Segmentation analysis of the Singapore Airlines

Introduction of Segmentation analysis of the Singapore Airlines

The market segmentation is referred as the distribution and partition of the market in to various distinctive classes, groups and segments in which the separate products are required for the marketing mixes. The major aim of this section is to identify the strategies of the marketing as well as realistic objectives of the marketing mixes by understanding the buyer behaviour and customer trends. There are the large number of the potential actual customers on which the market is contained. The procedure of distributing and dividing the market in to various segments or groups that are relies upon the characteristics, needs and behaviours of the buyer. This process is called segmentation in the language of the marketing (Marcelo Royo Vela, 2010).

By applying this strategy the service level expectations can raised from its customer and it can be used to process the Singapore airlines excellent delivery of services process according to the board translate customers and its payments into value as well as utility by providing the accurate accommodation to the customers by ensuring their comfort security for its valued customers. In order to meet the rising expectations of their valued customers the Singapore airlines required to be increase its processes (Teichert, 2008).

The groups of the customers can be identify by the segmentation which is particularly relevant to the  Singapore Airlines in order to making sure the services and products that serve according to the needs  of the customers along with continuous globalization that is joined with blooming tourism and growing international trades. The paces of life has quickened because the work has become smaller. In this era, the time efficient transportation has becomes in huge demand, this can be easier and quicker because the air travel business comes and playing its central role in order to fulfil its demanding needs for traveling around the globe or across the world.

 The Singapore airline has tried to attempting for the segments their market usually by adopting the bases of demographic, psychographic and behavioural segmentation. The whole air market can be divided in to segments by considering the filters of the demographics, psychographics and behavioural segmentation. Particularly, the level of the loyalty status, lifestyle, and socio economic status is concerned with segments of whole air markets  (Bruning, 2016).

Traditional approach for 2Segmentation analysis of the Singapore Airlines

The traditional approach has been used by Singapore airlines that is adopted by the legacy carriers for the process of the segmentation. SIA focuses on the price sensitive leisure travellers and business travellers. The Singapore airlines business paradigm has clearly differentiated both of these two segments by serving according to theirs heterogeneous needs and requirements. They are focusing on the additional segments according to the consumer loyalty as well for expanding their revenue and penetrating their existing market (Singh, 2015).

Geographic segmentation of Segmentation analysis of the Singapore Airlines

The customers of the Singapore airlines spread around the globe and they are located globally along with the various needs and demands. Hence, the firm has started to exploit this by offering the services to the major cities and various routes. The evidence that is provided by the Singapore airlines are engaged in operating its flights about 90 destinations in more than 39 countries over 5 continents. Therefore, its string presence is still the region of the Southeast Asia.

Demographic segment

According to this segments the Singapore Airlines are works according to the factual characteristics of the customers for instance; income, age, occupation, gender, lifecycle, family, education and social culture by which the purchasing decisions can be influenced in good ways. Singapore Airlines will be segments their customer demographically by considering their choice of the class of services. For example the first as well as suit class passengers will be prefer to travel for business purposes and mostly it includes the male between 25 to 45 years old. In the business class the passengers are split evenly according to their requirements as for leisure and business. Most of the male with the average age of the 32 years old will be focused for the economy class and the passengers of the economy class are much broader and wider group who are engaged in traveling for leisure and even they are spread over the most of the age ranges and socio-economic groups.

Segmentation is psychographic

For the segmentation another particular approach is the psychographic that is referred as an attempt for capturing that what is driving by the behaviours of the customers; for instance opinion, personalities, opinion, attitudes, values and aspirations. Such as the variation of the cabin classes are offered by the Singapore airlines. The first one is the economy and business classes for meeting the peoples products demands. In order to offer the status preferences to their valued customers the tier membership is employed by the Singapore Airlines.

Psychographic variables Preferences

There are the most important and major group’s leisure and business travellers that are vary according to their preferences. It has been admired that; in aviation industry on average the elite travellers contribute less than 50% of the revenue though they can add up for less than 20% in the numbers of the passengers. Therefore the additional information is given by the preferences of the specific segments that is particular targeted by considering the customers of the specific area. Singapore Airlines are offering the exclusive services for their flights wrong with variety of the cuisines that is served in the plane. It includes; special seating comfort, exotic drink and another particular thing. Since the other segments at the same time, the travellers of the leisure from the major chunk of the passengers along with their preferences cannot be ignored as well (Dolnicar, 2014). 

Behavioural segmentation

The behavioural segmentation is one of the most important and last segment approach that is established according to the behaviours and likings of the customers. This approach is based upon the observable issues for the consumer behaviour while purchasing the products. The buyers commitments, readiness and frequency of the consumption is includes in its characteristics. According to this approach the corporate market tends towards the passengers who are included in the frequent flyers that can easily attain the benefits from the Singapore Airline’s. The frequent flyer programs is applied in the terms of the customer’s loyalty of the airlines.  There are the numbers of the people who are loyal for their brands and they always strict for their familiar brands been the competing one is on the sale.

Target Segment of Singapore Airlines

It includes the division of the market in to various segments. The Singapore Airlines are started decide about to brand itself as premier fight carrier that can focus on the premium travellers, corporate business who are concerned with the socioeconomic status. This is not aimed at the high end market. The Singapore Airline’s always focus on to caters their leisure travellers who can pay higher prices for enjoyed and better in flight safety and service. It also focus on those customers who are eager to pay for the glamour’s and premier brand name as Singapore Airline’s. The economic and premium customers can be clarified by getting the services from the differentiated segment approach of the Singapore Airline’s. The Singapore Airline’s can attain the more clear market coverage by adopting this strategy.

Nature of demand

The demand nature varies according to the requirements of the leisure and business travellers. This is used for the analysis of the parameters of the discrimination. The more working space are required for the business travellers and they also need telephone connection and internet. Meanwhile, the more inflight features are required for the leisure travellers.

Urgent Travelers

The urgent travellers are known as the infrequent user of the Singapore airlines. Usually they represents the segment of the small market in the term of the size and space. Such consumers are required to travel urgently which is commonly unexpected from the various viewers. The greater example of the urgent travel can relate towards attending any emergency case, wedding and funeral ceremony. It includes the situations to having sick relative or some business work situations which require immediate attention. By offering their needs for ravelling almost immediately; they are waiting for the destination requirements and availability of the flights as compare to the any kinds if the price considerations for the brand of the airline as; Singapore airlines (Sara Dolnicar, 2018).

Business Travelers

Usually from the large proportion of the domestic customer base of the airline the business traveller’s move from one place towards another place. There are the numbers of the business that have their operation in the various portions of the country. They also have opportunities for sales across the country or globe. They have need to frequently travel by the plane. Usually, the organization wide decision are made by the business customers for selecting the airline according to their own choices of the airline as compare to traveling individually. The individual traveller can be engaged in the purchase decisions. As it is representing by its name; in this classes the business person like to travel and they chose this class for their usage. Specially; for those employees who are expected to travel frequently as well as for managing the executives level staff. This segmentation of the Singapore airline is really a brand loyal because they always prefer services rather than the prices. They can bear the little difference for the change in prices but the level of the services can be compromised  (Camilleri, 2018).

Budget Conscious

The air travellers who are the budget conscious they are tend to be more infrequent travellers as well as holiday makers. It also includes the consumers who are perceiving the little difference among the airlines. There are the group of the consumers in the most of the markets. These groups’ pf consumers are more price sensitive and it includes the people who belong to middle level family status.  In such case; there is not direct experiences for the infrequent travellers for distinguish among the airlines as well as it can use the decision of the price for simplifying their choices. Therefore; the consumers who have little difference among the offerings of the airlines will simplify aim for the cheaper prices. Such customers always focuses on the prices and they cannot compromises for the increase in prices.  

References of Segmentation analysis of the Singapore Airlines