Singapore Airlines: A Marketing Management Report (Fall 2023)

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Desklib provides past papers and solved assignments for students. This report analyzes Singapore Airlines' marketing strategies.
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Marketing Management
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Table of Contents
Introduction....................................................................................................................3
Report.............................................................................................................................4
Conclusion....................................................................................................................13
References....................................................................................................................14
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Introduction
This report involves the marketing perspective of the organization Singapore Airlines.
This organization shows different marketing strategies and plans for target customers.
The organization have different marketing personnel that are focused on improving
the service quality of the flights. They mainly focus on the comfort and luxurious
travel of their passengers in global travel. The organization have a well-known brand
image and goodwill in the market which involves customer loyalty and satisfaction.
The Singapore airline marketing activities are concerned to attract to provide the high-
quality service.
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Report
Issue 1
Introduction to the company
Singapore Airlines Limited is the main airlines in Singapore with the centre as the
Singapore Changi Airport. Airlines cover more than 60 destinations and it is
considered the world's best airlines in Asia. The airlines have won the top spots in the
first class services and airlines. The airline commenced their operations on 1 October
1972 with the CEO, Goh Choon Phong. The airlines have the 56% holding power
with the Temasek holding company and also by the Singapore government. The major
subsidiaries of the airline's company are Scoot, SilkAir, Vistara, SIA and Singapore
airlines cargo. The company have the slogan ‘A Great Way to Fly' as they believe in
keeping the service provided to the passengers to be the best. The mission of the
company is to provide the highest quality service to the passengers and maximum
returns to the shareholders and employees (Kotler, 2012).
The market orientation can be defined as the different concept of elements of the
marketing including the product concept, production concept, selling the concept,
marketing concept and societal marketing concepts. It also includes the
implementation of the marketing concept in the market with the products and
services. The marketing manager of the company aims at building a strong and
profitable relationship with the customers through the strategies and planning the
business. The Singapore airlines follow the societal marketing concept which beliefs
to determine the interests and demands of the market and delivering the desired
outcomes o the organization. It also includes to deliver the products and services
effectively and efficiently than the competitors and ultimately improving the
consumer and society's condition. The Singapore airlines focused on the company's
profitability, society's welfare and consumer interests. The airline industry may
provide the consumer wants and needs at the society's cost. The aim of the societal
concept of the marketing of Singapore Airlines is to provide the support and benefit of
being a good citizen. The Singapore Airlines provides subsidiaries including the SIA
Engineering Company which handle the maintenance and repair services business
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across different countries, Singapore Airlines Cargo, SilkAir and Scoot which
operates regional flights at low cost (Armstrong, 2012). The branding of the
Singapore airlines has been very consistent showcasing the Singapore girls as their
brand image. The Singapore girl is the symbol of the Asian values and hospitality
which includes caring, warm and elegance as their qualities. The Singapore girl is
visible as a flight attended and have gained immense popularity in the tourism
industry.
Singapore Airlines can be analysed with the help of the SWOT analysis to have their
strengths, weaknesses, opportunities and threats to the company. The company have
great financial, people and brand resources which help them to grow and survive in
the airline industry. The Singapore airlines use their resources to achieve the goals
and objectives of the company. The strengths of Singapore Airlines includes the
premium products and services which come under the established and popular brand
name of the Singapore airlines. It also has the youngest fleet of aircraft in the airline
industry. The Singapore airline is also popular for the supreme service and hospitality
including it as their mission. The company have also experienced profits year after
year from the operating year(Jeng, 2016).
The weaknesses of the Singapore airlines include the unbalanced portfolio of the
company in the airline industry. The price of the tickets is high as the aircraft are very
expensive to travel in. The pricing of the world's best airlines is high. The company
relies on international traffic.
The opportunities for the company are the exclusive training programs for cabin and
flight crew which can help them improve the service offered to the customers and
their satisfaction. The company have launched many affordable and economy
products that help in increasing their passengers and customer interest. This also helps
in boosting the competitiveness of the company. The company can also increase their
destination number to increase their returns and revenues. The company can also
improve the Changi's airport transfer limitations.
The threats of the company in the market are the rising cost of the fuel. The fuel cost
is the main reason for the increasing expenses of the company which increases the
fare of the airline tickets. The Labour and personnel of the company also require high
expenses and funds to be recruited and trained. The recruitment and selection of the
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airline personnel is a very costly process and requires high expenses. The increased
competitors in the airline industry and their affordable products are attracting the
people and gaining the strength. The company is facing extreme competition from
competitive products and services(Achroll and Kotler, 2014).
The main target of the company are the corporates, middle class and upper class of the
population. The customers of Singapore Airlines are different based on the type of the
aircraft as the flights of the company are very expensive and include different
expenditure. The services of the company are highly customer oriented and have a
large variety, this makes the services of the company costly. The cost effected flights
are opted by the low earning people and are comparatively less expensive. The flights
have different options for different customers. The customer services in the flight are
very well developed which provides the passengers with satisfactory journeys. The
customer always demands the quality services for the food and assistance. The
Singapore Airline company also tries to give the passengers the best services and
experience during the journey. The customer typical demands for affordable services
according to their demands and wants. The customer's needs and wants are also
affected by personal, social and cultural factors(Hutt and Speh, 2012).
The collaborators of the Singapore airlines include the caterers, employees and
suppliers which help them to deliver the products and services to the passengers. The
company recruits the best personnel from different dynamic environments and
backgrounds to provide the customers with the best service. The company provides
equal opportunities to all the employees and personnel of the company to show and
develop their full potential. The company focuses on improving the quality of the
customer services through the training programs that they provide to their employees.
The suppliers of the Singapore airlines are used for the cleaning and technology
manufacturing purposes. The suppliers of the company focus on the environment and
bio-degradable practices. The suppliers of the company believe in the sustainable
sources for the business. The paper suppliers of the company are also hired on
compliance with the environment and labour laws(Kumar and Steenkamp, 2013). The
management and handling services of the company also comply with the labour and
other laws. The caterers of the airlines are also important for the company as they
offer the best quality and hygienic food to the passengers of the flights. The company
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also maintains the waste management team that handles that the activities of the
company should not harm the environment and does not create extensive wastage.
The main competitors of the Singapore airlines are Air India, Emirates, Etihad
Airways, Malaysia Airways, Qatar Airways, Qantas Airways and British Airways.
These competitors are trying their hard to provide the same quality products and
services to the people and attract towards them the British Airways have also
introduced the similar products of the Singapore airlines which are affecting the
Singapore airlines position in the airline industry(Shaw, 2016). The other airways are
also adopting similar marketing strategies and business models which have provided
the growth of the competitors. The airline industry also deregulated which makes the
fare and services low-cost and affordable which attracts other threats in the industry.
The rapid growth and high revenues in the airline industry also increase the risk of the
new entrants in the business.
The environmental factors which affect the company are technological, political and
legal factors in the airline industry. The airline industry has many environmental,
labour and societal laws that should be followed by the company to have the success
in the market. The Singapore airline is supported by the government of Singapore
which eases their political environment and helps to follow the national policy
framework of the airline industry. The technological environment of the airline
industry has less rate of innovations but the companies always try to innovate their
products and services to improve their customer base. The company spends enough
amount on the research and development which help the company to provide better
quality products. The technological factors help the company to boost sales with
better quality and security of the customers. The legal environment of the airline
industry is dynamic and always bring their regulatory systems and frameworks for the
airline industry (Peattie and Belz, 2013). The legal factors also include the political
strategies and policies for regulating the customers. The environmental factors also
affect the Singapore airlines which make the company have the corporate social
responsibility plans and policies that should be followed by the company to have the
environment-friendly behaviour. This will help the company to provide the customer
with their needs without affecting the society and environment.
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The marketing strategy of Singapore airlines
Target market
Singapore Airlines have the upper class and corporate as their target market which
can give them the desired revenue for their goals. The upper class and corporate are
the people which want the best quality services and experience without thinking for
the price they pay for it. The high-income earning group is the target group of the
company which value comfort more than the cost. This enables the company to take
advantage of the high-income group to produce higher returns. The competitive
products have to struggle more to attract to the people with innovation and options.
The company have to keep updating and changing their services and products to
attract to the existing and prospect customers.
Value proposition
The Singapore airlines try to give the different services and products from their
competitors. These services and products should be different and innovative to make
the customer buy the services over the competitive products. The competitive strategy
of the company is strong as they concentrate on providing the best services to their
customer to ask for the customer loyalty and support. The quality of the customer
service of the Singapore airlines is very impressive and have attracted many people
from their introduction. They follow a different strategy for each section of the
customer. The products and services offered to the customer should be innovative and
can be differentiated from the other similar products. The Singapore airlines are
famous for their value proposition in the airline industry. They focus on the best
quality service in the flight which includes different food for the vegetarian and non-
vegetarian, smokers are met to seat together and similar strategies are used to provide
the passengers with best services.
Positioning strategy
The company positioning strategy focus on giving the premium services to the
demanding customers. The customer who prefers comfort and quality services which
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can be differentiated from the competitive products tends to buy the more promising
product(Leung, et, al., 2013). The Singapore airlines position their products and
services in the market with high values and promises which attracts the customers.
The Singapore airlines services have developed a different image and position in the
market and customers' mind. The positioning strategy of the Singapore airline
focusing on travelling the world by air with comfort and ease. The Singapore girls are
the famous brand icon which shows the best service and treatment to the passengers.
The company also try to make cultural and social strategy changes to attract
customers. The competitors of the company like Qatar and Emirates have also started
to take similar strategies for their marketing plans. The marketing plans of the
company always focus on giving the best treatment and experience to the customers
of the company.
The company choose marketing strategies and plans for the high profile target for the
market segments because they can provide high profits for the company. These
section of the society focuses on having a comfortable experience and journey to
every part of the world. The business person has to travel to a different section of the
world for the business purpose so they require the best service for their work. As the
world is increasing their reach and now everybody is connected, the airline industry is
focused on increasing their customer base.
Marketing mix of the Singapore airlines
The marketing mix of the Singapore airlines involves the 7Ps which show the
positioning of the products and services of the company in the market. The marketing
mix of the company develops the process of placing the right product at the right time
and at the right place with effective promotional methods to attract the customer. The
Singapore airlines have developed the marketing plan and mix for the target group of
the upper class and high-income people(Khan, 2014). The customers of the Singapore
airlines are attracted to the company products and services as the brand image and
popularity is high. The marketing mix of the company includes the following
elements:
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Product and services: The products and services of the Singapore airlines
mainly include the services of transportation to the people from one place to
another. The services of the Singapore airlines include different products that can
be food and beverages provided during the flight. The services of the company
can include proper safety and comfort for the passengers. The proper staff and
well-maintained services are the main features of the Singapore airlines. The
company should also maintain the proper departure, landing, better customer
services in-flight or on-ground to attract the customers. The marketing mix of the
company should also focus on reasonable pricing and consistency in the services.
Price: The prices of the products and services explain the value of the price paid
for them. The customer should have the maximum value for the money they
spend. The customers are also attracted to different strategies that are used by the
Singapore airline for their services(Kotler and Keller, 2012). The Singapore
airlines can use the price differentiation strategy in which the company can offer
different prices to a different class of the customers, this will help the Singapore
airlines to earn better returns. The pricing strategy of the company also includes
discounts, cash-less payments and other offers to attract the customer. Another
pricing strategy for the Singapore airlines can be a seasonal strategy which uses
the season for setting the prices. The peak season of the company involves
different prices for the customers and value-added services.
Place: The place is the element of the marketing mix which involves the right
place to offer the products and services to customers with ease and fast response.
The place can be virtual in case of the Singapore airlines as there are now digital
distribution channels that can be used for the bookings. The company should also
have proper departure and landing of the passengers which will help them to
attract other customers.
Promotion: The promotional element of the Singapore airlines include the
activities that are concerned with the promotion of the products and services of
the company. There are different methods that can be used by the company for
the promotion of company services and products like direct marketing,
advertising, internet marketing and public relations. The promotional methods
used for the company should focus on delivering the message and offers of the
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company. The company can also promote their services through different offers
on the foods and beverages during the flights. The airlines can also use the air
hostess for the promotional activity and events(Charoensettasilp and Wu, 2013).
People: The people of the marketing mix of the Singapore airlines refer to the
employees and personnel of the company which are an essential part of the
company to deliver the products and services properly to the consumers. The well
trained and educated staff of the company is the main reason which can attract the
customers. The company also develops and plan for the training and development
programs for the employees of the company including the cabin crew and other
employees. The brand girls of the company are proposed as caring, kind, and
peaceful which delivers the purpose of their company. The company should have
the people of the company which improves the customer satisfaction to the
maximum.
Process: the process of delivering the products and services of the company to
the customer is very important to maintain the sales of the company. The process
of delivering the services should be well executed to attract the customers. The
employees of the company should have a well maintained and interactive process
for customer satisfaction.
Physical evidence: The physical evidence of the company refers to the
environment where the services and products are offered to the customers. The
environment of the company should be clean and comfortable of the flight and
airport to have a good impression. It is the duty of the employees and cabin crew
to maintain the environment of the flight and ground.
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Recommendations for the marketing mix of the Singapore airlines.
The company should introduce new products and services for the customers that
create differentiation from the competitors. The target of the company should be
quality of the service than the price. The company should utilize their unused
resources and services in the company to improve customer expectations. The
promotional activities of the company should also improve their content and reach.
The Singapore airlines are the mark for the ‘luxury' which enhances the customer
interpretation and attracts for customer loyalty. The company can also improve their
food offers, discounts and pricing strategy to attract the customers(Mayer, 2012).
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