Verified Document

Net Jets Research Paper

NetJets The two primary attributes that NetJets relies on are convenience and quality, including safety of the jet aircraft (Infanger, 2007) from maintenance through its operation. The following is a graphic of these two attributes relative to competitors.

NetJets Comparison Quality vs. Convenience

TARGET MARKETS

NetJets segments its markets geographically with NetJets U.S. And NetJets Europe being the primary segmentation criteria (Salter, 2005). This geographic segmentation is based on the needs for logistics to be more aligned with the needs of their fractional aircraft owners. In the past NetJets supply chain throughout Europe was the cause of dissatisfaction, therefore the company created a separate European subsidiary (Foust, 2007). Earlier this year, in April 2008 the company also announced a spin-off subsidiary to sell into the Indian market as well, relying on the European supply chain for this specific new market development strategy (Govindasamy, Sarsfield, 2008).

In addition to these geographic segmentation criteria, NetJets also differentiates by Corporate vs. Individual accounts. According to published data on their distribution of customers by segment, 70% of customers are Corporate Accounts, and 30% are from Individual Accounts. Of these Corporate Accounts, General Electric (Infanger, 2007), and from the Individual Account segment, Tom Brady, member of the New England Patriots, is one of their major spokespersons and clients.

The primary product categories of the NetJets Corporation are the company's Fractional Aircraft Ownership Program, most often used by their Corporate Customers, and their Marquis Jet Card, a second service offered for small businesses and Individual accounts. Growth...

The Fractional Aircraft Ownership is best for those corporations that require at least 50 hours or more per year, with less than 3 hours notice and the need of jet service during peak periods of the year. It is not surprising that many national and international retailers including Federated Stores, Wal-Mart, Tesco and other global mass merchandisers. The Marquis Jet Card is for those customers who less than 50 hours per year and prefer a short-term commitment. This is also considered an introductory service for Corporate clients as well. While the NetJets Fractional Aircraft Ownership Program has 5 large cabin jets including two Gulfstream configurations and the Boeing Business Jet which is a modified 737, the Marquis Jet Card offers only two large cabin jets, the Gulfstream 450/400 and Dassault Flacon 20000EX. The Marquis Jet Card also is sold in a $250,000 increment of Individual Account Holders who want to gain access to the Boeing Business Jet for their specific needs. NetJets did this to segment out their top 100 Individual Accounts, and the program has been so successful that an aftermarket has begun to emerge with the resales of these $250,000 memberships for $500,000 or more. The following is a product/market grid of NetJets services offerings:
Product-Market Grid

Markets

Fractional Aircraft Ownership

Marquis Jet Card

Corporate

Designed for accounts who need over 50 hours of jet service per year;

Supported with 5 light cabin; 5 midsize cabin and 5 large cabin jets; designed to allow for short…

Sources used in this document:
References

Dean Foust (2007, January). ONE JET, 16 OWNERS, BIG PROBLEMS:NetJets, Flexjet, and other fractional operators have severge growing pains. Business Week,(4019), 38. Retrieved September 27, 2008, from ABI/INFORM Global database. (Document ID: 1203125601).

Siva Govindasamy, Kate Sarsfield. (2008, April). NetJets link-up targets lucrative Indian market. Flight International, 173(5132), 25. Retrieved September 24, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1465608741).

John F. Infanger (2007, March). NET JETS POISED FOR GROWTH. Airport Business, 21(4), 18-19. Retrieved September 27, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1240232741).

David Learmount, Murdo Morrison, Kate Sarsfield, Graham Warwick. (2006, May). Jet Aviation launches franchise. Flight International, 169(5035), 36. Retrieved September 27, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1048947371).
Cite this Document:
Copy Bibliography Citation

Related Documents

Jet Blue in Recent Years,
Words: 1197 Length: 4 Document Type: Case Study

This came as result of the firm's cost-cutting efforts after it lost $85 million in 2008 amid the start of the downturn and skyrocketing fuel prices. The company had also turned a profit in 2007 (MSN Moneycentral, 2010). Clearly, the company has been able to adapt to its circumstances and meet its financial objectives. Revenues, however, shrunk in 2009, no doubt as the result of cutting routes in order

Jet Blue Airways
Words: 2060 Length: 5 Document Type: Term Paper

Jet Blue Airways Corporate Background JetBlue Airways Corporation, incorporated in August 1998, is a low-cost passenger airline that provides customer service at low-fares mainly on point-to-point routes (Yahoo, 2005). As of February 10, 2005, the airline operated a total of 280 daily flights. JetBlue focuses on serving markets that have long been underserved and large metropolitan areas that have had high average fares. The airline serves 30 destinations in 12 states, Puerto

Jet Blue Vincent One Can Call Jet
Words: 2521 Length: 6 Document Type: Term Paper

Jet Blue Vincent One can call Jet Blue an airline with a vision, and in terms of pricing, the only airline that it can be compared with is Southwest Airlines. The founder of this airline had the confidence to take on the entrenched airlines and he had only one desire to prepare and that was to create a low-cost, high-service airline that passengers wanted to fly in. One of the aims of

Global Fighter Jets Marketing Plan Marketing Vision
Words: 2490 Length: 8 Document Type: Essay

Global Fighter Jets Marketing Plan Marketing Vision Global Fighter Jets is poised to provide customers with high-edge military aircraft specifically to combat fighter jet. Our marketing efforts will be geared towards customer's reassurance that we are the first when searching for military fighter jet such as F-35 fighter in Israel. Our key to success will center on the marketing strategy that we will implement, and our marketing strategy is the marketing mix

History of the F-16 Fighter Jet
Words: 670 Length: 2 Document Type: Term Paper

F-16 Fighting Falcon is a compact, multi-role, extremely maneuverable fighter that is suitable for air-to-air combat as well as air-to-surface attacks. It has a combat radius (the distance the jet can fly to combat and return safely) of 500 miles, which is superior to that of other fighter aircraft. The pilot has unobstructed vision both forward and upward through to the bubble canopy. It is a precision attack aircraft and

Proposal for Corporate Aircraft
Words: 1965 Length: 6 Document Type: Research Proposal

Replacing the Current Mode of Commuting by a Share and Own Aircraft It is true that the executives of Acme manufacturing with the HO at Akron, Ohio are in need of commuting to remote sites at Chicago -- ORD, Seattle and Miami -- MIA and is a weekly affair at least for seven executives who have to travel to these satellite locations. The basic problems are that unjustified costs for

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now