Competitor analysis of Edited showed its significantly steady positions against toughest rivals such as Emirates and Qatar Airways. In addition, the PESTLE analysis determined the factors involving in decision making process of Edited and also to determine stability of macro environment of the company. In addition, SOOT analysis of the company showed internal and external strengths and weaknesses of the company. It has shown higher degree of the strengths over weaknesses and threats which represented higher degree of healthiness of the company.
In addition, the study of porters five forces for Edited showed tough rivalry form other airliners. Last, marketing mix of Edited showed it’s waste range of marketing abilities. All of these analysis evinced the strong and healthy position of Edited in market. This also indicated that possible merging of Edited with Emirates or Qatar airways may open up new horizon for AJAX aviation. 1. Introduction Edited Airways is one Of the two flag carriers and the second largest airline Of the I-JAG after Emirates. It has a head office located in Kalmia City A, in ABA Dhabi.
The name Edited is derived from the Arabic word, which means “Union” (Float, 2007). The airline operates more than a thousand flights per week to 96 destinations in Middle East, Africa, Europe, Asia, Australia and the Americas. To attain this, Edited has a fleet of 105 aircrafts: including Airbuses ND Boeing’s in begging (Taylor, 2011). In 2008, Edited placed the biggest order up to 205 aircrafts in aviation history at the Burroughs air. This Essay has given focus on the Edited, An Arabian Dreamlike.
The marketing strategies of the company has defined the Company’s market orientation, customer needs, marketing of company products and services. Further it has focused on company’s segmentation, targeting customer range and positioning to appeal chosen segment. In addition, marketing audit section focused on Testis’s market analysis and profitability, competitor analysis and customer values and analysis. Further ahead, Company’s PESTLE analysis has been conducted which showed the factors affecting company’s macro- environment.
These factors included political, economic, social, technological, environmental and legal factors. Later part of the essay shows SOOT Analysis of Edited which involves the analysis of both internal environment (strength and weakness) and external environment (opportunity and threat) which is the tool to explore the future opportunities, avoiding threats and concluding its different competencies and strength for the formulation of Strategies. Last section of essay has focused on marketing mix of the company which has issued the products, price, promotion and places of Edited.
This has given detailed idea of marketing strategies of Edited which show the healthy position in the market. 2. Market Orientation Edited announces major campaigns each year with serious investment in the marketing sector. Company’s marketing division has three divisions as follows: Sponsorship and Exhibitions, Brand Management, and Visual Communication (Jobber and Ellis-Chadwick, 2012). Once in a while in Canada, CEO of the company named as James Hogan stated, “We have a mandate from our shareholder. That mandate is to be the best airline in the world, not he biggest”.
Thus, the company has a focus on Customer satisfaction and their needs. Thus, company’s change and adoption are endemic for their survival, response to drive company’s market. The market-driven companies, such as Edited, are keen to adapt their products and service according current and latent market needs (Armstrong et al. , 2000). Edited has marketing scheme for consumer engagement in following sequential steps, which are as follow (Stephens Blandishing, 2011): 1 . Customer needs 1 . Air travel “fly the best. ” 2. Tailored personal flight experiences 2.
Potential Market opportunities 1. Cargo freight Holidays 3. Affiliation and bilateral agreements 3. Customers . Business travelers 2. Tourists Freight 3. 4. Marketing products and services . Integrated marketing approach 2. Quality brand image 3. Sponsorship reflects brand image These factors are explained in detail here. Company’s initial focus is the passengers who want to travel to and via ABA Dhabi, it reflects their slogan, which is “from ABA Dhabi to the world”. This slogan has turned to many campaigns such as ‘fly with the best”.
TO achieve the client needs, Edited launched a tailored personal in-flight entertainment showcase using a new TV advertisement using a campaign called “He likes, he likes. ” Further in 2011 the company has launched campaign to attract tourist and business persons to promote AAU as tourist and business hub of the world (Survivorship and Lube, 2008). The qualitative aspects of these campaigns are needed to be assessed for the effectiveness and to determine the exposure value of the company sponsorship. Edited has customers based on their travel purpose such as tourist, personal, religious and business.
Edited proposes aim to increases annual arrival of passengers from 1. 34 million (in 2006) to 3 million per annum in 2001 5. Subsequently, it has proposed an increase in ABA Dhabi International Airports capacity to handle up to 50 million passengers per annum. Edited has expanded its globalization, holidays and cargo businesses using these facilities to cope up with growing customer needs (Survivorship and Lubber 2008). As being a global alliances member, Edited has preferring affiliations and bilateral relationships with other airlines such as Are Lingua, Air Berlin, Air Serbia, Altair, Jet Airways, and Virgin Australia.
These are either icosahedra relationships or special prorate agreements in aid to proliferate the company’s network and its offer to the customers (Mascaras and Shah). The marketing concept Of Edited is specially designed to achieve corporate goals through meeting and improving customer needs in the highly competitive environment. Testis’s assimilated promotion methods to set it distant from other air carriers. This approach is quite similar to the DEL courier approach in USA which has highest competitive against Federal Express (Faded) and UPS in where it was about customer’s decision-making abilities.
Edited has a vast range of advertising material that has been spread via trade, customer, media, and other PIP events, including the airlines own channels (Cole, 2011). This high-quality collateral material is a reflection of personalized and luxurious services of Edited. As being an official flag carrier of ABA Dhabi, AAU, the brand “Edited” reflected same values of ABA Dhabi, AJAX. This advertising showed great attention and effectiveness of its business areas where they provide the ultimate luxury of flying.
This Brand “Edited” has enhanced key sporting and cultural sponsorship events both in ABA Dhabi and around the world. These sponsorship deals are at ABA Dhabi Fl Grand PRI, Manchester City football club, Sports Australia Hall of Fame, Rugby, Golf, Hurling and numerous other art and cultural events around the world (Diagnosis, 2009). Study of micro-environment and customer range of Edited shows the customer segmentation, why, when and how they choose Edited. This study has evinced numerous customer focused proceedings to improve customer experience and customer satisfaction (Diagnosis, 2009).
These proceedings are: Introduction of self-service kiosks and extended chauffeur service Improved menu – “fine dining experience. ” Increased destinations and countries with more efficient aircraft Improved loyalty program and flight classes New airport lounges and Priority boarding Designer uniforms for air and ground staff All of these improvements confirms the company s vision for the future growth. Moreover, to attain the needs of the customer, the company is taking constant innovating efforts and taking the smallest detail into account in pursuit of excellence and perfection. . STEP- Segmentation, Targeting, and Positioning Testis’s marketing strategy is based on customer’s needs, behavior and characteristic of marking environment. Segmentation of marketing and targeting processes are based on customer’s behavior in marketing and consisting to create a high-quality image in consumer mindset (as described in figure 1) (McKenzie et al. , 2008). The segmentation Of the company, Edited Airways, is categorized upon the customer geography, Choreographs and patterns of behavior such as lifestyle habits and social class of customers.
Thus, Edited has set goal to achieve a safe and consistent commercial image with equal and effective brand elements (Franken, 2007). Figure 1: Use of segmentation, targeting and positioning in marketing This has a primary target group of Edited are the business travelers and the leisure travelers to Middle East and other parts of the world. This intensification of product and service offering is attained via the different seating provisions such as diamond, pearl, and coral classes, other value added services including religious and medical services (Survivorship and Lube, 2008).
Above mentioned customer target is usually achieved with own flights and code share agreements of Edited Airways. Edited itself is a full- service carrier with the other premium carriers such as Emirates and Qatar Airways. This added a performance positioning in Testis’s profile, which provided a well-positioned hub and focused on high standard service with original positioning in the aviation market (Vestryman et 2008). 4. Edited – A Marketing Audit Marketing audit can be defined as the study of various internal and external factors using marketing analysis tools such as SOOT, PESTLE, and Porters Five Forces.
Here, marketing audit of Edited has distinguished the various factors influencing Testis’s marketing strategies. 4. 1 Market Profitability The Middle East airlines have given $400 million profit per year via increased passenger and cargo traffic. This region has become a hub for Europe and Asia according to DATA, an International Air Transport Association (Franken, 2007). This has played a role in the global travel industry. Edited has declared promising active EBITDA scheme in (earnings before interest, tax, depreciation, amortization, and rentals) in 2011 IQ , with revenue growth Of 28 percent in the same year (Cole, 2011 4. Competitor Analysis Testis’s foremost competitors are from the same region, instead of the European and American or Asian airlines. One example is Qatar Airways (operating in Dada as a hub) followed by the biggest rival “Emirates”, belonging to AJAX and Dublin as a hub. Emirates is a dominant carrier, although Qatar Airways and Edited combined, are roughly 70% of its size. Emirates turnover is considered as the quintessence of Tuba’s rapid rise to international prominence. Data suggested that Emirates’ marketing expenditure is of 4% of its annual turnover, $380 million. Both of these careers are extra-regional based services.
However, Emirates is offering 82% of its capacity on extra-regional services (Franken, 2007). Most of those other carriers such as Edited (74%), Qatar Airways (66%) and Gulf Air (54%) provides more than half of their seats for these extra-regional flights. In contrast to this, Air France, and Lufthansa are contributing about 23% and 26% of their eats for the extra-regional services (Vestryman et al. , 2008). This shows their strong domestic market, whereas Emirates, Edited and Qatar Airway shares a larger number of seats for the extra-regional services indicating their strength in their international market.
These seats offered by Middle East carriers are concentrated in four countries: Ignited Kingdom, Germany, France, and Australia (Cole, 2011). Qatar Airways, one of Testis’s competitor, remains investing in both: fleet and hub’s infrastructure management. For example, Qatar Airways set up an extra terminal for first and business class assigners only to reduce the boarding queue. This new terminal has given big boom for the Qatar Airways. This is the first of its kind, not only in the Middle East, but nowhere in the world as Kafka AY Baker, Qatar Airways’ CEO stated (Vestryman et al. , 2008).
The most important advantage of Edited competitors is the location of their hubs which has the high attraction of tourism and significant purchase power like Dublin. According reports from the Centre for Asia Pacific Aviation, Testis’s market share in Middle East region is about 4. 5 percentage with stiff rivalry from Emirates at 19. 3 percentage and Qatar Airways with 6. Percentage of market shares. Testis’s competitors such as Emirates and Qatar Airways has weaknesses in their policies that they focus on high-profit value from the customer instead of budget travelers and middle-class travelers (Cole, 2011 4. Customer Value Perceptual market segmentation is view, faith or value that displays how both individuals and groups understand the marketplace and it residual value. Successful marketing is to understand this and focus in on the highest value customer base available. The customer perceives that they are receiving value when benefits outweigh the sacrifice (Vestryman et al. 2008). Thus: Customer value benefit – sacrifice Perceived benefit could be produced from the products such as first class travel, associated services such as the luxury of its airport lounges and company image.
The successful marketing process can target customers from the largest pool value, and communicate it perceived benefits in order to maximize the expenditure (Woodruff, 1997). 4. 4 Customer Analysis Customer analysis is the sector of company’s micromanagement that has a focus on consumer behavior. , consumer market must be identified and then their needs to be sent out. The marketing plan must address customer acquirement such as understanding of market segment, sorting benefits, selection of criteria and their relationship to competition, distribution channels, promotions and price will be needed to complete the analysis (Parsons, 2003). . PESTLE Analysis of Edited. There are several aspects affecting the company’s macro environment in the process of decision-making. To study these factors, marketers categorize them using PESTLE model or analysis. This analysis separates factors between political, economic, social, technological, environmental and legal (Natural and AY-Alai, 201 1). These factor for Edited are discussed as below: 1. Political factors (Natural and AY-Alai, 2011) Relatively liberal government Support from Sheikh Stability in united Arab Emirates Total instability in Middle East Role of ABA Dhabi as capital 2.
Economic factors Cheaper costs at domestic airport High external and little internal fuel prices Highly developing city Dirham is strongly related with Suds Free-trade agreements with Majority of the Asian countries 3. Social factors (Natural and AY-Alai, 2011) Cosmopolitan workforce and population Plenty of wealthy people in region and city Still existing discrimination of women Muslim traditions 4. Technological factors The existing order for aircrafts under proceed Development of devices Online service management 5.
Environmental factors Tough hot environment in region Lack of fresh water Tendency to energy efficiency Sound and other restriction in urban areas 6. Legal factors Light labor force restrictions Low tax regime High cost of AJAX visa The political stability of AAU has given a greatest advantage to Edited. As stated earlier, Edited is based in ABA Dhabi, which is a rapidly developing city in AJAX. Dublin has its pros of starting development, but today, ABA-Dhabi economy is growing higher than Dublin. Edited has more influences on
Emirates as its headquarters are situated in the capital of the country. There is a competitive advantage for both airlines: Emirates and Edited airlines as they benefit from a low tax regime and lower costs in domestic airports. However, the currency value of AJAX, Dirham, is strongly associated with USED. It results in lower exchange value base cost over European rivals. Besides this, other PESTLE features are mentioned above as bullet points. 6. SOOT analysis of Edited SOOT analysis is the simplest method to conduct a marketing audit.
Strengths and weaknesses of the company are internal and controllable sources whereas capabilities where threats and opportunities are external and uncontrollable resources (Tapes, 2012). This analysis helps to align marketing strategies to run the business successfully. These factors are noted as follows: 1 . Strengths High brand images Backing of ABA Dhabi Government New fleet of Efficient airplanes Flat management structure due to fast growth Little corporation taxes Enable of the ABA Dhabi 2030 Plan Training/Learning Academy High Profile sponsorship deals High cost for new entrants Fuel hedging strategy 2.
Weaknesses (Tapes, 201 2) Loss-making business, Economy travel is poorly rated Heavily reliant on international onwards moving traffic, High cost of business starts up Capital interest charges 3. Opportunities Sharp Brand images allow entrance into new markets Growing ground services Development of environmentally friendly fuels growing market for luxury air travel Increased consumer spending power in Asia and Middle East ABA Dhabi development partner Partnership with other airlines 4.
Threats Competition from top airlines in Middle East, Terrorist threat and actions Natural environment – ash clouds Stop European flights Environmental lobbyists Shortage obtained and qualified staff Testis’s strengths are a market advantage, high market brand and many more. The equivalent but opposite strategies are seen in the case of threats. Thus, there is a scarcity of educated and skilled personals to set up Testis’s learning academy. These benefits of marching and uniting approaches using the SOOT analysis can reduce the threats to the business and help to turn weaknesses into organizational strengths (Tapes, 2012). . Porters Five Forces Analysis of Edited The Porter’s five forces analysis is famous to determine competitiveness within the industry as shown in figure two (Porter, 2008). This model has been seed to review internal and external competitiveness of Edited. Here, five of these factors are examined which are as follows: The Threat of New Entrants: Edited was facing and still facing significant threats from the new entrants in the market. The major threats from new entrants are ARK Airways and Air Arabia.