Running head: PART A: MARKETING PLAN GREAT TRAVELERS AIRLINE
PART A: MARKETING PLAN
Part A: Great Travelers Airline Marketing Plan
MKT500 Marketing Management
Dr. Lisa Amans
July 20, 2020
Great Airline Travelers Express Limited is a private independent airline operating a fleet of aircrafts for economic and VIP class travelers. The fleets comprise of aircraft not more than 65 fleets. Ideally, the company is located in major cities across the entire United States. In addition, the company is specializing on providing ultra-low-cost carriers and niche services.
The mission of Great Airline Travelers Express Limited is commitment to offer exemplary quality customer services with a sensation of friendliness, independent pride, company spirit, and warmth. The Great Airline Travelers Express Limited mission statement shows their commitment to customers and pin points the importance of independent interactions between customers and employees.
Great Airline Travelers Express Limited is a local travel airline that is committed to offer the best quality transportation services and to optimize returns for the benefit of its employees and shareholders. The company aims to connect major airlines hub through contractual engagement, provide exceptional professional principles in their endeavors and strives to be outstanding in everything they do in collaboration with major Airlines.
Short-term goals are used by Great Airline Travelers Express Limited to fulfill their bigger aims (Sahar, 2020). These short-term goals include improvement of customer services. The airline is determined on placing their focus on the entire journey. Customer’s journey starts before they arrive at the airport and progresses after the flight has landed. In addition, the airline has been building their relationships with their customers and giving power to them.
Furthermore, another short-term goal of the airline is to identify their fierce competitors. Understanding what the company’s competitors are currently doing in the market, their pricing strategy, marketing strategy, and the companies they collaborate with is vital for the Great Airline Travelers Express Limited. Additionally, the Great Airline Travelers Express Limited will incorporate social media in its marketing strategies. Social media marketing will increase traffic, customer satisfaction, and interaction and feedback. It will also enable Great Airline Travelers Express Limited to respond to their customers immediately.
These goals are assessed by tracking customer engagements. If the customers are frequently engaging the airline for instance through social media, then the Great Airline Travelers Express Limited will be able to know if their customers are satisfied or not. In addition, these goals can be assessed tracking retention. If employees and customers are retained then the Great Airline Travelers Express Limited will have met their short-term goals.
The Great Airline Travelers Express Limited has identified several long-term strategic goals. Currently, the operating environment of airlines is very challenging, but Great Airline Travelers Express Limited is seeking to offer low fares that give rise to increased customer traffic while progressively focusing on maintaining cost-control and operating proficiency. Low fares are developed to stimulate demand, specifically from fare-sensitive business and leisure passengers who might choose to use other forms of transportation or choose not to travel at all.
Similarly, the airline is striving to provide exemplary customer services than its rivals. The Great Airline Travelers Express Limited has a proven legacy for less flights cancellations, infrequent loss of bags, and excellent time management than its competitors do. The airline achieves this by concentrating seriously on the implementation of these services and by mainly operating from uncongested airports.
Additionally, Great Airline Travelers Express Limited long-term goal is to offer point-to-point service on short-trail routes. The airline offers frequent point-to-point service on short-trail routes to regional and secondary airports in and across major populace areas and travel destinations. Moreover, the airline goal is to utilize the latest technology in its operations. Modern technology will enhance efficiency that lowers costs and advance customers experience. It also provides real and palpable benefits to travelers. Other long-term goals include focus on quality and safety maintenance, low operation cost maintenance, collaboration with top airlines, and countering current problems.
Long-term goals are assessed by monitoring the rate of growth compared to the competition and the market. If the enterprise is growing despite the presence of fierce competitors and other challenges, then it is a good indication that the Great Airline Travelers Express Limited is meeting its goals. Furthermore, tracking increase in market share can be used to assess long-term goals. If Great Airline Travelers Express Limited progressively increases market share then the enterprise is on the right track.
Environmental analysis is a vital tool for Great Airline Travelers Express Limited in gaining deeper insights and decision making in all aspects of its business. The company’s success largely relies on critical decision-making capability. Environmental analysis enables Great Airline Travelers Express Limited to select the best option for its success and growth.
There are approximately twelve independent private Airlines in U.S. In addition, competition also exists from a number of regional and national airlines that pose steep competition on small-scale airlines. The rival forces compete on services and prices. The rival has smartly utilized e-commerce such as online booking and ticketing. The weakness of the rivals is that they have not attained to provide quality travel services at a low-cost. Great Airline Travelers Express Limited differentiates itself due to its capability of delivering services and products with high margins based on low costs.
Rising fuel costs is a significant economic factor that affects the aviation companies. Increasing fuel prices largely lowers the profit margins for Great Airline Travelers Express Limited. The company will focus on increasing the volume of its passengers in order to manage its profit margins. In addition, increasing airline travel because of growing economies and burgeoning middle class is important. Furthermore, Great Airline Travelers Express Limited is experiencing the adverse effects of COVID- 19 pandemic on its aviation economy.
Finally, Great Airline Travelers Express Limited focus on United States regulation on emissions from aircrafts and recognition by government and independent agencies in the sector of sustainability is likely to raise the costs for the company. Generally, the economy of the United States for the past several years has remained stable and the rate of unemployment has been low. Because of this, many Americans are able to spend their leisure time travelling which boosts the growth of the Great Airline Travelers Express Limited.
Political and Legal Analysis
Political structures of a nation and their interrelationship with business world have far-reaching effects on aviation economy. There is no optional for airline companies to abide by government policies, they must adhere to them. The political circumstances may entail the economic situations or wars. Increased taxation policies are favorable for the company in terms of revenue, for several years’ taxation burden on aviation industry, has consistently been increasing.
Similarly, Great Airline Travelers Express Limited must adhere to political factors, such as agreement for particular routes (Tran, 2019). Terrorism threats may likely affect the services of the company. Moreover, strong opposition to cooperation with Middle East carriers is like to have impact on Great Airline Travelers Express Limited. Finally, Great Airline Travelers Express Limited is experiencing aggressive policies by the FAA and Dot, in terms of air snarl-up management, control of growth of air as well as checks on registration of aircrafts and their parts.
Most of these government policies are costly and affects the Great Airline Travelers Express Limited ability to create jobs and facilitate growth. Concisely, any slight transformation in the United States government regulations on fuel generation, taxation, transportation and marketing will automatically have some negative repercussions on the revenues of Great Airline Travelers Express Limited.
The legal factors are wide and complex set of policies or laws that affect Great Airline Travelers Express Limited in United States. There are several laws that influence United States aviation industry and carriers. FAA is the sole regulatory agency that checks on the airline operations and associated policies. The major concern of the FAA is the safety regulation for passengers and many other aspects such as operations, customer service, labor and environmental issues, which demands that all airlines must comply or face the risk of being fined heavily.
For example, the dangerous flaws in the Boeing 737 Max 8, Great Airline Travelers Express Limited to ground all its flights of similar make. At the time FAA order was enforced, the Great Airline Travelers Express Limited had eight planes of the Boeing 737 Max 8 among its fleet, which were grounded affecting the revenue flow. Great Airline Travelers Express Limited is the most compliant airline company. Several policies and laws are consistently growing and that strict compliance has had obvious outcomes in both short term and long-term goals of Great Airline Travelers Express Limited.
Technological and technology reasons are playing pivotal role in the aviation economy as far as competitive advantage and growth is concern. Technological innovation in the Great Airline Travelers Express Limited has increased because of the long-term focus on consumer reliability, safety, and rising competition. In addition, increased automation, effective aircrafts and secure airline technologies are vital to business of Great Airline Travelers Express Limited. Increasing use of mobile phone apps and abilities alongside google payment has broadened passes.
The company has made effective updates on its messaging systems to facilitate high client convenience and sophisticated overall experiences. Great Airline Travelers Express Limited is also utilizing digital technologies for marketing such as Instagram Facebook and Twitter for promotion and customer involvement. Technology has been vital in optimizing airline performance and sustaining competitive advantage by Great Airline Travelers Express Limited.
Sociocultural Forces Analysis
Sociocultural factors in the context of business world have also been rising. Demographic factors have an influence on various aspects of trade including local and regional marketing operations. According 2019 survey on posterity to travel, indicated in millennial group showed that 14 percent of people in United States are aged between 19-35 years, travelled more than five times during the last two years for personal reasons.
Social factors influence Great Airline Travelers Express Limited. The economic and technological consciousness in society has an effect on the demand of air travel. The social model of Great Airline Travelers Express Limited is vital factor in terms of customer loyalty, marketing and demand. To develop and maintain the social image the company has invested heavily on social responsibility. Great Airline Travelers Express Limited is recognized for its critical focus on customers, which is pivotal in sustaining competitive advantage. However, social factors contribute to inadequate pilots.
SWOT and Needs Analysis
The SWOT analysis of Great Airline Travelers Express Limited is a proven management tool that enables the company to benchmark its performance and business as compared to the rival airline industries. As at 2020, Great Airline Travelers Express Limited is the leading regional airline company in United States.
Great Airline Travelers Express Limited SWOT Analysis
· Robust operational connections that is more than 2000 flights in a day to 200 destinations
· Low-cost and high quality services make it the favorite airline to travel in. This has contributed to increase in revenue generation.
· Excellent client experience with branding image, comfort and entertainment attracts large number of customers
· Weak financial muscle due to constant losses that hinders the company from meeting its goals
· Over reliance on 3rd party collaboration to offer services for its customers, fueling, operations and maintenances.
· COVID- 19 pandemic has disrupted aviation business. It has led to closer of some destinations
· Steady growth of airline economy in U.S. will influence long-term marketing plans and customer oriented services
· Strong United States economy will influence company’s revenue growth and the quality of services and product provides to the customers.
· Growing regional travel among the millennials customers enables the company to increase revenue generation and forecast on its long-terms goals.
· Strong completion from rival airline companies who have specialized on regional travel on low cost airlines and discount provision. This contributes to loss of customers.
· Increasing fuel prices hence high cost of operations and low revenue returns that is likely to contribute to low quality customer services.
· FAA policies for example grounding of Boeing 737 Max 8 and related models have grounds the company’s operations leading to customer loss and low profits.
Note: Strengths, weaknesses, opportunities, and threats for Great Airline Travelers Express Limited Company
Great Airline Travelers Express Limited is an independent regional airline that is positioning itself through its short-term and long-term marketing strategies. The company is utilizing both PESTAL and SWOT analysis to increase its growth and sustain competitive advantage.
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