Table of Contents
Global Aero Tours is a proposed international airline company. The airline business can have fame allover the world and become a successful airline business in the tourism sector and airline business and become one of the best companies in the world. The concept of the company is to promote efficient and cheaper flights to tourists in most destinations globally.
Global Aero Tours should emphasize on the consideration of humanity and the environment either in the decision of marketing strategy or in the management of the corporation.
The methodology that is used is qualitative approach using secondary document about the airline business. The secondary data is obtained from management and marketing journals, articles books and other written materials regarding airline and tourism industry. The secondary also includes global market trends and the preferences on various airline industries.
Marketing objectives for Global Aero Tours
To realize the importance of efficient and cheap flights in various tourist destinations in the world Global Aero Tours will try to entre different international flight destinations to offer the most efficient and cheap flights globally and to offer competitive advantage and position on other airline rival companies.
Due to a large market target, the strategy Global Aero Tours will rely on growing, transforming, and building the international flight business to ensure its future success.
Target market strategy of Global Aero Tours
The subdivision of the market is essential for a company to make decision. It is required as a basic skill for an airline company to understand the airline market and its structure, so as to make the market decision. (Earl Peter, 1996).
In order to comprehend how the Global Aero Tours will be segmented it is important that the company should be able to set the criteria and know its global target market. Therefore the market segment can be divided into various tourist destinations and categories in accordance with the flight services to be offered by the company. Thus, the market segment should include those customers who will be able to understand and appreciate the services including the types and terms of services to be offered. The market segment focuses on tourists.
According to the correct subdivision of the international flight market the proposed company should delineate its different market strategies emphasizing on different market demands. There should be a strong investigative ability and sound commercial network, with the suitable marketing strategy. Global Aero Tours should aim at to meeting the needs of each target market. The target market of the proposed company should put emphasis on tourists
Competitive strategy of Global Aero Tours.
The theory of Competitive Strategy
There are five kinds of basic competitive strength in an industry. They determine the potentiality for profit of this industry. The potentiality here is measured in the long-term investment, and not every industry has the same potentiality. The final profit potentiality will change fundamentally with the change of the joint competitive strength. (He Zi-Lin, Lim Kwanghui, Won Pho-Kam, 2006)
The result comes out from the interaction of the competitive strength is to form three kinds of basic competitive strategies. Those strategies are: overall cost leadership strategy, differentiation strategy and focus strategy. (Michael porter, 1997)
The basic competitive strategy of Global Aero Tours should be the differentiation strategy, which requires winning the competitive advantage through improving its innovative ability continuously. Strong technological innovation ability can make the proposed Global Aero Tours to stand in the most forward position of the international flight and tourism industry for long, and should focus on characterizing this brand by a special vitality. The biggest challenge for the proposed airline company could be how to meet the market demands taking into account the giant companies in operation. (Oster Sharon M, 1994)
Growth strategy of the Global Aero Tours.
The Global Aero Tours to be designed to become an established multinational airline flight company in the tourism sector. Therefore the management should be able to use different strategy that would sustain the company’s competitive advantage and ensure market entry and success in the local and global flight market. Therefore the growth strategy of Global Aero Tours should aim at focusing on the following;
Integration of Human, Technology and Process
Global Aero Tours should realize that its three main assets lies with its people, its technology, and the processes that they possess. This basically points to the fact that the company is to be involved in an industry where companies have to deal with rapid growth rates. This means that they should have to develop a means to promote business development by maximising the assets which they possess. Development and growth will be ensured provided that the proposed airline company applies advanced processes like Customer Relationship Management (CRM) and other reinforcement implements. (Hayes 2006)
Specifying Job Roles
Besides focussing on the marketing side of the growth, the Global Aero Tours should aim at dealing with its internal environment. Basically this should be done to ensure that the company itself is capable of accomplishing what is required of it by the market. To determine if the personnel would possess the proper skill required or if the sales teams would have the knowledge and the tools to address the concerns of the clients. Basically these are mere parts of a series of questions that need to be addressed in order to level out and integrate the systems of operations and sales of the proposed Global Aero Tours, to minimise the possibility of any conflict within its operations. In doing so, the internal and the external environment of the company will be well-managed, hence ensuring growth and success.
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The mix marketing program, which is one of the major concepts in modern marketing, means a set of controllable, tactical marketing tools that a company blends to produce the goods or services to meet the demands in the target market. It consists of everything that a company has such as the ability to influence the demands for its product. There are four kinds of tools that are well known, they are product, price, place, and promotion. (Peter Doyle, 2006)
There are many choices for a company to make its product strategy. Among them, the product orientation strategy, the brand strategy and the product development strategy are the most three important choices. (Safon Vicente, 2007)
After subdividing, confirming the target market, how to enter and capture that market may become an essential problem for the proposed Global Aero Tours. This is a problem about its services orientation. Hence, the market studies on Global Aero Tours should aim at showing that the consumers can make decisions completely in accordance with their own preferences, the services brand, the ability of the economy, consumer confidence and other personal characteristics, when supplied with the flight services with the same quality and effort. In this so-called buyers’ market, the marketing strategy should be corresponding to the characteristics of the different passengers’ community to win the competition. Studies should analyze the different personalities, divide consumer groups and decide what kind of flight services should be supplied to a particular consumer community. Therefore the Global Aero Tours can win a great number of fans and supporters internationally.
A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. Consumers view a brand as an important part of a product, and branding can add value to a product. And product design is certainly affect the success of the brand. Therefore Global Aero Tours should be in the fore front in keeping good at molding the good brand image by injecting individuality into quality flight services. It should consider on how the customers will choose the brand, and how it can make that experience reflect the brand character.
The price of a product or services reflects that the business enterprise should satisfy the various kinds of demand and get profit to ensure its general index object. The pricing objectives are the guidance for a business enterprise to make price decision, which means the purpose or the standard that the company consciously wants to attain while setting a price for its product.
When the market is not saturated, the competition is not intensifying, and the transparency of the product technology is not very high, the enterprise could access to excess profits most easily. Once the new entrants and the transparency of flight services increase, it only can get a basic profit. So it is necessary for a new product or service to have a high price, which could make the enterprise earn excess profits. When others begin to supply the similar services, it is essential to provide substitutes with improvements and reduce the price of the original ones. As long as the enterprises innovates, challenges itself, surpass it, it will be able to keep leadership when having rivalry with other airline companies.
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However, the airline ticket price should be made on the basis of sufficient market researches on consumers. No matter what an advanced technology or brand that a product has, it is successful only the consumers love and go for it.
The promotional strategy of the Global Aero Tours should be to increase the sales in the integrated promotional strategy. It is a series of activities inform of the consumer existence and characteristics of the enterprises, brands and flight services, which could arouse the market demands, create and maintain the image of a company.
The promotional activities of the Global Aero Tours should be based on based on the topic like cost, convenience and function. It should focus in maintaining more attention to attract customers and create consumer group through the usage of attractive and cheap flight tickets, hence cheap flight costs and convenience should be the distinguishing brand concept of the proposed Global Aero Tours, which should be rooted in customers mind through some traditional promotion methods like TV advertisements and magazine advertisements and billboards. The company would be required to adopt some new ways to publicize its flight services.
Marketing Channel Strategy for Global Aero Tours
The marketing channel strategy is a set of inter-reliant channels through which the services could be spread from the flight company to the customers. The meaning of services here is not restricted to the air travel. The marketing channel strategy is an important component of the entire marketing system, which plays a significant part in reducing the cost and enhancing the competitive power of the proposed airline company. Along with the market development, the patterns of the marketing channel strategy are diversified. The vertical marketing system, horizontal marketing system and hybrid marketing system are three common forms. (Arch W, 1975)
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Global Aero Tours should be aiming at choosing its local business agent in various tourist destinations and sites. The airline company will decide whom to choose according to their capital, credibility, channel, cooperation and management. Once the decision is made, the agent must comply with the contract, and sale the flight tickets, the office should supply perfect base station for the sell of tickets. Meanwhile, pay attention to the international flight marketing and try to take the intensive marketing strategy in all domains.
The time line of the proposed budget is six months i.e. from 19th July 2010 to January 1st 2011
Operating revenue 1 million Euros
Operating Expenses - Aircraft fuel and related taxes
- Landing fees and other rents
- Sales and marketing
- Maintenance materials and repairs
Recent analysis on the Airline companies has been able to use strategies an approach to meet the demands of their target market. The company will be required to consider strategies to become competitive in the global market because of the existence of competitors. The following recommendations should be considered. In terms of target market or position strategy, Global Aero Tours should be in a better place to enhance their strategy by targeting a specific group society, the tourists, or by downsizing their number to those who have the regular international flight travel trends and their services to be considered as the niche market of the company in selling their ides and services. In defining the niche market this will entail an intensive market research and sales strategy for the business endeavor to succeed (Kotler and Armstrong, 2001).
It can be concluded that the proposed new airline company “Global Aero Tours”. venturing into the global airline market, can stay into the global competitive market by using and adopting different strategies and approaches. The fact that the market is concentrated with giant Airline companies, with adoption of a company’s culture that consists of the personal attributes that the employees can add to the organization by the organization’s founder, executives, and other managerial staff, the role that they can contribute in decision making and planned direction can boost the needs and demands of the proposed company in terms of services and company achievements.
Global Aero Tours, a proposed tourism Airline, wants to establish a large regular customer base and is to take advantage of a specific gap in the transportation of local and international tourists in the international travel market. It is to concentrate its flights on local and international destinations within European nations and across borders. To fulfill the gap that exists in low cost service, fast and efficient and therefore is expected that it will establish a strong, consistent revenue base to ensure stability for the business. The taxonomy of Global Aero Tours is based on its projected functions. The airline is to be designed solely for tourists particularly in European countries to get cheap and comfortable flights both locally and on international destinations. This would also boost the tourism industry.
Like any other air line company trying to entre the airline market. It is noted that the strategic development of the proposed Global Aero Tours is to take the demand-side strategy. In doing so the multinational airline company may subdivide the airline market into several objective markets.
According to studies about the interests of different individuals for example the booming tourism sector and then different types of airline services in the market aimed at attracting different travel groups, the competitive strategy of Global Aero Tours should aim at improving the innovative ability to win tourists in a very competitive airline business.
Adoption of strong technological innovation ability can make the proposed Global Aero Tours to stand in the most forward position of the international airline industry, and characterize its brand by a special vitality and the marketing capability to use the integrated human economic and social parameters to market its strategize including cheap ticket price, promotion and the appropriate market place. It should value the construction of a brand, the orientation flight services and to pay attention to technology improvement. This can make it have advances in increasing competitiveness in sales through sensitive advertisement