Nonetheless, 1 Time is fighting the good fight of customer service and delivering value at their price points (Mantshantsha, 2007).
Of all aspects of the company's marketing mix, this one is struggling the most as it strives to capture more of the business traveller market. The promotional strategies are tied to the company's website and to limited direct marketing through social networks, yet is weak at defining a connection between the extensive MRO strengths the company has and the ability to translate that into customer value. The lack of connection between the reliability base the company has and the success of its business travellers is a major weakness in the promotional strategy.
On the place dimension of the marketing mix, the company has made excellent decisions about choosing secondary airports that are low-cost to lease gates at and to base its operations at OR Tambo International Airport. This is the one aspect of the marketing mix that will change over time as additional flights are added. For the time being, this variable communicates the unique value proposition of the company well, and shows it is focused on serving this specific market niche.
5. Give a full spectrum of segmentation variables, describe how 1 Time has segmented the airline market. (10)
The company has segmented the market first by geography and second by price sensitivity. This strategy will work well in the short-term yet the development of more specific segments is going to be needed for the company to grow over time. The launch of 1 Holidays last fiscal year and the initial success in selling to business travellers is the right direction to take segmentation....
S. are seeing modest improvements in economic indicators. The social environment is favorable for air travel. The mode still holds tremendous cachet with consumers and is favored when consumers can afford it. There is some consideration that the airline business is a major contributor to greenhouse gases and therefore global warming, but as of yet the industry has not come under serious public pressure as it is generally viewed by the
Foremost, they must be offered numerous training programs, which are both for the benefit of the employee (increases his confidence) as well as for the organization, which, through investing in its human resource, will be able to offer services at superior quality standards. However an affective culture is not desirable within a professional business environment, the employees should be encouraged to address any complaints or dissatisfactions. In addition, the company
Classic Airlines Case In the early 20th century two young men by the names of Orville and Wilbur Wright made what some argue as the greatest transportation invention ever discovered outside of the automobile. This 50 pound glider with a wingspan of approximately 17 feet would revolutionize the manner in which humans across the world would travel. In fact, this 12 second flight was so instrumental, that the Wright brothers will
Southwest Airlines Case Analysis Southwest Airlines is a company that has grown from a small regional carrier in Texas and surrounding states to the largest U.S.-based airline. The primary strategy of the company is to be the low-cost, no frills option for people wanting to travel within the United States. Recently, Southwest acquired another carrier so they will soon begin international flights to the Caribbean and Mexico. This paper discusses the
Airline Fares First off, I am compelled to suggest a caveat. There have been times when my dry cleaning bill has exceeded the cost of my ticket to fly. I have been singularly struck with the inappropriateness of that disparity. Airfare has become commoditized -- travelers expect an extraordinary service and convenience for a small price. Consider the cost to travel a distance equal to that attained in a flight by
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