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Contents
1. Introduction……………………………………………………………………………
2. Business Strategy……………………………………………………………………
2.1. General profile of the Airline Industry………………………………………….
2.2. Competitors Overview and Situation analysis………………………………...
2.3. The Competitors…………………………………………………………………
2.3.1. Air Arabia…………………………………………………………………
2.3.2. Etihad Airways…………………………………………………………….
2.3.3. RAK Airways………………………………………………………………
2.3.4. Competitive advantageof Emirates Airlines…………………………...
3. Strategic Marketing Focus…………………………………………………………...
3.1. Mission…………………………………………………………………………….
3.2. Goals and Objectives……………………………………………………………
3.3. Values……………………………………………………………………………
3.4. Core competencies………………………………………………………………
3.5. External Environment -PESTAnalysis………………………………………...
3.6. InternalEnvironment – SWOTAnalysis……………………………………….
4. Marketing Plan………………………………………………………………………..
4.1. Target Market…………………………………………………………………….
4.1.1. UAE Tourismand Business segments…………………………………
4.1.2. Expatriates in UAE………………………………………………………..
4.1.3. TransitPassengers of Dubai…………………………………………….
4.2. Intended Strategies………………………………………………………………
4.2.1. Market Penetration (Improving In-flightservices)……………………
4.2.2. Market Development (Extending new routes)………………………....
4.2.3. ProductDevelopment (Firstclass private suite)………………………
4.2.4. Diversification ( Low cost carrier)……………………………………….
4.2.5. Business Strategy over Ansoff’s growth matrix………………………..
5. Evaluation……………………………………………………………………………..
6. Implementation Plan and Budget…………………………………………………...
7. Conclusion…………………………………………………………………………….
8. Annexure (Tables and Charts)………………………………………………………
9. Bibliography…………………………………………………………………………..
1) INTRODUCTION
With justpurely two aircrafts, the Emirates airline was established in the
year 1985 by the ministry of Dubai. After two decades Emirates has
expanded its empire with 83 aircrafts soaring to 78 destinations in more
than 55 countries worldwide. Emirates Airlines has a one of the largest
number of cabin crews hailing from95 different nationals.
With such strong history Emirates Airlines are still venturing further in to
the future. They haverecently made orders which are worth morethan 26
billion US dollars for about 45 numbers of A380 Airbus. This will make the
company to be the world's largestpurchaser of Super-Jumbo Air bus.
Emirates Airline is expected to become not only one of the greatest
budding airlines but also the fifth mostgainful airline in the world.
Emirates Airlines is devoted to accomplish its mission. By installing
individual entertainment systemin all of its classes, having 22 audio & 18
TV channels, as well as enabling customers to not only book online, search
for flights but also to choosetheir seating arena consequently this airline is
identified as a pioneering and customer-oriented contributor of advanced
services becauseof these outstanding features. Emirates empowered over
280 international awards, oneof them being the prestigious CAPA airline of
the year award 2005 by the Centre for Asia Pacific Aviation.
2) BUSINESS OVERVIEW
General Profile of the Airline Industry
Today it is definitely the airline industry which is booming to be the most
spirited and emerging industries in the world leading to not only economic
growth, international investment, but also tourism. In the last decade,
airline industry has urbanized powerfully by 7% annually for both business
as well as relaxation needs. This industry is one among the best ever
growing sectors with growth rates increasing on averageof 3.2 times
greater than the GDP rates. This figureis predicted to riseby an averageof
5 % a year from2000 to 2010.
Sometimes the airline industry is affected by the political, economical and
trade factors. Taking an example of the political factors, the September
11th attack dropped the number of passengers who travel, becausepeople
were afraid of being attacked by terrorists. Theeconomical factor which
gets affected is due to increase in oil prices which shatters the profit of the
global airline industry.
Many airline companies initiated to modify their strategies and services not
to justdwell but also to succeed in the airline industry. They investdeeply
in the quality of services by introducing e-booking system, more
comfortable seats for passengers, low costcarriers, new interactive
entertainment systems and many other technological techniques. The ideas
behind introducing these services wereto magnetize customer's faith also
to gain a competitive advantage. To survivein such a challenging market,
many companies set on agreeing with each other to reduce costs and also
sharethe available resources, which is otherwisecalled as alliance.
On the whole, the airline industry is expected to double the number of
passengers by 2010 and also to exceed 3 billion due to the trade, economic
development and tourism. Thus obeying the theory, "survivalof the fittest",
successfulairlines will be thosethat can continue to play smartby putting
into action the above ideas so as to securea strong position in the aviation
market.
Competitors Overview and Situation analysis
The airline industry is in its prime of life, hence there is a tough competition
in the market and the rate of sales growing faster before beginning to
stabilize gradually. In this stage advertising and promoting sales makes it
obvious that the competition is getting more aggressive. Furthermoreto
find best services required in gaining the attention of customers, many
competitors have increased their research and development (R&D)
budgets.
In view of this, many companies have now started on focusing to
differentiate their products and services fromtheir competitors in order to
capture their customers'brand loyalty. For case in point, there are
companies concentrating on cutting the operating cost, the result is that
the profitmargin will decrease and so the least efficient companies will
have to leave the market so that only the well-established companies
remain. There are many companies which use offensivestrategies instead
of defensivestrategies. They achieve this through modifying their market
productand marketing mix to surviveand compete during this stage.
For instances to modifying the marketing mix, the Kuwaitairways
implemented the strategy by launching a low costcarriers with the
intention of increasing its customer base and loyalty and also increasing
sales of.
The Competitors
Emirates airlines are facing stiff competition with major international and
national airlines on the marketshares. However the major competitors
identified here are the national airlines of other states of UAE.
Air Arabia
Air Arabia, a national airline of the Sharjah emirate is established in 2003 by
Sharjah ruler's decree. It is based in Sharjah airportand has got quick access
to Dubai and fastcheck-in facility. Air Arabia is the only low-fareairline in
UAE and the firstairline to introducethe low budget airline in Middle East
and Northern Africasince 2004.
After success stories of American and European low-costairlines Air Arabia
modeled low fares on customized local preferences. They focused on their
business mission by offering mostconvenient and frequent online booking
as well as less expensive air fares in the market with better serviceand
safety standards.
Air Arabia's worthy scheme"Pay less. Fly more", enables customers to
make smarttravel choice; those who can't afford and were hesitant to
travel in the past, to start flying and those who traveled more frequently,
benefiting both and vacation travels.
Etihad Airways
Etihad Airways firstcaptured the skies in November 2003, with only four
member team organization. Now it stretched out to a family of over 2500
employees spread across region. Etihad airline has also reputed as the
national airline of the UAE (Abu Dhabi) by a royaldecree of Sheikh Khalifa
bin Zayed Al Nahyan (Presidentof UAE) with investment of AED 500 million.
Compared to 2006, Etihad conceded more than 4.6 million passengers in
2007. Ithas also been designated as the World's leading New Airline two
years in a row, in 2004 and 2005.
RAK Airways
The fourth national airline of the UAE is RAK Airways which was established
under an Emiri Decree by Ruler of Ras Al Khaimah in February 2006
The core intention of RAK Airways is to give supportto the economic
development of Ras Al Khaima. The development includes economic free
zones to magnetize business as well as residential, leisure and tourism
projects. This Airways function on charter as well as scheduled services so
as to assemblethe demand of the various markets that the airline will
serve. In a costsuccessfulmanner they providevalue for money to
customers
Emirate's competitive advantage
To gain a competitive advantage amongst its competitors Emirates Airlines
adopts differentiation generic strategy by contributing the top notch quality
services. This is done to be the best company in the marketand to
segregate fromits competitors. For illustration, the firstairline that offered
TV screen for all classes was Emirates airways.
Another instance, along with other airline company like Qatar Airways,
Emirates airlines provided training courses by using the most modern
machines, called plane simulator. This was a feather to the hat of Emirates
airlines. The aim of such change is to be on top of the industry thus increase
the awareness nationally and internationally which in turn increase the
demand and the profit.
3) STRATEGICMARKETING FOCUS
In this section weshall take a peek into mission, goals, core competencies
and external and internal environments in regard to the Emirates airlines.
3. A - Mission
"Offering consistently high-quality value-for-money serviceand to be the
best airline on all of its routes".
Emirates airline is determined to accomplish its mission by positioning itself
as a long-termsustainable business providing valueto its customers,
employees and investors.
3. B - Goals
Discussing thegoals, they are states as below:
Focusing on maximizing the overall Group’s return on capital.
To be diverse and hence balance to the Group’s earning streams
Take full advantage of the group’s competencies in market.
Objectives
Tangible objectives pertaining to the goals are :
Retain and improvefrequent business class traveler’s marketshare.
Increasemarketshare40% to 55% by end of 2009
Tap low costcarriers marketto achieve company’s return on
investment.
Promote Dubai’s Tourismactivities and introduce Dubai to the world.
3C- Values
Emirates Airlines has valuable human resources as wellas a bunch of well
qualified staff. The vice-chairman of the airline itself has more than 50
years of experience in the aviation industry. The airline also provides
outstanding training to its staff and is devoted on improving their skills not
considering the costs. In addition, Emirates Airlines is the international
carrier of Dubai which is a politically stable area and has a strategic location
especially for transit passengers.
3. D - Core Competencies
Various key factors should be implemented to sustain airline companies’
achievement.
Differentiation
By providing advanced services airline companies tend to differentiate each
other. For instance, the best way to invite customers and to distinguish the
company fromcompetitors is by providing the aircraft with the latest
technology, such as wide seats, e-ticketing, etc.
Strong brand name
By obtaining a strong brand name it is easy to build a baseof loyal
customers. This guarantees that customers will stick with the strong brand
name company and hence ignore any attractive offers coming fromother
competitors. There are airline companies utilizing sometechniques such as
offering a flyer mile to win a free ticket if the points were completed to
retain their customers,
Alliances
As discussed earlier we are awareof alliance. By linking networks, alliance
will allow different companies to sharetheir resources so as to build a wide
base of customers, expand services and increasenumber of routes.
Moreover, the outcome of this is in sharing experience and decreasing the
operation costs.
Relations with supplier
To constructa strong relation with suppliers the Airline companies must
emphasis by setting long-termcontracts. Such relations will be beneficial
since this will keep them in the safeside even if there was any change in
the pricing strategy in the future as there is a contractbetween them.
3.D - External Environment
PEST Analysis for Emirates
Political Political situations that affect the airline industry will be mainly
wars and terrorism. For instance, due to the terroristactivities in different
areas of the globe, namely in USA, Palestine, Iraq etc made these areas
unpleasant for not justtourists but businessmen to travel.
Economical
One of the factors following the success of any airlines is to have the
most sophisticated airports which are facilitated with cutting edge
technologies to meet customer’s requirements. UAEhas major plans on
investing to develop such international airports in Abu Dhabi and Dubai.
The benefits are to enhance the economical growth, reduction on oil
revenues, to increase the number of tourists plus thereby driving profits to
airline firms.
Social
The population of the world is shooting at high rates. Thus the social
factors also increase. For instance, the population is expanding in UAE, this
there is because UAE is a multicultural country. As the expatriates number
in UAE increase, the profit obtained by the airline company also increase.
Technological
New technologies affect this industry in negative and positivemanner. For
example, the teleconferencing reduced the necessity for face to face
business meetings. This reduced the number of businessmen traveling and
hence the purchaseof business tickets.
3.E - InternalEnvironment
SWOTanalysis for Emirates
Strengths
Member of Arab alliance ( Arab Air)
FirstAirline Company to offer Internetbooking with various features
and options.
Self-Check in facility for customers in Dubaiand partner airports.
Long-haulflights Dubaito New York
Worlds largestpurchaser of Airbus by 2012 , booking 45 Airbus air
crafts.
Increasing employees devotion to work by providing training ,
rewards and performanceanalysis.
Official sponsor of FIFA World Cup 2006.
Skywards Miles FFP shared with many airlines including Sri Lankan
airways
Weakness
Huge investment to purchaseair planes and implementing latest
technologies there is high amount of operational cost.
Emirates airlines fares are higher than traditional airlines.
No global alliance membership for Emirates Airlines
No permission to operate in Abu Dhabi , capital of UAE
Opportunity
UAE ‘s higher per cap income
Governmentis disposing money to develop regional airports.
High forecasted growth rate for UAE tourists
Growth on population and internet usages lighten World and Dubai
makes room for opportunity.
Dubai Air shows helps to promote regional aviation industry.
Threat
Might face losses of around 5 billion due to soaring oil prices
Aviation security expenses and insurancewill also increase
operational expenses of airlines industry.
Low cost carriers areanother threat for traditional airline operators.
Information security vulnerabilities poses danger to electronic ticket
system
Natural disaster and acute diseases affect tourism
In a nut shell, Emirates Airlines has strengths like new technology, such as
e-ticketing and self check-in services. An evident weakness is the elevated
prices of Emirates due to its huge investments in ordering aircrafts.
Although it has opportunities like investments in Abu Dhabiairport there
are many threats are concerning it, such as increase of oil prices, low cost
airlines and the spread of killer diseases.
4- MARKETING PLAN
4.A - Target Market
Over the last few years, Emirates Airlines is one of the air carrier, which
barely felt the economic and airline down turn. Emirates Airlines is one of
the airlines, which hardly felt the economic and aviation down-turn of the
last few years. Emirates airlines marketsegment is divided into three major
categories of customers
4.A.1 - UAE's Tourismand Business segmentCustomers
Dubai's emergence as a regional business and tourismhub has provided
emirates airlines plenty of roomfor growth and has fuelled regional air
passenger traffic. The recent freehold ownership law has been a major
reason for the attraction of tourists and business communities. Dubai aims
to attract 15 million visitors by the year of 2010, the ruler of Dubai has
emphasized about this on his strategic plan for the emirate of Dubai.
The growth of the region especially GCC's is now started stimulating
tourismand business sector and providing roomfor local airlines to further
grow. According to World Travel and TourismCouncil (WTTC) Middle East
accounted for around 2.4 % global travel and tourism activity in 2006,
forecasting a growth of 5.9 % for the coming years. Emirates should plan to
take advantage of this boom for increasing their passenger traffic.
4.A.2 - Expatriates in UAE
UAE world's 5th largestCrude Oil exporter and Dubaiworld's fastest
growing city has created huge demand of skilled and unskilled workforceto
feed its booming economy and emerging labor market, the highly paid
labor marketis a major attraction for the various work forcearound the
world. The overall expatriate population of the country equals 80% of its
total population; the national emirate population is 20% of the total
population. United Arab Emirates has got large amount diversepopulations
in the Middle East. As per the 2006 censes the total population of UAE is
4.2 million consisting of the national emirate(20%) , other Arab and Iranian
(23%) , South Asian (50%) and other (8%) constituting Westerners and east
Asians. The diversity of this population enables emirates to plan their route
all around the world; emirates have reached mutual agreement with almost
all the national authorities around the world to operate in. Dubaioperates
in an "open sky" policy, which allows any carrier to compete with Emirates
airlines.
4. A.3 - Transitpassengers
Dubai is the operational hub for Emirates airlines, the best positioned
connection point between Europeand Asia/Australia has supported the
growth of emirates airlines. Emirates airlines has been using this
"connection point" in favor of promoting their business especially transit
passengers, thewell established and marketed wide range network enables
Emirates Airlines to prosper in this particular segment. Emirates airlines
presently operates 87 cities in 59 nations around the world (still growing).
Additionally to accommodate the growth in the sector Dubaiairport
authorities are invested $4.1 billion in the expansion of DubaiAirport, The
"Fly Emirates "caption is well known to the world and attracting customers
fromaround the world.
4. B - Intended Strategies
Airline industry achieved in the mature stage and there is a tough
competition between various operators. According to the analysis of
external and internal factors each airlines uses offensivestrategies to
securetheir position on market.
Emirates adopts below marketing strategies to operate business efficiently.
4. B.1 - Market Penetration (Improving In-FlightServices)
Business focuses on selling existing products to existing markets drives
growth strategy for Market Penetration.
1) Retain and boostmarket shareof Emirate airlines productand
services
2) Protect market dominanceof Emirates airlines existing markets.
3) Driving out competitors by restructuring maturemarket.
4) Enhance usageof existing passengers
Enabling passengers to make voice and data call over aircraft’s telecom
system
Tele-communication is vital element in everyone daily life, So
communicating with others while on airplane would be very good value
added servicecan provideby Emirates Airlines. This can be done by adding
some infrastructuralchanges on aircraftto communicate and partnership
with telecom provider who can assistdeploy. Currently Emirates uses high
expensive tele-communication method to make voice calls and internet,
instead can deploy new systemto make voice and data calls fromtraveler
mobile phonevia trusted telecom providers.
Passenger’s mobilephone should be beam signal to the ground satellite
systemand fromImmarsatwhich is already installed on mostof the
Emirates airplanes.
Similar service, “On Air” is being developed by Airbus SAS and air transport
ITserviceprovider SITA. Early of this year British carrier BMi and TAP-Air
signed on to offer OnAir’s voiceand text messaging services for European
flights.
4.B.2 - Marketdevelopment: (Extending New Routes)
Deploying current services into new markets where company seeks to sell
its products into new areas. Possibleway to achieve this strategy by
launching existing services into new geographicalarea or new market
segments.
Emirates Airline’s objective is to build up Dubai into a widespread aviation
center that will finally serveas an important universallong haul hub. It
provides an alternative to the traditional European airline hubs like
Heathrow Airport(London), Charles De Gaulle (Paris) and Schiphol
(Amsterdam). Theairline heavily promotes Dubaias a destination, offering
reduced hotel rates as well as insight into events like the Dubai Shopping
Festival, hoping to attract more visitors to the city.
Adding new routes and destinations are suggested , especially there is
growth in UAE tourism. Major regions are not operated by Emirates Airlines
and haveto extend someof the destination world-wide(especially
attractive areas)
As always, the airline conducted road shows and press conferences to
announceits entry into a new city. These events allow travel agents, tour
operators and local airline personnel in contact and gain information about
Emirates’ new routes, holiday packages and other benefits.
After establishing a route to the country’s economic hub – Shanghai– the
airline offers passengers a chanceto visit the epicenter of China’s political
and cultural activities. Itis China’s richest city in terms of historical value
and has a heritage that dates back over 3000 years and houses marvels as
the Forbidden City, the Great Wall of China and the Ming Tombs
The success of Dubai as an intercontinental hub has been facilitated by
airlines such as Emirates. The geocentric natureof Dubai has become
incredibly important. Now there are hardly two points on the globe where
it is not logical or possibleto use Dubai and connect any two cities, and
usually it is a pretty direct route.
4.B.3 - ProductDevelopment (PrivateSuite)
Introducing new services into existing markets implies product
development. This strategy involves the development of fresh
competencies and requires business to expand customized services which
can apply to currentmarkets.
Since Dubai is a hub for all international business travelers this is high time
to introduce new productto cater top level business executives. Imagine
the CEO of multi-national company makes lengthy overseas journey to
attend a board meeting that could have a major impact on the company
financials. Of course, company wants CEO to be top of his game, rested,
refreshed, relaxed and ready.
The cost of CEO’s air travel is doesn’tseem so expensive after all.
That’s why Emirate Airlines introduce high quality first class privatelounges
to attract business travelers. This premiumclass private suite would be fully
outfitted with personalstorage, coat cabinet, desk and individual mini bar.
Long seat reclines to become fully horizontalcouch and the 21” wide
screen entertainment over 500 channels. Exceptional level of personal
services including a la-carte gourmetcousins and wide-ranging wines
provided by specially trained multi-lingual cabin crews are the other value
addition for this product.
4. B.4 - Diversification: (Low-costcarrier)
Diversification is a strategy, wherebusiness sells new services into new
market segments. Diversification is more risky strategy due to limited
experience on particular new marketareas.
After the success stories of European low cost carriers, Middle East
operators also started eyeing to explore new marketing concepts of "Frills-
free" fly. The global low cost carrier sector is growing at more than three
times the averageindustry global rate, with justunder 50 million seats on
342,000 LCCservices offered worldwidein January 2007, up 17% and 15%
year-on-year, respectively.
Low cost carriers areairlines that offer lower fares than traditional network
airlines by eliminating certain complementary passenger amenities
generally offered by traditional airlines. The key opportunity for low cost
carrier lies in passenger fareelasticity, low air transportpenetration rates
and substation of traditional modes of low-costtransportsuch as trains and
buses.
Air Arabia dominates exclusively to this low costcarrier service in UAE,
Emirates Airlines mustdecide how to respond this threat posed to the large
expatriate market in UAE. Among the options considered there is scopeto
introduce low-costsubsidiary of Emirates Airlines.
Emirates Airlines be supposed to diversify slightly fromcurrentmarketing
objectives to acquire low costair travel market shareand to retain its
customer base of UAE expatriate market. This can be done launching new
subsidiary to cater budget airline market. Key routes should be according
to the high demand and large number of expatriate's home country like
Egypt, India and Pakistan.
Under the arm of Emirate Airlines, new budget airline subsidiary has to
introduce to new Al-MakthoumInter-nationalAirportbeing constructed in
Jebel Ali, located on Dubaiborder. This will provideresidents of Dubai and
Northern emirates enhanced travel option to neighboring destinations.
Emirates Airlines is placing lease order of for 200 aircraftand to be
operational by 2009. Thecarrier is expected to use Airbus A320 or a Boeing
737 on lease basis for the firstfew years prior to acquiring ownership
status.
Similar practices already succeeded the case of Kuwaitairways and they
implements the strategy of modifying marketing mix by beginning a low-
cost carrier called "Al-Jazeera" in order to enhance its passenger baseand
loyalty and boostin sales.
Business strategy over Ansoff’s growth matrix
Ansoff’s product/marketgrowth matrixprovides for a business tends to
grow depend on whether it sells new or currentservices in new or current
markets. New products and new markets could relate to current products
and currentmarkets or may possibly distantand discrete.
The result fromthe Ansoff’s product/marketmatrixis chain of
recommended growth strategies that set the road of business strategy.
Figure: - Ansoff’s growth matrix
5 – EVALUATION
After marketing plan is implemented, it should be evaluated. Evaluation
entails gauging the extent to which marketing objectives have been
achieved during the specified time period. Below table demonstrate
effectiveness of marketing strategies and counter-measureto
improve/replace currentplan.
Improving In-FlightServices
Success criteria of deploying a systemto allow passenger to usetheir
mobile phones to use voice and data communication is to increasemarket
penetration. Itcan be measured in terms of voice and data usageand
growth of marketpenetration. There is not corrective action plan if it fails
to respond.
Extending new routes
New destinations are implemented to achieve market development. Flight
occupancy is the best way to measureresult of this strategy. Itneeds to re-
discover new destination if the flight occupancy level is lower than
expected.
FirstClass Private Suites
It’s a new productof Emirates Airlines and can be measured the success of
the productlaunch. Quantitative measurementof this productwould be
number of booking or occupancy. If it fails to respond, correctiveplan is to
reduce the price of ticket but again this is not price sensitiveproduct and
cannot be achieved by price reduction.
Budget Airlines
Success criteria would be capturing new customer base for the airline .Since
its separate operating entity we can gauge financial results of operating
profit would be good measureto evaluate the success of budgetairline
subsidiary.
Effectiveness should be identified through external marketing auditor or
agencies. A marketaudit helps management allocate marketing resources
efficiently. Market audit should be comprehensive, systematic, periodic
evaluation of the objectives strategies, structureand performanceof the
marketing organization.
6 – IMPLEMENTATIONPLANS & BUDGET
Strategy # 1 (MarketPenetration)
Strategic Program Deployment a systemto passenger to makevoice and
data call fromtheir mobile phones
Implementation Tasks
Technical Study
Feasibility Study
Partnering strategic alliance with telecom serviceproviders.
Installation of systemon aircrafts
Marketing concepts to the audience
Responsible
Chief Technology Officer
Vice President – Finance
General Manager – Marketing
Time Scale
New servicelaunch would be 1st January 2009
Cost Factors
Approximate Budget 150,000 for each aircraft
Marketing Budget 150,000
Strategy # 2 (MarketDevelopment)
Strategic Program Operating new routes and destinations
Implementation Tasks
Researching market gap to operate new routes
Feasibility Study
Partnering hotels and touristinstitutions at new destinations
Partnering strategic alliance with local airports to operate
Marketing new routes to the target market
Responsible
Vice President – Finance
Vice Present - Operations
General Manager – Marketing
Time Scale
Four new routes are added every quarter starting fromJanuary 2009
Cost Factors
Additional capital investment for new aircrafts USD 200 million
Marketing budget for each route 0.5 million
Strategy # 3 (Product Development)
Strategic Program Introducing new FirstClass PrivateSuite
Implementation Tasks
Technical Study
Feasibility Study
Installation and modification of aircraft’s onboard faclilities
Marketing concepts to the audience
Responsible
Chief Aircraftofficer
Vice President – Operations
Vice President – Finance
General Manager – Marketing
Time Scale
New servicelaunch would be 1stJanuary 2009
Cost Factors
Approximate Budget 300,000 for each aircraft
Marketing Budget 150,000
Strategy # 4 (Diversification)
Strategic Program Low cost carrier subsidiary
Implementation Tasks
Market Study
Feasibility Study
Leasing and buying used aircraftfor operations
Deploying new set of human resources for this subsidiary
Developing Marketing force for the new target customers
Marketing concepts to the audience
Responsible
President
Chief Executive Officer
Time Scale
Mid of 2009
Cost Factors
Approximate Budget USD 500 million
Conclusion
Traveling around the world will always remain as a special interest in the
hearts of the people. Hence they are and will be in search for the best for
themselves. This will increase the need for better safety as well. Hence it
becomes the responsibility for the airline company to deliver their best in
terms of services & security to their customers.
Emirates airlines have always been on top of the airlines list in the UAE. We
know UAE is a country with differentethnic groups, and Emirates is the
only airline in the country which suits these various cultures. But today as
the number of the airline company is increasing there is immense pressure
on Emirates airlines to keep up their fame and glory.
A strong strategy has been studied and adopted to put words into action.
Therefore Emirates with its unique qualities, untiring services and
promising strategy will be able to improve in delivering the best efforts in a
country like UAE having a mixture of different cultures hence keep their
motto fly high!
8 – ANNEXURE
Annexure (1) Operating Statistics of Emirates Airlines
Annexure (2) Emirates Revenue
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Anon.[n.d] “Aviation makes up 15-20% of GDP in UAE” [online][n.p]
Available from [Accessed 8th June 2008]
 Marketing-plan-for-emirates-airlines

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Marketing-plan-for-emirates-airlines

  • 1. Contents 1. Introduction…………………………………………………………………………… 2. Business Strategy…………………………………………………………………… 2.1. General profile of the Airline Industry…………………………………………. 2.2. Competitors Overview and Situation analysis………………………………... 2.3. The Competitors………………………………………………………………… 2.3.1. Air Arabia………………………………………………………………… 2.3.2. Etihad Airways……………………………………………………………. 2.3.3. RAK Airways……………………………………………………………… 2.3.4. Competitive advantageof Emirates Airlines…………………………... 3. Strategic Marketing Focus…………………………………………………………... 3.1. Mission……………………………………………………………………………. 3.2. Goals and Objectives…………………………………………………………… 3.3. Values…………………………………………………………………………… 3.4. Core competencies……………………………………………………………… 3.5. External Environment -PESTAnalysis………………………………………... 3.6. InternalEnvironment – SWOTAnalysis………………………………………. 4. Marketing Plan……………………………………………………………………….. 4.1. Target Market……………………………………………………………………. 4.1.1. UAE Tourismand Business segments………………………………… 4.1.2. Expatriates in UAE……………………………………………………….. 4.1.3. TransitPassengers of Dubai…………………………………………….
  • 2. 4.2. Intended Strategies……………………………………………………………… 4.2.1. Market Penetration (Improving In-flightservices)…………………… 4.2.2. Market Development (Extending new routes)……………………….... 4.2.3. ProductDevelopment (Firstclass private suite)……………………… 4.2.4. Diversification ( Low cost carrier)………………………………………. 4.2.5. Business Strategy over Ansoff’s growth matrix……………………….. 5. Evaluation…………………………………………………………………………….. 6. Implementation Plan and Budget…………………………………………………... 7. Conclusion……………………………………………………………………………. 8. Annexure (Tables and Charts)……………………………………………………… 9. Bibliography…………………………………………………………………………..
  • 3. 1) INTRODUCTION With justpurely two aircrafts, the Emirates airline was established in the year 1985 by the ministry of Dubai. After two decades Emirates has expanded its empire with 83 aircrafts soaring to 78 destinations in more than 55 countries worldwide. Emirates Airlines has a one of the largest number of cabin crews hailing from95 different nationals. With such strong history Emirates Airlines are still venturing further in to the future. They haverecently made orders which are worth morethan 26 billion US dollars for about 45 numbers of A380 Airbus. This will make the company to be the world's largestpurchaser of Super-Jumbo Air bus. Emirates Airline is expected to become not only one of the greatest budding airlines but also the fifth mostgainful airline in the world. Emirates Airlines is devoted to accomplish its mission. By installing individual entertainment systemin all of its classes, having 22 audio & 18 TV channels, as well as enabling customers to not only book online, search for flights but also to choosetheir seating arena consequently this airline is identified as a pioneering and customer-oriented contributor of advanced services becauseof these outstanding features. Emirates empowered over 280 international awards, oneof them being the prestigious CAPA airline of the year award 2005 by the Centre for Asia Pacific Aviation.
  • 4. 2) BUSINESS OVERVIEW General Profile of the Airline Industry Today it is definitely the airline industry which is booming to be the most spirited and emerging industries in the world leading to not only economic growth, international investment, but also tourism. In the last decade, airline industry has urbanized powerfully by 7% annually for both business as well as relaxation needs. This industry is one among the best ever growing sectors with growth rates increasing on averageof 3.2 times greater than the GDP rates. This figureis predicted to riseby an averageof 5 % a year from2000 to 2010. Sometimes the airline industry is affected by the political, economical and trade factors. Taking an example of the political factors, the September 11th attack dropped the number of passengers who travel, becausepeople were afraid of being attacked by terrorists. Theeconomical factor which gets affected is due to increase in oil prices which shatters the profit of the global airline industry.
  • 5. Many airline companies initiated to modify their strategies and services not to justdwell but also to succeed in the airline industry. They investdeeply in the quality of services by introducing e-booking system, more comfortable seats for passengers, low costcarriers, new interactive entertainment systems and many other technological techniques. The ideas behind introducing these services wereto magnetize customer's faith also to gain a competitive advantage. To survivein such a challenging market, many companies set on agreeing with each other to reduce costs and also sharethe available resources, which is otherwisecalled as alliance. On the whole, the airline industry is expected to double the number of passengers by 2010 and also to exceed 3 billion due to the trade, economic development and tourism. Thus obeying the theory, "survivalof the fittest", successfulairlines will be thosethat can continue to play smartby putting into action the above ideas so as to securea strong position in the aviation market.
  • 6. Competitors Overview and Situation analysis The airline industry is in its prime of life, hence there is a tough competition in the market and the rate of sales growing faster before beginning to stabilize gradually. In this stage advertising and promoting sales makes it obvious that the competition is getting more aggressive. Furthermoreto find best services required in gaining the attention of customers, many competitors have increased their research and development (R&D) budgets. In view of this, many companies have now started on focusing to differentiate their products and services fromtheir competitors in order to capture their customers'brand loyalty. For case in point, there are companies concentrating on cutting the operating cost, the result is that the profitmargin will decrease and so the least efficient companies will have to leave the market so that only the well-established companies remain. There are many companies which use offensivestrategies instead of defensivestrategies. They achieve this through modifying their market productand marketing mix to surviveand compete during this stage. For instances to modifying the marketing mix, the Kuwaitairways implemented the strategy by launching a low costcarriers with the intention of increasing its customer base and loyalty and also increasing sales of.
  • 7. The Competitors Emirates airlines are facing stiff competition with major international and national airlines on the marketshares. However the major competitors identified here are the national airlines of other states of UAE. Air Arabia Air Arabia, a national airline of the Sharjah emirate is established in 2003 by Sharjah ruler's decree. It is based in Sharjah airportand has got quick access to Dubai and fastcheck-in facility. Air Arabia is the only low-fareairline in UAE and the firstairline to introducethe low budget airline in Middle East and Northern Africasince 2004. After success stories of American and European low-costairlines Air Arabia modeled low fares on customized local preferences. They focused on their business mission by offering mostconvenient and frequent online booking as well as less expensive air fares in the market with better serviceand safety standards.
  • 8. Air Arabia's worthy scheme"Pay less. Fly more", enables customers to make smarttravel choice; those who can't afford and were hesitant to travel in the past, to start flying and those who traveled more frequently, benefiting both and vacation travels. Etihad Airways Etihad Airways firstcaptured the skies in November 2003, with only four member team organization. Now it stretched out to a family of over 2500 employees spread across region. Etihad airline has also reputed as the national airline of the UAE (Abu Dhabi) by a royaldecree of Sheikh Khalifa bin Zayed Al Nahyan (Presidentof UAE) with investment of AED 500 million. Compared to 2006, Etihad conceded more than 4.6 million passengers in 2007. Ithas also been designated as the World's leading New Airline two years in a row, in 2004 and 2005. RAK Airways The fourth national airline of the UAE is RAK Airways which was established under an Emiri Decree by Ruler of Ras Al Khaimah in February 2006 The core intention of RAK Airways is to give supportto the economic development of Ras Al Khaima. The development includes economic free zones to magnetize business as well as residential, leisure and tourism projects. This Airways function on charter as well as scheduled services so as to assemblethe demand of the various markets that the airline will serve. In a costsuccessfulmanner they providevalue for money to customers
  • 9. Emirate's competitive advantage To gain a competitive advantage amongst its competitors Emirates Airlines adopts differentiation generic strategy by contributing the top notch quality services. This is done to be the best company in the marketand to segregate fromits competitors. For illustration, the firstairline that offered TV screen for all classes was Emirates airways. Another instance, along with other airline company like Qatar Airways, Emirates airlines provided training courses by using the most modern machines, called plane simulator. This was a feather to the hat of Emirates airlines. The aim of such change is to be on top of the industry thus increase the awareness nationally and internationally which in turn increase the demand and the profit.
  • 10. 3) STRATEGICMARKETING FOCUS In this section weshall take a peek into mission, goals, core competencies and external and internal environments in regard to the Emirates airlines. 3. A - Mission "Offering consistently high-quality value-for-money serviceand to be the best airline on all of its routes". Emirates airline is determined to accomplish its mission by positioning itself as a long-termsustainable business providing valueto its customers, employees and investors.
  • 11. 3. B - Goals Discussing thegoals, they are states as below: Focusing on maximizing the overall Group’s return on capital. To be diverse and hence balance to the Group’s earning streams Take full advantage of the group’s competencies in market. Objectives Tangible objectives pertaining to the goals are : Retain and improvefrequent business class traveler’s marketshare. Increasemarketshare40% to 55% by end of 2009 Tap low costcarriers marketto achieve company’s return on investment. Promote Dubai’s Tourismactivities and introduce Dubai to the world.
  • 12. 3C- Values Emirates Airlines has valuable human resources as wellas a bunch of well qualified staff. The vice-chairman of the airline itself has more than 50 years of experience in the aviation industry. The airline also provides outstanding training to its staff and is devoted on improving their skills not considering the costs. In addition, Emirates Airlines is the international carrier of Dubai which is a politically stable area and has a strategic location especially for transit passengers. 3. D - Core Competencies Various key factors should be implemented to sustain airline companies’ achievement. Differentiation By providing advanced services airline companies tend to differentiate each other. For instance, the best way to invite customers and to distinguish the company fromcompetitors is by providing the aircraft with the latest technology, such as wide seats, e-ticketing, etc.
  • 13. Strong brand name By obtaining a strong brand name it is easy to build a baseof loyal customers. This guarantees that customers will stick with the strong brand name company and hence ignore any attractive offers coming fromother competitors. There are airline companies utilizing sometechniques such as offering a flyer mile to win a free ticket if the points were completed to retain their customers, Alliances As discussed earlier we are awareof alliance. By linking networks, alliance will allow different companies to sharetheir resources so as to build a wide base of customers, expand services and increasenumber of routes. Moreover, the outcome of this is in sharing experience and decreasing the operation costs. Relations with supplier To constructa strong relation with suppliers the Airline companies must emphasis by setting long-termcontracts. Such relations will be beneficial since this will keep them in the safeside even if there was any change in the pricing strategy in the future as there is a contractbetween them.
  • 14. 3.D - External Environment PEST Analysis for Emirates Political Political situations that affect the airline industry will be mainly wars and terrorism. For instance, due to the terroristactivities in different areas of the globe, namely in USA, Palestine, Iraq etc made these areas unpleasant for not justtourists but businessmen to travel. Economical One of the factors following the success of any airlines is to have the most sophisticated airports which are facilitated with cutting edge technologies to meet customer’s requirements. UAEhas major plans on investing to develop such international airports in Abu Dhabi and Dubai. The benefits are to enhance the economical growth, reduction on oil revenues, to increase the number of tourists plus thereby driving profits to airline firms. Social The population of the world is shooting at high rates. Thus the social factors also increase. For instance, the population is expanding in UAE, this there is because UAE is a multicultural country. As the expatriates number in UAE increase, the profit obtained by the airline company also increase.
  • 15. Technological New technologies affect this industry in negative and positivemanner. For example, the teleconferencing reduced the necessity for face to face business meetings. This reduced the number of businessmen traveling and hence the purchaseof business tickets. 3.E - InternalEnvironment SWOTanalysis for Emirates Strengths Member of Arab alliance ( Arab Air) FirstAirline Company to offer Internetbooking with various features and options. Self-Check in facility for customers in Dubaiand partner airports. Long-haulflights Dubaito New York Worlds largestpurchaser of Airbus by 2012 , booking 45 Airbus air crafts. Increasing employees devotion to work by providing training , rewards and performanceanalysis. Official sponsor of FIFA World Cup 2006. Skywards Miles FFP shared with many airlines including Sri Lankan airways
  • 16. Weakness Huge investment to purchaseair planes and implementing latest technologies there is high amount of operational cost. Emirates airlines fares are higher than traditional airlines. No global alliance membership for Emirates Airlines No permission to operate in Abu Dhabi , capital of UAE Opportunity UAE ‘s higher per cap income Governmentis disposing money to develop regional airports. High forecasted growth rate for UAE tourists Growth on population and internet usages lighten World and Dubai makes room for opportunity. Dubai Air shows helps to promote regional aviation industry. Threat Might face losses of around 5 billion due to soaring oil prices Aviation security expenses and insurancewill also increase operational expenses of airlines industry. Low cost carriers areanother threat for traditional airline operators.
  • 17. Information security vulnerabilities poses danger to electronic ticket system Natural disaster and acute diseases affect tourism In a nut shell, Emirates Airlines has strengths like new technology, such as e-ticketing and self check-in services. An evident weakness is the elevated prices of Emirates due to its huge investments in ordering aircrafts. Although it has opportunities like investments in Abu Dhabiairport there are many threats are concerning it, such as increase of oil prices, low cost airlines and the spread of killer diseases. 4- MARKETING PLAN 4.A - Target Market Over the last few years, Emirates Airlines is one of the air carrier, which barely felt the economic and airline down turn. Emirates Airlines is one of the airlines, which hardly felt the economic and aviation down-turn of the last few years. Emirates airlines marketsegment is divided into three major categories of customers
  • 18. 4.A.1 - UAE's Tourismand Business segmentCustomers Dubai's emergence as a regional business and tourismhub has provided emirates airlines plenty of roomfor growth and has fuelled regional air passenger traffic. The recent freehold ownership law has been a major reason for the attraction of tourists and business communities. Dubai aims to attract 15 million visitors by the year of 2010, the ruler of Dubai has emphasized about this on his strategic plan for the emirate of Dubai. The growth of the region especially GCC's is now started stimulating tourismand business sector and providing roomfor local airlines to further grow. According to World Travel and TourismCouncil (WTTC) Middle East accounted for around 2.4 % global travel and tourism activity in 2006, forecasting a growth of 5.9 % for the coming years. Emirates should plan to take advantage of this boom for increasing their passenger traffic.
  • 19. 4.A.2 - Expatriates in UAE UAE world's 5th largestCrude Oil exporter and Dubaiworld's fastest growing city has created huge demand of skilled and unskilled workforceto feed its booming economy and emerging labor market, the highly paid labor marketis a major attraction for the various work forcearound the world. The overall expatriate population of the country equals 80% of its total population; the national emirate population is 20% of the total population. United Arab Emirates has got large amount diversepopulations in the Middle East. As per the 2006 censes the total population of UAE is 4.2 million consisting of the national emirate(20%) , other Arab and Iranian (23%) , South Asian (50%) and other (8%) constituting Westerners and east Asians. The diversity of this population enables emirates to plan their route all around the world; emirates have reached mutual agreement with almost all the national authorities around the world to operate in. Dubaioperates in an "open sky" policy, which allows any carrier to compete with Emirates airlines.
  • 20. 4. A.3 - Transitpassengers Dubai is the operational hub for Emirates airlines, the best positioned connection point between Europeand Asia/Australia has supported the growth of emirates airlines. Emirates airlines has been using this "connection point" in favor of promoting their business especially transit passengers, thewell established and marketed wide range network enables Emirates Airlines to prosper in this particular segment. Emirates airlines presently operates 87 cities in 59 nations around the world (still growing). Additionally to accommodate the growth in the sector Dubaiairport authorities are invested $4.1 billion in the expansion of DubaiAirport, The "Fly Emirates "caption is well known to the world and attracting customers fromaround the world. 4. B - Intended Strategies Airline industry achieved in the mature stage and there is a tough competition between various operators. According to the analysis of external and internal factors each airlines uses offensivestrategies to securetheir position on market. Emirates adopts below marketing strategies to operate business efficiently.
  • 21. 4. B.1 - Market Penetration (Improving In-FlightServices) Business focuses on selling existing products to existing markets drives growth strategy for Market Penetration. 1) Retain and boostmarket shareof Emirate airlines productand services 2) Protect market dominanceof Emirates airlines existing markets. 3) Driving out competitors by restructuring maturemarket. 4) Enhance usageof existing passengers Enabling passengers to make voice and data call over aircraft’s telecom system Tele-communication is vital element in everyone daily life, So communicating with others while on airplane would be very good value added servicecan provideby Emirates Airlines. This can be done by adding some infrastructuralchanges on aircraftto communicate and partnership with telecom provider who can assistdeploy. Currently Emirates uses high expensive tele-communication method to make voice calls and internet, instead can deploy new systemto make voice and data calls fromtraveler mobile phonevia trusted telecom providers.
  • 22. Passenger’s mobilephone should be beam signal to the ground satellite systemand fromImmarsatwhich is already installed on mostof the Emirates airplanes. Similar service, “On Air” is being developed by Airbus SAS and air transport ITserviceprovider SITA. Early of this year British carrier BMi and TAP-Air signed on to offer OnAir’s voiceand text messaging services for European flights. 4.B.2 - Marketdevelopment: (Extending New Routes) Deploying current services into new markets where company seeks to sell its products into new areas. Possibleway to achieve this strategy by launching existing services into new geographicalarea or new market segments. Emirates Airline’s objective is to build up Dubai into a widespread aviation center that will finally serveas an important universallong haul hub. It provides an alternative to the traditional European airline hubs like Heathrow Airport(London), Charles De Gaulle (Paris) and Schiphol (Amsterdam). Theairline heavily promotes Dubaias a destination, offering reduced hotel rates as well as insight into events like the Dubai Shopping Festival, hoping to attract more visitors to the city.
  • 23. Adding new routes and destinations are suggested , especially there is growth in UAE tourism. Major regions are not operated by Emirates Airlines and haveto extend someof the destination world-wide(especially attractive areas) As always, the airline conducted road shows and press conferences to announceits entry into a new city. These events allow travel agents, tour operators and local airline personnel in contact and gain information about Emirates’ new routes, holiday packages and other benefits. After establishing a route to the country’s economic hub – Shanghai– the airline offers passengers a chanceto visit the epicenter of China’s political and cultural activities. Itis China’s richest city in terms of historical value and has a heritage that dates back over 3000 years and houses marvels as the Forbidden City, the Great Wall of China and the Ming Tombs The success of Dubai as an intercontinental hub has been facilitated by airlines such as Emirates. The geocentric natureof Dubai has become incredibly important. Now there are hardly two points on the globe where it is not logical or possibleto use Dubai and connect any two cities, and usually it is a pretty direct route.
  • 24. 4.B.3 - ProductDevelopment (PrivateSuite) Introducing new services into existing markets implies product development. This strategy involves the development of fresh competencies and requires business to expand customized services which can apply to currentmarkets. Since Dubai is a hub for all international business travelers this is high time to introduce new productto cater top level business executives. Imagine the CEO of multi-national company makes lengthy overseas journey to attend a board meeting that could have a major impact on the company financials. Of course, company wants CEO to be top of his game, rested, refreshed, relaxed and ready. The cost of CEO’s air travel is doesn’tseem so expensive after all. That’s why Emirate Airlines introduce high quality first class privatelounges to attract business travelers. This premiumclass private suite would be fully outfitted with personalstorage, coat cabinet, desk and individual mini bar. Long seat reclines to become fully horizontalcouch and the 21” wide screen entertainment over 500 channels. Exceptional level of personal services including a la-carte gourmetcousins and wide-ranging wines provided by specially trained multi-lingual cabin crews are the other value addition for this product.
  • 25. 4. B.4 - Diversification: (Low-costcarrier) Diversification is a strategy, wherebusiness sells new services into new market segments. Diversification is more risky strategy due to limited experience on particular new marketareas. After the success stories of European low cost carriers, Middle East operators also started eyeing to explore new marketing concepts of "Frills- free" fly. The global low cost carrier sector is growing at more than three times the averageindustry global rate, with justunder 50 million seats on 342,000 LCCservices offered worldwidein January 2007, up 17% and 15% year-on-year, respectively. Low cost carriers areairlines that offer lower fares than traditional network airlines by eliminating certain complementary passenger amenities generally offered by traditional airlines. The key opportunity for low cost carrier lies in passenger fareelasticity, low air transportpenetration rates and substation of traditional modes of low-costtransportsuch as trains and buses. Air Arabia dominates exclusively to this low costcarrier service in UAE, Emirates Airlines mustdecide how to respond this threat posed to the large expatriate market in UAE. Among the options considered there is scopeto introduce low-costsubsidiary of Emirates Airlines.
  • 26. Emirates Airlines be supposed to diversify slightly fromcurrentmarketing objectives to acquire low costair travel market shareand to retain its customer base of UAE expatriate market. This can be done launching new subsidiary to cater budget airline market. Key routes should be according to the high demand and large number of expatriate's home country like Egypt, India and Pakistan. Under the arm of Emirate Airlines, new budget airline subsidiary has to introduce to new Al-MakthoumInter-nationalAirportbeing constructed in Jebel Ali, located on Dubaiborder. This will provideresidents of Dubai and Northern emirates enhanced travel option to neighboring destinations. Emirates Airlines is placing lease order of for 200 aircraftand to be operational by 2009. Thecarrier is expected to use Airbus A320 or a Boeing 737 on lease basis for the firstfew years prior to acquiring ownership status. Similar practices already succeeded the case of Kuwaitairways and they implements the strategy of modifying marketing mix by beginning a low- cost carrier called "Al-Jazeera" in order to enhance its passenger baseand loyalty and boostin sales. Business strategy over Ansoff’s growth matrix Ansoff’s product/marketgrowth matrixprovides for a business tends to grow depend on whether it sells new or currentservices in new or current markets. New products and new markets could relate to current products and currentmarkets or may possibly distantand discrete. The result fromthe Ansoff’s product/marketmatrixis chain of recommended growth strategies that set the road of business strategy.
  • 27. Figure: - Ansoff’s growth matrix 5 – EVALUATION After marketing plan is implemented, it should be evaluated. Evaluation entails gauging the extent to which marketing objectives have been achieved during the specified time period. Below table demonstrate effectiveness of marketing strategies and counter-measureto improve/replace currentplan. Improving In-FlightServices Success criteria of deploying a systemto allow passenger to usetheir mobile phones to use voice and data communication is to increasemarket penetration. Itcan be measured in terms of voice and data usageand growth of marketpenetration. There is not corrective action plan if it fails to respond.
  • 28. Extending new routes New destinations are implemented to achieve market development. Flight occupancy is the best way to measureresult of this strategy. Itneeds to re- discover new destination if the flight occupancy level is lower than expected. FirstClass Private Suites It’s a new productof Emirates Airlines and can be measured the success of the productlaunch. Quantitative measurementof this productwould be number of booking or occupancy. If it fails to respond, correctiveplan is to reduce the price of ticket but again this is not price sensitiveproduct and cannot be achieved by price reduction. Budget Airlines Success criteria would be capturing new customer base for the airline .Since its separate operating entity we can gauge financial results of operating profit would be good measureto evaluate the success of budgetairline subsidiary. Effectiveness should be identified through external marketing auditor or agencies. A marketaudit helps management allocate marketing resources efficiently. Market audit should be comprehensive, systematic, periodic evaluation of the objectives strategies, structureand performanceof the marketing organization.
  • 29. 6 – IMPLEMENTATIONPLANS & BUDGET Strategy # 1 (MarketPenetration) Strategic Program Deployment a systemto passenger to makevoice and data call fromtheir mobile phones Implementation Tasks Technical Study Feasibility Study Partnering strategic alliance with telecom serviceproviders. Installation of systemon aircrafts Marketing concepts to the audience
  • 30. Responsible Chief Technology Officer Vice President – Finance General Manager – Marketing Time Scale New servicelaunch would be 1st January 2009 Cost Factors Approximate Budget 150,000 for each aircraft Marketing Budget 150,000 Strategy # 2 (MarketDevelopment) Strategic Program Operating new routes and destinations Implementation Tasks Researching market gap to operate new routes Feasibility Study Partnering hotels and touristinstitutions at new destinations Partnering strategic alliance with local airports to operate Marketing new routes to the target market
  • 31. Responsible Vice President – Finance Vice Present - Operations General Manager – Marketing Time Scale Four new routes are added every quarter starting fromJanuary 2009 Cost Factors Additional capital investment for new aircrafts USD 200 million Marketing budget for each route 0.5 million Strategy # 3 (Product Development) Strategic Program Introducing new FirstClass PrivateSuite Implementation Tasks Technical Study Feasibility Study Installation and modification of aircraft’s onboard faclilities Marketing concepts to the audience Responsible Chief Aircraftofficer Vice President – Operations Vice President – Finance General Manager – Marketing Time Scale
  • 32. New servicelaunch would be 1stJanuary 2009 Cost Factors Approximate Budget 300,000 for each aircraft Marketing Budget 150,000 Strategy # 4 (Diversification) Strategic Program Low cost carrier subsidiary Implementation Tasks Market Study Feasibility Study Leasing and buying used aircraftfor operations Deploying new set of human resources for this subsidiary Developing Marketing force for the new target customers Marketing concepts to the audience Responsible President Chief Executive Officer Time Scale Mid of 2009 Cost Factors Approximate Budget USD 500 million
  • 33. Conclusion Traveling around the world will always remain as a special interest in the hearts of the people. Hence they are and will be in search for the best for themselves. This will increase the need for better safety as well. Hence it becomes the responsibility for the airline company to deliver their best in terms of services & security to their customers. Emirates airlines have always been on top of the airlines list in the UAE. We know UAE is a country with differentethnic groups, and Emirates is the only airline in the country which suits these various cultures. But today as the number of the airline company is increasing there is immense pressure on Emirates airlines to keep up their fame and glory. A strong strategy has been studied and adopted to put words into action. Therefore Emirates with its unique qualities, untiring services and promising strategy will be able to improve in delivering the best efforts in a country like UAE having a mixture of different cultures hence keep their motto fly high!
  • 34. 8 – ANNEXURE Annexure (1) Operating Statistics of Emirates Airlines Annexure (2) Emirates Revenue
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