The paper "Travel And Tourism Marketing" is a great example of a Marketing Case Study. Flydubai is a low-cost airline established in 2009 in Dubai as part of the Emirates Group. The airline operates out of the Dubai International Airport (Flydubai, 2015). Fly Dubai's first flight was in Lebanon in June 2009 and has been able to grow its flight at a great pace. The airline is fully owned by the government and hence has access to full facilities at the airports. The Middle East has a large market for low-cost airlines (Saxena & Gupta, 2012).
There has been a trend toward low-cost airlines and high-quality services. Dubai has an attractive tourism industry which gives the industry high hopes for growth. There has also been an increase in domestic flights. Despite the 2008 recession, the airline industry has been able to gain and perform well. The gulf low-cost airline market is still at the growth stage hence offers great room for expansion (Gubisch et al. , 2011). Through market segmentation, targeting and positioning, Flydubai has been able to grow and expand its market.
This essay will show how Flydubai segments its customer base, the target market used and show the positioning strategy used through a positioning map. This will be complemented using academic theory, models and frameworks. Market segmentation Market segmentation involves dividing the market into segments with unique needs and characteristics. The division requires specific marketing strategies to cater to them. Businesses cannot be able to appeal to all buyers in a market. This is due to the fact that there are many buyers who have varied needs (Wedel & Kamakura, 2012). Being a low-cost airline, Flydubai focuses on consumers who are price-conscious.
Because of the economic conditions and downturns, most of the consumers are looking for ways to save money. This makes them choose low-cost carriers. The airline has a large customer base. Market segmentation involves evaluating market targets and selecting the one which is more valuable (Yankelovich & Meer, 2006). Demographic (with specific targets) Flydubai has used demographic segmentation. This involves segmenting the market into groups based on income, family size, gender occupation and nationality among others. In this case, the value used is the income of the consumers.
This is one of the most common forms of consumer segmentation used. Demographic valuables are easier to measure compared to other types of valuables (Yankelovich & Meer, 2006). Under demographic segmentation, the airline targets those above 20 years living in UAE and around the world where the airline has destinations. The airline targets those with average and higher income who prefers low-cost services. Most of the customers who fall under the demographic segment are students, families and white-collar workers. Psychographic This involves looking at the customers' psychographic variables.
This includes their personality and lifestyles. This form of a segment is used to complement demographic segmentation. This is through providing additional information that helps to understand the behaviour of other potential target markets (McDonald & Dunbar, 2004). The group targeted under psychographic segmentation have free time and enjoys travelling. This is a group that enjoys experiencing new things. The personality of this segment is independent, adventurous, young and dynamic. This includes both domestic and international tourists.
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