Investment in The Coconut Industry by Nancy Cheruiyot
Go lenilynne v53 10 step marketing
1. 10 STEP Marketing Plan for Cebu Pacific Domestic Airfares Lenilynne Go Feb 2011 1 lenilynnego.blogspot.com
2. This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes. Disclaimer lenilynnego.blogspot.com
3. Cebu Pacific domestic airfares primary target market are the Budget Conscious Travelers Who need to travel low cost so they can spend more on other things They can choose AirPhil Express; Sea Air; Zest Air or Philippine Airlines for these domestic travels. The opportunity gap lies in the need to veer away from traditional airlines model to a Low Cost Carrier one. The market size is around Php 24.8Billion Steps 1 to 5Summary headline of your PTM and market lenilynnego.blogspot.com
4. Steps 6 to 10Summary headline of the marketing mix & strategy Cebu Pacific Domestic Airfares are offered all year round and serves to 33 domestic destinations in Philippines. These are positioned to be priced lower than traditional airlines, but can be higher as well. Promotions always have catchy numbers as base fares And these are announced over their website/online ticketing. Cebu Pacific is the pioneer in the industry for being Low Cost but Operationally Efficient as their generic winning strategy. lenilynnego.blogspot.com
5. 1. Cebu Pacific Domestic Airfares’ Primary Target Market are the Budget Conscious Travelers Ages 21-35; Male and Female; Classes lower B and broad C; can be Single or Married They are young professionals who are seeking to vacation abroad or outside of their cities and are on a tight budget. They are internet savvy as well, and loves to move around and be on the go all the time. They usually travel during holidays and long breaks, mostly for leisure. They are not particular about comfort travel for the meantime. They also have credit cards and are not afraid to use credit online. lenilynnego.blogspot.com
6. PTM needs to belong to a group experience but within a budget Ability to travel is a status symbol Need to belong to a group Activity such as travel Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 6 lenilynnego.blogspot.com
7. 2. PTM’s needs, wants & demands Budget Conscious Travelers need to socialize and bond with family or friendsin a different atmosphere. Travel boosts their self esteemas it creates a sense of pride and a status symbol since travel before is seen to be a luxury. They want low price fares without compromising safety; with a no hassle experience. They in turn demand value for their money even if comfort is not there, as long as it has the basics and fits within their budget. lenilynnego.blogspot.com
8. 3a. Direct and indirect products that address my PTM’s NWD Direct Competitors: Air Philippines Zest Air Philippine Airlines Sea Air lenilynnego.blogspot.com
9. 3a. Direct and indirect products that address my PTM’s NWD Indirect Competitors: Sulpicio Lines Negros Navigation WG&A Lines MBRTS Lines Bus Lines for intra Visayas, intra Luzon and intra Mindanao travel Variables for choice: Price, Reason for Travel; Frequency and Time Period of Travel; Comfort; Destinations Available lenilynnego.blogspot.com
11. 3b. Cebu Pacific’s Competitive Positioning against other Domestic Airlines lenilynnego.blogspot.com
12. 4. Cebu Pacific Domestic Airfares is strongly positioned as a Low Cost Carrier Cebu Pacific saw the need for cost effective and time efficient domestic travel and is the pioneer in the Low Cost Great Value position. Other Airlines such as AirPhil Express (LCC of PAL); Zest Air (formerly Asian Spirit) and SEA Air have followed suit since then. Traditional positioning have been on SAFETY; RELIABILITY and perks such as mileage points. lenilynnego.blogspot.com
13. Was adopted starting only in Y2005; and has grown since then Company grew and added more domestic routes as well as international routes MAIN POSITIONING : IT’S TIME EVERYONE FLIES! 4. Cebu Pacific’s Position as a Low Cost Carrier lenilynnego.blogspot.com
14. 5a. Market Share of Customers shows 16.06Mil Passengers TOTAL INDUSTRY REVENUE: 16.06MilPassengers x P1549* per flight fare = Php24.8Billion *based on average price comparisons lenilynnego.blogspot.com
15. 5b. Cebu Pacific’s Market Share Against Competitors is 49% CEBU PACIFIC DOMESTIC TRAVEL RECEIPTS AT Php14.2Bil lenilynnego.blogspot.com
16. 5c. Customer Data indicates a total travel of 3 x a year Travel for the following purposes: Leisure = 2x per year Business = 1x per year Total of 3x per year Yearly travel expenditures = 3 x Php514* = Php1542 for transportation TOTAL INDUSTRY at 1.06Mil per year x P1542 fare expense = Php24.76Billion * Based on DTI data http://www.tourism.gov.ph/Downloadable%20Files/revHSDV2009PressRelease.pdf lenilynnego.blogspot.com
17. 5. Domestic Air Travel Market Size is Php 24.8 Billion pesos per year Competitor data= Php 24.8Billion Company data = Php 26Billion Customer Usage data = Php 24.76Billion lenilynnego.blogspot.com
26. 6b. Product Description Cebu Pacific Domestic Airfares has 2 kinds: 1.) “Go” Fare – regular fares all year round; with 15kg checked in baggage and 7kg carry on 2.) “ Go Lite” Fare – less Php100 for No checked in Baggage but with 7kg carry on lenilynnego.blogspot.com
27. Cebu Pacific’s On-time Performance Definition of On-time Performance In accordance with industry standards, an 'on-time' departure is one that departs from the designated bay no more than 15 minutes from the scheduled departure time. Source: http://www.cebupacificair.com/aboutus/ lenilynnego.blogspot.com
28. 6b. Comparisons with other Domestic LCC (Low Cost Carriers) Points of Difference Operates the youngest fleet in the country; average age 3.36 yrs Can choose “Go Lite” or no baggage allowance at a discount of P100 Food onboard for sale No mileage accrual Can be paid via Bank if no credit card Points of Parity Offering Low Fares Most domestic routes offered are same Can be booked online or through travel agent Performance is relatively on-time Online Credit card payment is accepted lenilynnego.blogspot.com
29. 7. Price From Zero to 1Peso for Base Fare to other catchy numbers such as “888”, “88”, “666” etc. Add ons such as insurance, seat allocation, and baggage are on passenger’s choice CATCH bookings are made for travel from 6months to 1year from date of booking/payment Regular Low Fares all year called “GoFares” lenilynnego.blogspot.com
30. 7. Price Comparison Surprisingly, without promo Cebu Pacific is most expensive!!! lenilynnego.blogspot.com
31. Low cost only during Promos Roll out promos almost every month but with limited seats and limited time Forward booking sales for Promos Counter these low fares by being highest on the regular fares 7. Cebu Pacific Pricing Strategy lenilynnego.blogspot.com
32. 8a. Which of these modes does Cebu Pacific use? 1 2 5 4 3 lenilynnego.blogospot.com
33. 8. Promotions Mix Internet / Online Sales Social Media such as Facebook, Twitter, Youtube Email advisories about Promos etc Word of Mouth from passengers (no need for Celebrity Endorsers unlike Seair who used Mark Nelson) Experiential – Flies the 50th Million traveler for free for 1 year Press Releases lenilynnego.blogospot.com
37. 8a. Too much traffic System Bogged Down! GOOD SIGN THAT THEY DO GENERATE HIGH INTEREST FROM THEIR INTERNET SAVVY TARGET MARKET! lenilynnego.blogspot.com
38. 8a. Social Media Statistics 90,000 likes on Facebook 84,000 followers on Twitter 9Million views ++ for Videos of FAS dancing lenilynnego.blogspot.com
39. 8a. Social Media: You Tube Video of FAS dancing Sep2010; 9.8Million views (96% liked it or 18,007likes and 693 dislikes) http://www.youtube.com/watch?v=Lqh8e2KYIrU&feature=related Female Version http://www.youtube.com/watch?v=40O0lROkLWI Male Version lenilynnego.blogspot.com
40. 8a. Press Releases Online about Awards From www.cebupacificair.com lenilynnego.blogspot.com
45. 9. Place Mainly sold on the Internet They also have Direct Sales through booking offices They also have Call Center sales Government or corporate client accounts 3rd party sales outlets lenilynnego.blogspot.com
46. 10. What is the generic winning strategy? Which of the 4 strategies are being used? (bold and underline to most dominant strategy) Low Cost Producer by being Operationally Efficient Supply and Distribution Leverage Differentiation Niche lenilynnego.blogspot.com
47. Low Cost by being Efficient in Operations Using young and new fleet less maintenance since it’s still new Faster turn around at Terminal 3 (so they can use the plane for many other routes) Don’t issue tickets (just email) and use only thermal paper for boarding pass More routes, more destinations, more frequent flights for higher seat load factor Generic Winning Strategy lenilynnego.blogspot.com
49. Cebu Pacific domestic airfares primary target market are the Budget Conscious Travelers Who need to travel low cost so they can spend more on other things They can choose AirPhil Express; Sea Air; Zest Air or Philippine Airlines for these domestic travels. The opportunity gap lies in the need to veer away from traditional airlines model to a Low Cost Carrier one. The market size is around Php 24.8Billion Steps 1 to 5Summary headline of your PTM and market lenilynngo.blogspot.com
50. Steps 6 to 10Summary headline of the marketing mix & strategy Cebu Pacific Domestic Airfares are offered all year round and serves to 33 domestic destinations in Philippines. These are positioned to be priced lower than traditional airlines, but can be higher as well. Promotions always have catchy numbers as base fares And these are announced over their website/online ticketing. Cebu Pacific is the pioneer in adopting the Low Cost Carrier model and adopts this by being Operationally Efficient as their generic winning strategy. lenilynngo.blogspot.com
51. 10 STEP Marketing Plan for Cebu Pacific Domestic Airfares Lenilynne Go Feb 2011 51 lenilynngo.blogspot.com
