The Emirates Airline Marketing Strategy - Case Study Example

The Emirates Airline Marketing Strategy by Course: Tutor: University: Department: Date due: Market segmentation within Asia Asia-Pacific region is mainly a low cost segment thus the need to focus on passengers who are interested with low cost fare and those that are driven by quality of service. In Asia-Pacific region, there are number of low cost airlines that compete for a wider niche. Some of these airlines include Virgin Australia, Malaysia airline, Singapore Airline, Air Asia, and numerous other airlines. This validates the need to segment Asia on costs as well as quality of services. Types of marketing Sponsorships Emirates airline has not only been committed to sponsorship in the United Arab Emirates but also in other parts of the world. The airline has a long history of sponsorship stretching from 1987 when it sponsored the first powerboat race in Dubai. As a marketing strategy, sponsorship presents an opportunity for Emirates to connect with target customers. His Highness Sheikh Ahmed bin Saeed Al Maktoum, the airline’s Chairman and Chief Executive, believes that sponsorship permits Emirates to share and support interests of the passengers as well as tighten the bond between the airline and the passengers (Emirates, 2014). Cognizant of the fact that football is a global sport; the Emirates acquired sponsorship rights with governing institutions and football clubs. By sponsoring FIFA, Emirates has been able to connect with global fans through FIFA World Cup, the FIFA Women’s World Cup, and the FIFA Club World Cup (Clark, 2011). The airline has further registered its presence in Asia by collaborating with Asian Football Confederation. In Europe, Emirates sponsors AC Milan, Real Madrid, Paris Saint-Germain, and Arsenal. Besides, Emirates signed a naming rights deal with Arsenal Football Club to name the new stadium as the Emirates Stadium (BBC, 2004). An eight-year shirt sponsoring deal starting from 2006/07 was also signed. Other sports supported by Emirates include rugby, tennis, motorsports, horseracing, golf, cricket, and sailing. Apart from sports, Emirates has shown commitment to the development of arts and culture around the world. The airline has collaborated with Emirates Airline Festival of Literature, the Emirates Airline Dubai Jazz Festival, the Dubai International Film Festival, and other institutions to promote economic and cultural development of UAE (The Emirates, 2014). There is no doubt therefore that sponsorship is critical to the success of Emirates airline marketing strategy. Product Emirates airline is always improving the design, technology, and quality of its fleet in order to meet the changing needs of customers. Currently, it is among the companies that operate the youngest fleet in the world. To ensure that customers are comfortable, Emirates airline constantly upgrades the aircraft. The Emirates A380 is one of the latest fleet operated by the airline. The First Class of the airline has private suites and shower spas while the Business Class is suited with flatbed seats. In the Economy Class, there is an extra room and custom lighting. The entire aircraft as well has inflight Wi-Fi. It is therefore apparent that Emirates A380 has features that are similar to a private jet. Besides Emirates A380, the airline runs Boeing 777-300ER, Airbus A340-500, Boeing 777-200LR, and several other aircrafts (Emirates, 2014). The design of all Emirates fleets is such as to offer superior flight experience to all customers. Aware that customer comfort is essential to success of an airline, Emirates invested in inflight entertainment that allows customers to control the system. While flying, a passenger can be updated on the latest news through BBC news and inflight information systems. Wi-Fi, mobile phone, in-seat SMS, and email system give the passenger an opportunity to communicate with friends, family, colleagues, and business partners. As part of entertaining passengers, the Emirates airline has installed systems such as movies, music, interactive games, and episodes of favourite TV shows. Similarly, the seating is designed to make the entire journey comfortable i.e. private suites, flatbed, and extra space in all cabins. In terms of dining, Emirates airline has made substantial effort to present fine cuisine prepared by leading chefs. Depending on passenger class and needs, wines, beverages, food, and on-demand dining are presented in a manner that satisfies the passenger. These are some of the reasons that contributed to Emirates rating as as the world’s best airline in 2013 during the World Airline Awards (Skytrax, 2014). Across the six continents, Emirates airline offer dedicated and partnered lounges in international airports. Access to the Emirates lounge, Dubai Airport lounge, and Partner lounge means that a passenger can spent some few minutes attending to some personal matters i.e. have a delicious meal, take a shower or just to relax. As a complimentary service to first class and business class travellers, emirates offer chauffer-drive in over 55 cities where Emirates operates. Finally, the Emirates launched the Young Flyers program in order to support families that travel with their children who require special attention such as priority boarding, changing tables, and other complimentary services. People The success of the Emirates airlines is credited to management’s role in enhancing a shared goal. Employees in the Emirates airline are aware that their commitment to improving the airline services has contributed to competitive edge currently experienced by the company in all the areas of operation. The airline considers corporate citizenship, social responsibility, and business ethics as critical ingredients for excellence in airline industry. In order to attract the best workforce, Emirates airline has a range of excellent benefits such as generous profit scheme, and career development program (The Emirates, 2014). Even though the company is devoted to presenting a favourable working environment for employees, it does not miss sight of the obligation to shareholders. While rival airlines faltered in their profit levels in the midst of fuel and financial crisis, emirates recorded high profits (The Emirates Group, 2013). As a show of commitment to a culture of environmental sustainability, the Emirates airline is focused on modernising and introducing the most eco-efficient fleets that emits less carbon. Physical Emirates airline is aware that the largest environmental impact of an airline company depends on the type and age of aircraft as well as the way aircraft is flown. Emirates airline is among the airlines that has the youngest fleets with an average of six years. According to the Emirates Group Environment Report of 2012-13, the airline improved by in fuel efficiency because of modern technology, maintenance, and operational practices (The Emirates Group 2013). Considering the case of Emirates A380, the rate of burning is less because the aircraft is constructed using lightweight materials and Engine Alliance GP200. Moreover, efficiency has been improved by utilizing flexible air traffic routes. This approach saves time, fuel, and emissions. In the area of resource management, Emirates airline continue to explore ways of minimising waste and maximising efficiency within the ground operations. Price Pricing strategy pursued by emirates depends on the route. Fares for destinations such as Singapore, Bangkok, Melbourne, and Sydney are kept low because of existence of low cost competitors. Even though fares are kept low, Emirates airline has maintained excellent in-flight services, which has played a critical role in increasing sales amid stiff competition. There is also premium pricing targeted at premium and cosmopolitan customer. Service marketing Emirates airline knows that success relies on continuous improvement of services provided to clients. Modernising infrastructure, enhancing quality of services, diversifying flight attendance, diversifying class luxury, providing inflight food and inflight entertainment are oriented towards shaping services. The Emirates is also pursuing a program of continuous employee development in order to equip workforce with necessary skills, particularly in handling passengers. In the same line, the management of Emirates share the company’s goals with employees so that employees understand their role in the overall success of the company. Availability of supplementary services within the airline is another service marketing strategy utilized by Emirates. Rich company website, online booking tools, tailored payment systems, and computerised billing system have been installed in Emirates to facilitate service provision. Services desk and agents at the airports have been installed to support provision of services. The use of latest technologies in-flight has the objective of making customers feel more comfortable and satisfied (IMM International, 2013). The design of the aircraft, lighting system, entertainment system, quality headphones, seating, and several other items are focused on making the customer feel valued. In addition, Emirates is capitalising on social media to market its services. Facebook, Linkedln, and twitter are social platforms that keep the customer informed of what is happening in the airlines. Advertising Advertising of Emirates product is conducted through sponsoring sports and taking part in social, cultural, and environmental events. This approach brings together the company and passengers. Secondly, the Emirates airline has inflight form of advertising where message is delivered though Open Skies and Portfolio magazines. Open Skies inflight magazine was previously voted as a leading read among the executive travel (Motivate Publishing 2014). The magazine features captivating public figures, technology, health, business, and travel. Content is presented in both Arabic and English to meet the needs of diverse clients. Advertising is also executed via inflight TV and online, avenues that present the best opportunity to reach millions of people in an effective manner. Personal selling Emirates airline tickets are sold both directly and indirectly. Direct sales are done through retail outlets such as dnata Travel Centre, and several retail outlets stationed in international airports across the globe. Ticketing officials are also stationed in airports to help customers purchase their flight tickets. However, the emergence of internet technology have allowed Emirates airline to market and sell tickets online. Using this innovative technology, passengers are able to book a flight, plan and manage a booking, and obtain other information such as baggage and visa information. Indirectly, Emirates capitalizes on services provided by partners i.e. the Flight Centre. Ethical Emirates airline consider ethics as the fundamental element for success (IATA 2012). The airline is devoted to not only the welfare of employees and stakeholders but also that of environment, and communities. While employees are given attractive benefits, the shareholders benefit from high returns to their investment. The airline is likewise continuously investing in eco-efficient fleets that contribute to environmental sustainability. Given that Emirates operates in six continents, the airline is aware of its responsibility to help the disadvantaged across the globe. This is why the company came up with Emirates Airline Foundation to assist needy children. There is also the Emirates Friendship Hospital Ship that delivers medical care to flood victims in Bangladesh. Other countries that have benefited from Emirates Corporate Social Responsibility initiative include Kenya, Ethiopia, and India. Reference List BBC, 2004 ‘Arsenal name new ground,’ BBC news, 5 October, http://news.bbc.co.uk/sport2/hi/football/teams/a/arsenal/3715678.stm. Clark, N 2011, ‘Making Connection’, Vision Magazine, July, viewed 5 April 2014, http://vision.ae/en/business/articles/making_connections. IMM International 2013, ‘Emirates Best Inflight Entertainment 2013’, IMM inflight media, 20 June, viewed 5 April 2014, http://www.imm-international.com/emirates-best-inflight- entertainment-2013/. International Air Transport Association (IATA) 2012, CEO Interview: Emirates Airline Make it Happen Attitude, viewed 5 April 2014, http://www.iata.org/publications/airlines- international/june-2012/Pages/ceo-interview-emirates.aspx. Motivate Publishing 2014, Open Skies, viewed 5 April 2014, http://motivatepublishing.com/magazines/open-skies/. Skytrax 2014, World Airline Awards 2013, viewed 5 April 2014, http://www.worldairlineawards.com/Awards_2013/Airline2013.htm. The Emirates 2014, Emirates Sponsorships, viewed 5 April 2014, http://www.emirates.com/english/about/emirates-sponsorships/sponsorships.aspx. The Emirates Group 2013, The Emirates Group Environment Report 2012-13, viewed 5 April 2014, http://content.emirates.com/downloads/ek/pdfs/environment/environment_report_2012_1 3_locked.pdf. The Emirates Group, 2013 Annual Report 2012-13, viewed 5 April 2014, http://www.theemiratesgroup.com/system/aspx/download.aspx?id=tcm:409-1206240. Read More