The paper "Marketing Management That Etihad Airways Has Adopted" is a perfect example of a marketing case study. Etihad Airways is a United Arab Emirates airline founded in 2003 (LLC Books 2010, p. 11). Abu Dhabi-based has emerged as one of the fastest-growing airlines in the world. The airline flies both Boeing and Airbus airplanes with a fleet size of 128 (Etihad Airways 2016). Etihad operates both passenger and cargo services and is the second-largest airline in the UAE. The company currently flies in more than 120 destinations in 90 countries across Asia, Europe, America, Africa and Australia.
The airline is also one of the major employers in the UAE has more than 20,000 employees as of October 2015 (Oxborrow 2016). In 2015, Etihad Airways reported revenue totaling $9.02 billion and an after-tax profit of $103 million. The success of Etihad Airways is largely attributed to effective marketing management that the airline has adopted over the last 12 years of its existence. This report investigates the marketing management that Etihad Airways has adopted. In so doing, the report will begin by analyzing the airline’ s branding and innovation strategy using Brand Architecture– Brand Relationship Spectrum and Blue Ocean Strategy (BOS) models.
The second part of the report will analyze the macro-environmental factors that affect Etihad’ s operations in the UAE. The third part of the report analyzes the marketing mix of the airline. The fourth part of the report will analyze how Etihad understands its consumers and the buying behavior of the airline’ s consumers. The report will also highlight how the segmentation, targeting and positioning of the airline, as well as analyze the integrated marketing communication (IMC) mix of the airline. Analysis of the Etihad’ s Branding and Innovation Strategy Blue Ocean Strategy Blue Ocean Strategy is one of the models used by managers in analyzing the branding and innovation strategy of a company.
The model was developed by W. Chan Kim and René e Mauborgne in which they noted that firms have the tendency to participate in head-to-head competition in a bid to achieve sustainable growth and profit (Kim and Mauborgne 2013, p. 3). However, W. Chan Kim and René e Mauborgne noted that, in the modern day’ s overcrowded markets, head-to-head competition leads only in a bloody red ocean as rivals fight for the market share.
As such, sustainable success is only achieved not through competition, but by creating blue oceans of unexploited new markets opportunities that are ripe for growth. Etihad Airways have engages in head-to-head competition particularly with Emirates Airlines for the market share (Bloomberg 2016). However, to achieve a competitive edge over Emirates, Etihad has in recent years invested in technological innovation by investing in environmentally friendly technologies and branding itself as an eco-friendly airline. Source Kim and Mauborgne (2013) Brand Architecture– Brand Relationship Spectrum Source: Davis (2010) Most companies, especially those in the airline industry face high pressure to leverage their brand assets due to the prohibitive cost of developing a new brand.
In order to overcome such challenges associated with brand creation, a new model called “ brand architecture” which refers to an organizational structure comprising of the brand portfolio, showing the roles of the brand and the relationships between brands (Davis 2010, p. 63). The brand relationship spectrum is an example of brand architecture that helps strategists subtly endorse brands, sub-brand and their alternatives.
In line with the brand relationship spectrum, Etihad recently rebranded itself by introducing a new design concept dubbed “ Remarkable” that involved the introduction of a new design to the airplane consisting of colors that resemble the sand dunes in deserts appearing in different lighting conditions (Landor 2016). The innovative and new brand introduced by the airline exudes an aura of luxury and exclusivity, which promises to communicate to the airline customers at every touchpoint.
Bloomberg 2016, Want to fly in Etihad’s lap of ultra luxury?-Here is how. The National 27 July, viewed 18 August 2016 http://www.thenational.ae/business/aviation/want-to-fly-in-etihads-lap-of-ultra-luxury--heres-how
Books, LLC 2011, Airlines of the United Arab Emirates: Emirates, Etihad Airways, Emirates SkyCargo, Air Arabia, Daallo Airlines, RAK Airways, Flydubai, RUS Aviation, Falcon Aviation Services, Kang Pacific Airlines, list of airlines of the United Arab Emirates, Maximus Air Cargo. General Books, New York.
Cole, A 2013, Analysis of the Etihad Airways. GRIN Verlag, Berlin.
Davis, J. A 2010, Competitive success, how branding adds value. John Wiley & Sons, Hoboken.
Etihad Airways 2016, Etihad Airways announces additional A380 service to New York’s JFK airport in response to strong passenger demand, beginning June 2017, viewed 18 August 2016 http://www.etihad.com/en-us/about-us/etihad-news/archive/2016/etihad-airways-announces-additional-a380-service-to-new-yorks-jfk-airport-in-response-to-strong-passenger-demand-beginning-june-2017/
Heritage 2016, United Arab Emirates: 2016 Index of economic freedom, viewed 18 August 2016 http://www.heritage.org/index/country/unitedarabemirates
Kim, W. C., & Mauborgne, R 2013, Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Harvard Business Review Press, Cambridge.
LLC Books 2010, Airlines established in 2003: Etihad Airways, Adam Air, Tiger Airways, Jetstar Airways, Airblue, Air Norway, Kingfisher Red, Air Southwest. General Books LLC, Cambridge.
Landor 2016, Etihad Airways rebrand results in 17 percent growth, viewed 18 August 2016 http://landor.com/news/etihad-airways-rebrand-results-in-17-percent-growth
Oxborrow, I 2016, Etihad to help take your Ferrari, Porsche and Lamborghini supercars on holiday. The National, 4 July, viewed 18 August 2016 https://t.co/qzPrqhphDz
Taneja, N. K 2016, Airline industry: poised for disruptive innovation? Routledge, London
The National staff 2016, Etihad and Etisalat lead field in BCG’s Global challengers annual rollcall, The National, 7 August, viewed 18 August 2016 http://www.thenational.ae/business/economy/etihad-and-etisalat-lead-field-in-bcgs-global-challengers-annual-rollcall