8.
Pricing Strategy
Because of skyrocketing energy costs, the company is already operating on razor-thing profit margins. Therefore, the company's general pricing strategy that is associated with the marketing initiative envisioned herein, "Llevar a un amigo" ["Take a friend"] will remain unchanged from current practice, but the content will offer Hispanic consumers in the targeted areas with the opportunity to purchase two tickets to their destination of choice for the price of one. This will allow the 100 lucky winners to take a friend or loved one wherever they want to go, and will still generate revenues and additional interest in the company's full-service offering.
9.
Summary and Implementation Plan
The research showed that the airline industry is fiercely competitive and Continental faces competition from American Airlines, Delta Airlines and U.S. Airways in the full-service category, as well as increasing competition from low-cost carriers such as Southwest, JetBlue and AirTran. The implementation of the marketing initiative envisioned herein should therefore proceed before spring break 2011 in order to generate interest from the Hispanic traveling public, many of whom will likely be traveling during this period.
References
About us. (2011). Continental Airlines. Retrieved from http://www.unitedcontinental holdings.com/.
Butcher, D. (2009, October 28). Mobile Marketer. Retrieved from http://www.mobilemarketer.
com/cms/news/advertising/4508.html.
Continental advertising. (2011). Continental Airlines. Retrieved from http://www.continental.
com/web/en-U.S./content/company/advertising/commercials.aspx.
Flouris, T. & Walker, T.J. (2005, March). Financial performance of low-cost and full-service airlines in times of crisis. Canadian Journal of Administrative Sciences, 22(1), 3-21.
The world's leading airline. (2011). Continental Airlines. Retrieved from http://www.united continentalholdings.com/documents/FactSheet.pdf?file=united_factsheet.pdf&type=pdf.
Company profile. (2011). Yahoo! Finance. Retrieved from http://finance.yahoo.com/q?s=
ual&ql=1
Form 10-Q quarterly report. (2010, October 21). EDGAR online. Retrieved from http://biz.
yahoo.com/e/101021/ual10-q.html.
Appendix a
Key Statistics
Frequent Flyer Program
Mileage Plus
OnePass
Mainline Fleet Facts
Total Operating Mainline Fleet: 359
Total Operating Fleet: 348
Narrow-body
• Airbus A320 family: 152
Operating Brands
• United Express®
• p.s.(sm)
• United Cargo (sm)
• United Services
• Continental Express
• Continental Connection
• Continental Cargo
Other Partners
• Aer Lingus
• Emirates
• Gulfstream International Airlines
• Hawaiian Airlines
• Island Air
• Jet Airways
• Qatar Airways
• TACA Group
• Aeromar
• Amtrak
• Cape Air
• Copa Airlines
• Copa Airlines Colombia
• Emirates
• EVA Air
• Hawaiian Airlines
• Island Air
• Kingfisher
• Virgin Atlantic
Contracted Regional Carriers
United Express
• Atlantic Southeast Airlines
• Colgan Air
• ExpressJet Airlines
• GoJet Airlines
• Mesa Airlines
• Shuttle America
• SkyWest Airlines
• Trans States Airlines
Continental Express
• ExpressJet
• Chautauqua Airlines
Continental Connection
• Cape Air
• Colgan Air
• CommutAir
• Gulfstream International Airlines
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One-to-one marketing allows premium pricing as well as increased sales volume to particular unique micro markets. Studies show that as customer satisfaction and loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value that other alternatives do not provide (Giddens, 2002). Long-haul international business travelers and short/medium-haul domestic business travelers are the customers that
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