Marketing StrategyIntroduction (Section One)Marketing strategies is a process by which a company or an organization concentrates its limited resources on the opportunities available with the aim of maximizing on profit and other benefits thereby sustaining competitive advantage. The company concentrates on customer satisfaction in order to sustain already acquired customers and attract more. The pricing, distribution and promotion strategies adopted have a great impact on the success of the company. It is through the marketing strategy that the target market and resource allocation are determined. According to Keith (1994), there is need to line the company’s marketing strategy with the company’s mission statement. Air Bus: Background InformationAir bus is a company dealing with transportation of Europeans.
It began as a result of a need expressed by the air forces in the European countries. It provides employment for a very large number of people. It serves countries such as France, Germany, Spain and China as the areas where final assembly of their production takes place. The company has been progressing day by day with the sales continuing to increase. However, the company did not pick immediately it was formed.
Its success has taken determination and a change in the approach strategies for marketing and management. After the consultations through which it was founded, it did not attract customers in the first 18 years. According to Herman (1965), this could have been due to overestimation and the poor marketing strategies. The existence of Airbus can be traced back to the invention of jets. The first largest airplane was A380. It was discovered that the airplane had excessive condensation and cabin temperatures were varying and hence required tweaks to the ventilation system.
The goal of coming up with such an airplane was to fly more persons far more comfortably than the aging Boeing 747. The development of the Air bus is as follows: (Del, 1996)This report is aimed at identifying the marketing strategies that made Air bus to succeed despite its failures in the past. It will also look into the possibility of the company succeeding in the future with the rising competition for the market. It also looks at special characteristics that make the company an outstanding company despite the challenge and the competition it faces from Boeing.
AssumptionsThe report assumes that all factors will remain constant in the future. It does not consider emergencies that can occur such as accidents. It assumes that the business strategies applied are the only determinant of the success of the company. The results predicted by this report can only be a reality if the company maintains its standards of operations. It assumes that customers will be attracted to using services provided by Airbus and that there will not arise any other company offering better services than Airbus.
A fourth assumption is that the company will operate independent of political influence. Problems that Faced AirbusThe launch of the Air bus company was marred with a lot of challenges. Since the decision to design the postulated planes was shared by a number of European countries, each of the countries seemed to hold their own interests. A number of countries threatened to abandon the project on claims of the implicated costs. The design of the very first model of aircraft was very costly an aspect that called for various consultations between partner countries.
A number of aspects implicated in the design of the first model of the aircraft made the partner countries to loose interest and at the same time doubt the outcome. The expected swift with which the project was hoped to work and deliver seemed unsuccessful. This came with the failure of the expected ordering implicated in the MoU. Most of the partner countries had invested with the hope of selling a total of a bout seventy five planes within the very first few months.
The project survived on very minimal support by a few partners. One company contracted for a number of technical developments that was also a partner in the development of the Airbus seemed to hold its own interests as well. It was learnt along the way that this company was more concerned with the design of other models already in existence than the Airbus. This is a factor that greatly threatened the departure of France from the project.