiers, Tipgomut & Franklin, 2019).
Furthermore, the business class services offered by the airline corporations are especially
designed for the white collar workers or the individuals undertake work trips and thereby the
same are being sponsored by the corporations that they work for (Leung, Yen & Lohmann,
2017). On the other hand, the economy services offered by the airline corporations are being
designed for the tourists and others from the working class background or the middle class
background who occasionally had to travel for entertainment purposes, tourism purposes and
others (Chen, Tu & Wang, 2016). The low-cost carrier services are being designed by the

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corporations for individuals from the lower middle class background and do not have adequate
amount of money to opt for the business class or the economy class services offered by them
(Camilleri, 2018). Lastly, the corporations related to the airline industry are presently also
offering private jet services for the individuals from the affluent families wherein they get to
travel alone or with the people they like (Smit, Roberts-Lombard & Mpinganjira, 2018). In the
light of these aspects, it can be said that unlike the effective usage of the process of customer
segmentation had helped the corporations related to the airline industry to categorize the services
offered by them as per the characteristics of the different customer segments that they focus upon
and also according to their needs, demands and requirements as well.
2.3 Customer Targeting
Blankson, Ketron and Darmoe (2017) are of the viewpoint that customer targeting is the
process through which the business corporations identify the customer segments that they need
to focus upon and also direct their marketing activities towards the same for the enhancement of
their sales volume and thereby their profitability. Adding to this, Chiu, Liu and Tu (2016) have
noted that for the effective usage of the process of customer targeting the corporations are
required to firstly have a specific target market or for that matter a customer segment on the basis
of the nature or the kind of products or services that they offer. This in important since not only
the customers of a particular corporation are suitable for the plethora of products or services
which are being offered by them and thus it becomes important for the corporations to select the
idea customers or customer segments whose buying behavior or attitude they need to influence
through marketing or promotional advertisements (Rahim, 2016). In this relation, it needs to be
said that there are various factors like cost as well as the type of media which needs to be used
for targeting the customers, merchandising, the kind of offers which needs to be made, past

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customer performance of the customer segment that had been selected and others (Tzvetkova,
2018). In the light of these aspects, it can be said that the primary objective of the different
corporations behind taking the help of the process of customer targeting is to select the most
suitable customer segment for directing their marketing campaigns among the plethora of
customer segments that they focus upon for the purpose of enhancing the sales volume of certain
products or services offered by them.
According to Njoya (2016), the process of customer targeting becomes especially
important from the perspective of the airline industry because of the wide range of air transport
services which are being offered by the concerned industry. Adding to this, Osei et al. (2019)
noted that the airline corporations use customer targeting in conjunction with the process of
customer segmentation so as to improve the effectiveness or for that matter the efficiency of the
marketing strategies that are being used by them. For instance, the airline corporations target the
affluent customers for the private jet services offered by them, the businessmen for the business
class services, the tourists or the people from the middleclass background for the economy
services and the people from the lower middleclass background with relatively lower amount of
money for the low-cost carrier services offered by them (Sheth, 2017). This segregation of
customer segments for the different services offered by the airline corporations had enabled them
to direct their resources as well as their marketing activities for influencing the attitude or for that
matter the buying behavior displayed by these customers related to these customers segments
(Matikiti, Roberts-Lombard & Mpinganjira, 2018). The resultant effect of this is that the airline
corporations have been able to substantially enhance their sales volume because of this which in
turn had positively affected their profitability as well as growth.

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2.4 Concept of Market Positioning
Al-Kwifi, Frankwick and Ahmed (2019) are of the viewpoint that positioning refers to
the place that a particular product or service offered by a corporation occupies in the mind of the
customers and also the manner in which it is being distinguished from similar products or
services offered by the other corporations. Adding to this, Matikiti, Mpinganjira and Roberts-
Lombard (2019) have noted that in simple words marketing positioning can be defined as the
ability or for that matter the capability of the corporations to influence the perception of their
customers regarding the products or the services offered by them. In this regard, it needs to be
said that Bowman’s matrix indicates that the corporations for the purpose of attaining a unique
market position related to the products or the services offered by them need to focus either on the
attribute of cost or on the attribute of quality (Seetanah et al., 2019). Furthermore, there are other
important attributes like the value proposition of the products or the services, competitors, the
manner in which the products or the services are being used by the corporations and others
(Pirie, 2017). The corporations have the opportunity to attain a unique positioning in the market
and thereby improve the perception of the products or the services offered by them among the
customers by effectively focusing on these attributes (Jarach, 2017). In the particular context of
the airline industry, it is seen that the majority of the corporations related to the same over the
years had focused on the aspect of quality rather than cost and this in turn had enabled them to
attain a unique position within the market and also among the customers as well (Amankwah-
Amoah, Boso & Debrah, 2018).

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2.5 Impact of Customer Segmentation and Targeting and Positioning Strategy on the
growth of the corporations
According to Sandada and Matibiri (2016), customer segmentation, targeting and market
positioning had become an integral part of the marketing strategies used by the corporations
related to the airline industry and the effective usage of these processes had substantially
improved the effectiveness or the efficiency of the marketing strategies used by the corporations.
Adding to this, Chiu, Liu and Tu (2016) have noted that the adequate usage of segmentation,
targeting and positioning had enabled the airline corporations to focus effectively on the
customer segments which are suitable for the services offered by them. This in turn had helped
them to influence the attitude as well as the buying behavior of the different customer segments
on which they focus upon and thereby helped them to enhance their sales volume (Bieger, 2015).
In this relation, it needs to be said that the aspect of enhancement of sales volume is important
since while helping the airline corporations to enhance their profitability as well as their growth
rate it had also helped them to acquire competitive advantage within the airline sector as well
(De Villiers, Tipgomut & Franklin, 2019). In the light of these aspects, it can be said that the
usage of the processes of segmentation, targeting and positioning had greatly contributed
towards the success attained by the different corporations related to the airline sector in the
recent years.
2.6 Literature Review
The researcher while searching for peer-reviewed articles and textbooks on Google
Scholar related to the process of customer segmentation and targeting followed within the airline
industry found that a substantial amount of research work had already been done on the same. As
a matter of fact, Wang, Lu and Cheng (2019) have noted that customer segmentation and

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targeting are the two important marketing processes that the corporations related to the airline
industry are required to take into account to enhance their sales volume, profitability and also
their long-term growth as well. Furthermore, the researcher was also being able to numerous
peer-reviewed articles which dealt with the present condition of the airline industry of Africa
however there are very few articles which dwell on the segmentation and targeting processes
which are being followed by the airline corporations within the nation of Africa. This is the
precise literature gap that the researcher intends to cover through this study. More importantly,
the researcher is hoping this research work will serve as a framework for the future researchers
for conducting research on similar topics or some other related topics.
2.7 Summary
To sum up, the researcher in the above discussion had undertaken a review of the
theoretical concepts highlighted in the past literature related to customer segmentation and
targeting within the airline industry. This discussion is likely to facilitate a better understanding
of the results which would be obtained from the analysis of the secondary data that had been
collected for this study. The next chapter of the study is “Research Methodology” wherein the
researcher had provided an outline of the research methodological framework that had been used
for the completion of this study.

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Chapter 3: RESEARCH METHODOLOGY
3.1 Introduction
The researcher in this chapter of the study had highlighted the different components of
the research methodological framework that had been used for the completion of this study.
Furthermore, the researcher had also offered adequate justification or for that matter rationale for
the selection of each of the components of the research methodological framework within this
study.
3.2 Research Philosophy
The researcher rather than the positivism research philosophy or the interpretivism
research philosophy had used the pragmatic research philosophy. According to Walliman (2017),
the pragmatic research philosophy articulates the idea that the usage of a single viewpoint or
perspective cannot help the researchers to effectively analyze the research topic that had been
selected by them. Furthermore, the researchers in order to effectively analyze the research topic
selected by them and also for the purpose of enhancing the quality of their study need to analyze
their research topics from multiple angles through the usage of multiple viewpoints or
perspectives (Gray, 2019). Thus, the researcher is hoping that through the usage of the pragmatic
research philosophy the researcher would be able to analyze the customer segmentation and
targeting strategies used by the airline corporations in Africa through the usage of multiple
perspectives or viewpoints and thereby enhance the quality of the study.
3.3 Research Approach
The researcher rather than the usage of the inductive research approach had used the
deductive research approach. Bell, Bryman and Harley (2019) are of the viewpoint that the

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deductive research approach requires the researchers to take the help of different theoretical
models, frameworks, observations and others for testing the validity of the assumptions or for
that matter the hypotheses used by them in the study. Furthermore, this also helps the researchers
to substantially enhance the quality of their study by improving the reliability, validity and the
accuracy of the same. It is the light of these attributes of the deductive research approach that the
researcher had taken the help of this research approach for the completion of this study.
3.4 Research Design
The researcher rather than the exploratory research design or the explanatory research
design had taken the help of the descriptive research design. Ghauri, Grønhaug and Strange
(2020) are of the viewpoint that the usage of the descriptive research design helps the researchers
to correlate or for that matter to link the findings that they have obtained from the analysis of the
primary or the secondary data collected by them with the objectives of the study. This in turn
helps the researchers to enhance the coherence and thereby the quality of their study. Thus, the
researcher is hoping that through the usage of this particular research design the researcher
would be able to enhance the quality of the study by increasing its coherence through the linking
of the results of the study with the objectives of the same.
3.5 Data Collection Method
The researcher rather than the usage of the primary data collection method had used the
secondary data collection method. As discussed by Sekaran and Bougie (2016), the secondary
data collection method id the process through which the researchers are being able to information
from secondary sources like peer-reviewed articles, credible newspaper articles, textbooks and
others. Adding to this, Quinlan et al. (2019) have noted that the secondary sources of information
are highly reliable and accuracy since the accuracy or the reliability of the same had already been

19MARKET SEGMENTATION AND TARGETING
tested. It is in the light of these aspects that the researcher had taken the help of the secondary
data collection method and thereby collected information from the annual reports, newspaper
articles, peer-reviewed articles and others.
3.6 Data Analysis Method
Delen and Zolbanin (2018) are of the viewpoint that the data analysis method which is
being used by the researchers is substantially reliant on the data collection method which is being
used by them. For instance, the researchers using non-numerical or non-statistical data are
required to take the help of the qualitative data analysis method whereas the researchers using
numerical or statistical data are required to take the help of the quantitative data analysis method
(Sekaran & Bougie, 2016). The researcher in the particular context of this study had taken the
help of the qualitative data analysis method since secondary data collection method had been
used for the completion of this study.
3.7 Limitations of Study
The researcher because of resource and time constraints had relied primarily on
secondary data for the completion of the study and no primary data had been used. Furthermore,
the research topic that had been selected by the researcher is very broad in nature and the quality
of the study could have been improved significantly had the researcher used a narrow topic.
These in short are the two most important limitations of the study which in turn had substantially
narrowed down the scope as well as the quality of the study.
3.8 Summary
To sum up, the researcher in the above discussion had presented an overview of the
research methodological framework that had been used in this study and also provided

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justifications for the same. The next chapter of the study is “Findings and Discussion” wherein
the researcher had presented the results obtained from the analysis of the secondary data that had
been collected for the completion of this study and also undertaken a critical discussion of the
same in the context of the theoretical arguments presented in the Literature Review.

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Chapter 4: FINDINGS AND DISCUSSION
4.1 Introduction
This chapter of the study presents the results which had been obtained from the analysis
of the secondary data that was collected for the completion of this study. Furthermore, the
researcher had also undertaken a discussion of the findings in the particular context of the
theoretical concepts which were articulated in the literature review section of this paper.
4.2 Presentation of Findings
According to Pearce (2020), the African airline industry within a very short span of time
had been able to attain a substantial amount of success which becomes apparent from the fact
that for the year 2018 the revenue generated by the concerned industry of Africa was more than
$80.8 billion which in turn accounted for around 3.6% of the total GDP of Africa. Furthermore,
the article of Thelwell (2020) states that the effective marketing strategies used by the
corporations related to the airline industry of Africa had directly contributed towards the
exponential growth attained by the airline industry of Africa. For instance, Ethiopian Airlines,
the largest airline corporation of the nation of Africa is an important example in this regard
(Gulf-times.com, 2020). The concerned corporation established in 1946 had formed an alliance
with Star Alliance and thereby presently had 125 fleets for offering both domestic and
international airline services to its customers not only from Africa but also from the different
parts of the world as well (Ethiopianairlines.com, 2020). As a matter of fact, it is seen that
realizing the high profitability of the low-carrier airline services the concerned corporation is
presently targeting the customer segment which comprises of individuals from the lower
middleclass background who like to travel by air (Bbc.com, 2020). Furthermore, the selection of

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this particular customer segment also becomes justified from the fact that the African continent is
not as economically stable as the other continents of the world and thus it is seen that by using
the cost leadership strategy Ethiopian Airlines had been able to effectively target this particular
segment of the African population (Afraa.org, 2020).
More importantly, cost effectiveness, high quality services, timely services, safe and
secure services and others are some of the most important requirements of this particular
customer segment and the corporation Ethiopian Airlines focuses specifically on these attributes
for influencing the attitude or the buying behavior of the concerned customer segment (Gulf-
times.com, 2020). Apart from this particular segment, the corporation also focuses on the
customer segment which comprises of individuals from middleclass background who like to
travel in the economy class for business, tourism, general travel and other purposes (Bbc.com,
2020). The resultant effect of this is that the corporation is increasingly taking the help of
different marketing campaigns or for that matter advertisement campaigns for influencing the
behavior of the concerned customer segments. As a matter of fact, the concerned corporation
actively takes the help of social media marketing, e-newsletters, promotional emails and others
for targeting the individuals related to these customer segments (Thelwell, 2020). In this
connection, it needs to be said that the customer segmentation and targeting strategies which are
being used by Ethiopian Airlines is drastically different from the ones which are being used by
South African Airways, Kenya Airways and the other airline corporations of Africa.
South African Airways mainly focuses on the businessmen or for that matter the
individuals who avail the airline services for the business travels and others (Flysaa.com, 2020).
The primary idea of South African Airlines behind focusing on this particular segment of the
African population is the fact that the number of business corporations and thereby the business

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related travels had increased exponentially in Africa and thus by focusing on this particular
customer segment the corporation intends to capitalize on the growth attained by the African
business world (Iol.co.za, 2020). Furthermore, it is seen that the concerned corporation takes the
help of digital platforms, e-newsletters, promotional emails and others for targeting the
customers related to this particular segment. Lastly, the Kenya Airlines mainly offers business
class services and also economy services to its customers and it is seen that the majority of the
customers who take the help of the services offered by the concerned corporation are domestic as
well as international tourists or the businessmen (Kenyaairways.com, 2020). The resultant effect
of this is that the concerned corporation through its digital marketing strategies mainly targets the
businessmen and the customers related to the middleclass background who likes to use their
services for undertaking tourism, visiting different places and others.
However, the focus of South African Airlines, Kenya Airlines and the other major airline
corporations of Africa apart from the Ethiopian Airlines on the businessmen and the middleclass
customer who avail the economy or the business class services had adversely affected the growth
rate of the African airline industry or for that matter the number of air passenger that the same
gets (Un.org, 2020). This can be explained on the basis of the fact that the passengers related to
the low-cost carrier services which are intended for the people from lower middleclass
background because of their cost effectiveness comprise more than one-third of the total
passengers in the airline sector of the other nations of the world whereas in the continent of
Africa they are less than 10% (Njeru, 2019). The resultant effect of this is that despite having
more than 12% of the total population of the world the Africans make up only 2.5% of the air
passengers of the world (Weforum.org, 2020).

24MARKET SEGMENTATION AND TARGETING
The difference between Ethiopian Airlines and the other major airline corporations of
Africa also becomes apparent when the positioning strategies used by them are being taken into
account. For instance, Ethiopian Airlines focuses on the attribute of cost for the purpose of
attaining a unique position within the airline industry of Africa since the low-cost carrier services
offered by the concerned corporation are the major source of revenue for the concerned
corporation (Ethiopianairlines.com, 2020). The usage of this particular positioning strategy had
enabled the corporation to effectively influence the buying behavior or for that matter the attitude
of its target market which in turn had enabled it to attain competitive advantage within the
African airline industry (Bbc.com, 2020). On the other hand, in the particular context of the
airline corporations South African Airlines, Kenya Airlines and others it is seen that these
corporations focus on the attribute of quality for the purpose of gaining a unique market position
within the airline sector of the continent of Africa (Afraa.org, 2020). In this relation, it needs to
be said that the ardent focus of these corporations on the attribute of quality had substantially
enhanced the cost charged by them because of which it become very difficult for the different
people of Africa to avail the airline services offered by them since they are expensive in nature
(Pearce, 2020). Thus, it can be said that although the focus of the airline corporations of Africa
on the aspect of quality had enabled them to gain a unique market position yet it had not enabled
them to influence the attitude or for that matter the buying behavior of their customers. This
while contributing towards the ineffective growth attained by them had also directly contributed
towards the comparatively lower growth rate of the African airline industry as well.
4.3 Discussion of the Findings
The research work of Winston and Weinstein (2016) conducted in the critical success
factors of the corporations related to the airline industry reveal the fact that the customer

25MARKET SEGMENTATION AND TARGETING
segmentation and targeting strategies which are being used by the corporations are the pivotal
factors which affect the success or the failure of the corporations. On the other hand, the research
work of Riandarini et al. (2016) reveals the fact that the airline corporations are required to take
into consideration age, sex, life style, marital status, employment status and other important
factors for selecting suitable customer segments on which they would focus. In the particular
context of the airline industry of Africa, it is seen that the Ethiopian Airlines takes into accounts
these factors for the purpose of focusing on the specific segments of the African population as
regards the airlines services which are being offered by it (Thelwell, 2020). As a matter of fact,
taking into account the lifestyle, economic status and other important factors the corporation
focuses on the customers related to the lower middleclass background who like to travel using air
transportation services for the low-cost carrier services offered by it (Bbc.com, 2020).
Furthermore, the business class services offered by the concerned corporation had been designed
taking into account the booming business sector of Africa wherein it is seen that because of the
extensive growth of the business sector the working class individuals are increasingly
undertaking air transportation for work related purposes (Afraa.org, 2020).
However, at the same time it is seen that the other airline corporations of Africa like
South African Airlines, Kenya Airlines and others do not ardently take into account the different
important factors related to customer segmentation for the selection of the most suitable
customer segments. For instance, South African Airways mainly focuses on the businessmen
who avail the airline services for the business travels and others (Flysaa.com, 2020). On the other
hand, Kenya Airlines focuses on the businessmen and the middleclass individuals for the
business class services and also economy services offered by it (Kenyaairways.com, 2020). In
this relation, it needs to be the selection of these ineffective customer segments had substantially

26MARKET SEGMENTATION AND TARGETING
slowed down the growth rate of these airline corporations and also of the entire African airlines
industry as well (Un.org, 2020). As a matter of fact, the research work of Njeru (2019) clearly
reveals the fact that the low-cost carrier passengers account for less than 10% of the total
passengers in Africa whereas in the other continents they account for more than one-third of the
total passengers. This as a matter of fact has important implications for the African airline
corporations since they are required to focus on the customer segment which avails the low-cost
carrier services rather than the ones who avail economy or business class services. The
importance of focusing on this particular customer segment becomes apparent from the success
that Ethiopian Airlines and the other airline corporations in the other nations had been able to
attain over the years.
Chiu, Liu and Tu (2016) are of the viewpoint that for the effective usage of the process of
customer targeting the corporations are required to firstly have a specific target market or for that
matter a customer segment on the basis of the nature or the kind of products or services that they
offer. On the other hand, Osei et al. (2019) noted that the airline corporations need to use
customer targeting in conjunction with the process of customer segmentation so as to improve
the effectiveness or for that matter the efficiency of the marketing strategies that are being used
by them. In the particular context of the African airlines industry it is seen that all the three
airline corporations under discussion here take the help of digital media platforms, e-newsletter,
promotional emails, social media websites and others for targeting the customer segments that
they focus upon. The primary objective of these corporations behind the usage of digital media
platforms is to direct their marketing advertisements at the customer segments selected by them
so as to influence their attitude or for that matter their buying behavior in the best possible
manner. This is important since it would help them to enhance their sales volume and thereby

27MARKET SEGMENTATION AND TARGETING
increase their profitability and even facilitate the growth or the development of their corporation.
This is even being supported by the research work Matikiti, Roberts-Lombard and Mpinganjira
(2018) which indicates that the segregation of customer segments and also using adequate
measures for targeting them for the different services offered by the airline corporations had
enabled them to direct their resources as well as their marketing activities for influencing the
attitude or for that matter the buying behavior displayed by these customers related to these
customers segments. This has important implications for the African airlines industry since in
order to enhance their sales volume and thereby increase their profitability the African airline
corporations need to devote more resources for effectively targeting the customer segments in
which they focus.
According to Al-Kwifi, Frankwick and Ahmed (2019), the effective usage of the market
positioning strategy helps the airline corporations to influence the perception of their customers
regarding the products or the services offered by them. In the particular context of the African
airline industry, it is seen that Ethiopian Airlines focuses on the attribute of cost for the purpose
of gaining a unique position within the airline industry of Africa (Bbc.com, 2020). On the other
hand, it is seen that South African Airlines, Kenya Airlines and the other important airline
corporations of Africa focus on the attribute of quality for the purpose of acquiring a unique
position within the airline sector of Africa (Afraa.org, 2020). This even becomes apparent from
the research work of Seetanah et al. (2019) which clearly indicates that the corporations for the
purpose of attaining a unique market position related to the products or the services offered by
them need to focus either on the attribute of cost or on the attribute of quality.

28MARKET SEGMENTATION AND TARGETING
4.4 Summary
To sum up, the researcher in the above discussion had presented the results obtained from
the analysis of the secondary data which was collected for the completion of the study. More
importantly, the researcher had also undertaken a critical discussion of the same in the light of
the arguments which were presented in the literature review section of this study.

29MARKET SEGMENTATION AND TARGETING
Chapter 5: CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
The above discussion makes it apparent that customer segmentation, targeting and
positioning are three most important processes which the airline corporations are required to use
for effectively influencing the attitude or the buying behavior of their customers. For instance, in
the particular context of the airline industry of Africa it is seen that Ethiopian Airlines had been
able to attain a substantial amount of success by targeting the customer segment which avails the
low-cost carrier services rather than focusing on the customer segments that avail the economy
or the business class services. As a matter of fact, it is seen that the other airline corporations of
Africa like South African Airlines, Kenya Airlines and others focus on the customer segments
which have shown a high propensity for economy or business class services and because of the
low number of customers related to these two categories the business growth of these
corporations had been adversely affected. In addition to these, the study also reveals the fact that
the corporations need to take the help of adequate positioning strategies which will enable the
corporation to attain a unique marketing position either in terms of cost or in terms of quality.
Ethiopian Airlines focuses on the attribute of cost wherein South African Airlines and Kenya
Airlines focuses on the attribute of quality for attaining a unique market position within the
African airline industry and thereby influence their buying behavior.
5.2 Recommendations
 The different airline corporations of Africa like Ethiopian Airlines, South African
Airlines, Kenya Airlines and others need to focus on the customer segments which avail
the low-cost carrier services. This is important since the airline industries of the other

30MARKET SEGMENTATION AND TARGETING
nations have been able to attain a substantial amount of success by focusing on the same
and thus it is likely that the African airline corporations would also be able to attain
success by focusing on this particular customer segment.
 The African airline corporations need to take the help of digital marketing strategies for
targeting the customer segments on which they focus upon. Furthermore, rather than
taking the help of generic advertisements or campaigns the corporations are likely to get
results if they take the help of personalized advertisement campaigns for influencing the
buying behavior of its target audience.
 In the particular context of the nation it is seen that the majority of the people because of
the impoverished condition of the economy of the concerned continent do not have the
required money for availing the expensive high quality services offered by the airline
corporations. Thus, it becomes important for the airline corporations to focus on the
attribute of cost for the purpose of acquiring a unique market position and also for
influencing the buying behavior of its customers. Furthermore, the success attained by
Ethiopian Airlines by focusing on this attribute also indicates the importance of this from
the particular context of the African airline industry.
5.3 Future Scope
The researcher in future intends to enhance the scope of the study by taking the primary
data which would be collected through the usage of the tools of surveys and interviews for
enhancing the quality or for that matter the scope of the study. Furthermore, the researcher in
future intends to narrow down the scope of the study by focusing specifically on one particular
customer segment and one service offered by the airline industry of Africa.

31MARKET SEGMENTATION AND TARGETING
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