UGB266: British Airways Marketing Analysis and Recommendations Report

This report provides a comprehensive analysis of British Airways' marketing strategies and performance. It begins with an introduction to British Airways, outlining its history and scope, followed by an examination of the key issues it faces, including brand image issues, global economic challenges, and fluctuating fuel prices. The report then delves into the marketing strategies employed by British Airways, including product, price, place, and promotion, and assesses these through a SWOT analysis, highlighting the airline's strengths, weaknesses, opportunities, and threats. Furthermore, the report utilizes the BCG matrix to evaluate the strategic business units within British Airways, categorizing routes as stars, cash cows, question marks, and dogs. Based on this analysis, the report concludes with a set of recommendations aimed at improving service quality, addressing competitive pressures, and enhancing overall financial performance, with a focus on cost management and customer satisfaction.

BRITISH AIRWAYS

Contents
Introduction......................................................................................................................................3
Issues faced by British Airways......................................................................................................3
Marketing strategies.........................................................................................................................3
SWOT analysis of British Airways.................................................................................................4
Metrics of British Airways..............................................................................................................5
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
British Airways is one of the largest airline in UK that is based on fleet size. The airline was
established in 1974 by British government to control and manage two nationalized airline
companies named British European Airways and British overseas Airways Corporation. In
addition to scheduled services provided by British Airways, it is engaged in the operations of
international carriage of mail, freight and more ancillary services. British fly over more than 30
destinations and carry more than 33 million passengers (Airways, 2017). The report discusses the
strategic issues faced, marketing-mix, internal analysis, Marketing Metric in order to analyze the
current situation of British airways. The report also has used the tool “BCG matrix” to analyze
the marketing strategies. At last, the report has given a recommendation to the issues that will be
found through tools.
Issues faced by British Airways
British Airways has to face a filed suit from Branson Airways that had led to loss of brand image
and reputation. With difficulties faced by British Airways, overseas partners faced huge losses
such as Qantas, US Air, and TAT suffered a huge loss (Lange et al., 2015).
Global recession- Due to increasing recession at the global level, tourists are no more interested
to go for holiday. In the attempt to increase its customer base, it strived to provide good customer
experience to attain a same level of profit. British Airways focused on the groups of passengers
such as business people and holiday makers. Moreover, it has affected the fare of flights due to
competent market price and less fare decided by competitors with same facilities (Charter, 2017).
Fuel Price- Oil price has been increasing due to high demand. International civil aviation try to
cut down flight to reduce the use of fuel. Nevertheless, it is an environmental issue too. If price

touches at extreme high level, British Flight expects the fuel bill for the current year jumped by 1
billion that represents overall 35 percent of annual costs.
British Airways is facing a daunting challenge such as raising finance at the time of economic
crisis in debt market. Choosing right of workers is difficult to measure because the staff costs for
British Airways is high. Moreover, as compared to other companies, the quality of British
Airways do not match with the customers paying. This creates customer dissatisfaction that can
be improved by proper human capital management (Coller, Mills, and Mills, 2016).
To overcome the strategic issues, British Airways had taken a strategic initiative in 2012 that
intends to achieve the vision of becoming one of the leading global airline. The plan involves an
overall approach or 360 degree to overcome several issues such as issues related to environment,
British tradition that supports consumer friendly initiatives, and relationships with suppliers
(Airways, 2017).
Marketing strategies
With an aim to maintain position it always remained a leading Airways, it has been able to
maintain the high standards in relation to its services. Airline provides a 24*7 security services to
the customers and handle the situations when things become uncontrollable (Shanbhag, Dutt, and
Bagwe, 2016).
Product- The products and services offered by these airlines satisfies the needs and wants of the
customers. It has a fleet sized of 295 that provides a first-rate service to all the patrons. At first,
the flight ticket are offered at a very reasonable prices just to satisfy the wants of customers. The
Airways is connected to different busiest airports and provides an excellent scheduled fight to all
the destinations. It has also chosen other form of entertainment such as movie collection, access

to radio channels and various television programs. With an aim to cater the needs of section and
segmentation of customers, it is important to divide the services in mainly three diverse
executive classes (Mbaskool, 2018).
Price- British Airways have smartly managed its pricing policy in such a way that every person
or every class can avail them with services. It tried to maintain a pricing policy that is equal to
the value provided to the customers. The strategy is to decide how total amount spending can
influence the customers and decision makers. Customer buy a ticket at a very base price without
any surplus value addition and other benefits and even choose various services that he requires.
The economy class pricing strategy for the customers who want to access the tickets at low price.
A medium- value pricing strategy is for such customers that require and demand fringe benefits.
The Premium pricing strategy is preferred by those customers who travel to get high-class
benefits availed by the airlines (Dudovskiy, 2016).
Place- Place plays a distinctive part in market strategies. British Airways recognizes the truth and
always shown their dedication towards liaisons, partnering and mergers with most of essential
destinations in the world. As originated and establishment of UK, it carries its most regular
activities around the operational base. British Airways developed such infrastructure to conduct a
very safe and proper activities (Mbaskool, 2018). BA has collaborated with other airports
authorities to carry out the same business activities. They own their self warehouses and even
share warehouses in alliance with other companies (Williams, and Rhoades, 2017). The channel
of distribution is through call centers, travel agents, and online websites. This airways is most
popular airline to fly through other six continents of the globe nearly serving 160 destinations
(Shaw, 2016).

Promotion-Considerable creative and innovative actions has to be put to maintain promotional
strategies. In order to maintain and keep the communication lines open with customers, different
strategies have to be followed. The company has created a mobile application for special
customers to allow them to access reservations and get fringe benefits. British Airways provides
special flight tickets at a very reasonable prices for special occasions. Tickets in the name of
“Christmas gift vouchers” is one of the scheme where the customers can travel to various places
at a discounted prices (Moore, and Taylor, 2016).
SWOT analysis of British Airways
It is very necessary that strategic development is a reflection of British Airways strengths and
weaknesses that are related to competitors. Whereas, opportunities and threats are presented by
external environment.
Strengths
Alliances and collaborating
Brand Image
Financial stability
Weaknesses
Relation among the employees is worst in
history.
Poor financial position
Opportunities
SkyTrax quality system
Competitors have forced company to exit
Threats
Skies agreements
Global economic crisis
Low cost competition
Strengths- British airways is among the top airlines of the world. Moreover, it is largest airline
in UK in relates to fleet size. It is second largest airline in UK when as compared to passenger

carrying. British Airways have a strong brand image as one of the leading global premium
airline. Moreover, It was also voted as customer`s no.1 preferred brand in UK in 2014, 2015 and
2016 (Rahman, 2018).
Weaknesses- the weaknesses are related to reliability, trust aspect, laggards because of
innovation and change in employee management. Some analysts and researchers hold a preview
that British Airways that is over reliant on UK market. Almost, half of airline revenues are
derived from UK so somewhere it becomes dependent on UK. The staff of British Airways
started a fortnight strikes in July 2017 in UK. This is a result of ongoing and increasing bitter
dispute among the airlines and the mixed fleet crew (Rahman, 2018).
Opportunities- Emerging economies with improved infrastructure that demand offer airlines a
opportunity for expanding infrastructure. In 2017, British Airways launched new summer
holiday line routes such as Ibiza, Palma, Malaga, and Florence from Birmingham airports in UK.
Whereas, the airways are exploring more holiday routes (Ustaömer, Durmaz, and Lei, 2015).
Threats- competitors are mostly considered as a major threat. British Airways usually faces
powerful rivalry and competition in many routes. For example- Air India, Etihad Airways,
Qantas Airways, Singapore Airways and Qatar Airways were competitors of British Airways.
Rising costs of fuel and labor in UK are facing issues.
Metrics of British Airways
While preparing for the future strategies of British Airways, BCG matrix can be a viable to
analyze the business strength and attractiveness of market. The key findings from BCG matrix is
that company grow high in Asia pacific and Eastern Europe. A strategic implementation states
that service quality needs to be enhanced to get a competitive advantage. A share matrix known

as BCG matrix is an strategic tool that helps in recognizing and sharing resources in the portfolio
of brands as the airways need to determine that which segment is profitable. Moreover, it has
high potential to grow because it has low market share (Suksantilap, Leelasantitham, and
Glesner, 2017).
Stars
British Airways can be considered as stars because of European routes. The company has a
commanding 21.35% market share with a volume capacity of 11,427,425 and also among the top
five rated in Europe.
Cash cows
Ireland and UK routes are cash cow routes for British Airways. These routes are the most
successful routes in mature market and generate more profits when as compared to other routes.
The intercontinental routes to Canada and North America boost some more lucrative routes to
include most gainful route from London health row to New York where British airways
commands 38 % market share. Moreover, it is all ahead of British competitor “Virgin Atlantic”
with 24 %. In addition to this, when looking for an opportunity to add British Airways share with
the American Airlines and the combined share of two airlines of New York route that rises even
50 %.
Question mark
China route is positioned as question mark when its current growth rate is concerned. In the
developing market, the route has the potential to grow in the market as a star. British Airways
can invest more in the route as a solution to grow market shares (Thakur, and Workman, 2016).

Dogs
Boutique airline concept “open skies” is considered as British Airways dog since many years. Its
operations continue between Paris and Washington, Amsterdam and New York remained a
failure that lead to losses for British Airways. British Airways route of Africa can be marked as
dog due to its poor performance. British Airways had to close many flights, when it closed in
2015 due to country`s unprofitability and poor economy.
BCG matrix
Recommendations
By analyzing the external environmental issues and factors, it should focus on enhancing
technological, competition, and environmental issues. It is necessary to build defensive strategies
that can help to protect its market share. Other low cost airlines are biggest threat to British
airways that enables to move in low cost market that cannot be deemed as appropriate actions on
the basis of previous failed attempts. The quality of service need to be improved to attain a
competitive advantage. It is important to address the area for British Airways where the value is
being lost due to avoidance of continuous attacking competitor strategies. It is recommended that

decreasing the salaries of the staff can be a key factor to British`s durability. As per (CAA) civil
Aviation Authority cabin crew of the airways that is paid almost double as its competitors pay. A
standard salary for British Airways cabin crew includes allowances and bonuses for huge sum.
The equipment, physical facilities and appearances o person is associated with the services that
should be promoted (Lukovac et al., 2017). Rather paying unnecessary to its staff, company
should be more willing to help the customers to provide them with prompt services and establish
profit distributing. The personal have the knowledge and skillset that need to convey loyalty,
trust and confidence. As per the vision, British Airways should make sure that their customers
should fly environmental friendly and smoothly (Harrison, 2018). It is important to consider that
British Airways is charging high price as compared to other big airline company. British
Airways should be aware about various international politics such as fuel price fluctuation and
terrorist attack for Middle East risk politics.
Conclusion
British Airways should be very careful while preparing a global business strategy. Moreover, if
they consider the problems and decides to. The above report brings out the situational analysis of
the British Airways. As it remained as one of the leading aircraft in UK. The report has an in-
depth analysis of all the elements of marketing-mix. As a promotional strategies, it opt to
introduce discounted pricing on flight tickets in the occasional season. As a tool to analyses the
current position of British Airways, it has a brief discussion of BCG metrics.

References
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