This analysis is done according to the Marketing concepts.First, It includes analysis of airline industry of Pakistan through BCG Matrix, PEST analysis, Porter Generic Strategies, SWOT Analysis. Secondly, it contains a marketing plan as well elaborating only its analysis.
3. INTRODUCTION
Airline Industry of Pakistan consists of three main players playing their part in
economy.
Pakistan International Airline (PIA)
Serene Air
Air Blue
Other private Airlines (Princely Jets, Vision Air International etc.)
4. INDUSTRY ANALYSIS
The Airline Industrial Analysis is conducted by going through the four main concepts
of Marketing that are: -
SWOT Analysis of Airline Industry.
BCG Matrix.
PEST Analysis.
Porter’s Generic Strategies.
5. SWOT ANALYSIS
According to this Analysis, the Strengths, Weaknesses, Opportunities and Threats of
Pakistan’s Airline Industry are examined.
Strengths: -
1. Increase in number of international Passengers.
2. Fastest growing domestic routes.
3. Increased Market Share.
4. Reasonable fleet size.
5. Honour of having second Asian Airline in global industry.
6. CONTINUED…
Weaknesses: -
1. Revenue Depending on Fuel Prices.
2. Implied Government Rules and Regulations.
3. Less International Flight Operations.
4. Limited Routes.
5. Difficulties in promoting travel and tourism.
6. Burden of debt on some airlines.
7. Lack of incentives given by government.
7. CONTINUED…
Opportunities: -
1. Can earn grater revenue through domestic operations.
2. All Airlines can adopt technical innovations according to their budget.
3. Have a chance to upgrade all airports.
4. Increase in the number of international routes.
5. Price controlling of tickets.
6. Can improve their fleet size.
8. CONTINUED…
Threats: -
1. Lack of allocation of resources by government.
2. High burden of debt.
3. Continuous rise in fall prices.
4. Increasing Accidents/Crashes.
5. High Competition.
9. BCG MATRIX
The BCG Matrix compare the Airlines of Pakistan according to their relative market
share and market growth.
Stars: PIA being National airline of Pakistan have highest market share and market
growth, hence included in stars
Cash-cows: They have highest market share but low relative market growth rate.
Serene Air and some private Airlines (Princely jets) are included in it.
10. CONTINUED…
Question Marks: They have low market share but high market growth rate. Air
Blue is included in this, they gained a high growth rate in a very less time
Dogs: Some of the private Airlines of Pakistan such as Vision Air International
having very low market share and market growth are included in dogs.
11. BCG MATRIX FOR AIRLINE
INDUSTRY
STAR
Pakistan
International Airline
(PIA)
QUESTION MARKS
Air Blue
CASH COWS
Serene Air
Princely Jets
DOGS
Vision Air
International
MARKET
GROWTH
RATE
RELATIVE MARKET
SHARE
HIGH LOW
LOWHIGH
12. PEST ANALYSIS
The PEST Analysis basically includes the macro-environment factors involved in
affecting the Airline Industry.
These factor are: Political, Economic, Social and Technological factors.
The Airline Industry is very much influenced by these factors due to a continuous
change in environment and has gone through a very rapid change.
13. POLITICAL FACTORS
The political factors have a very important influence on any industry, Same is the
case with Airline Industry of Pakistan.
Government rules and regulations on Airline industry affects their revenues and
services.
It has been observed that some governments of Pakistan have played an active role
in improving the Airline Industry after analysing that this industry is a major actor in
boosting the economy.
14. ECONOMIC FACTORS
The economic factors expresses the relationship between customer purchasing power
(i.e. their income) and the prices of Airlines.
In Pakistan, the inflation rate is very unstable so the spending power of consumer
becomes volatile that is depending on situation.
In good economic conditions the Airline Industry has improved as well in terms of
lowering the ticket prices and using advanced technology.
15. SOCIAL/CULTURAL FACTORS
These factors depend on the people becoming more educated and professional so
they become aware of using Airline services.
They spend a considerable time and money on selecting the airline services
according to their role and status.
The Hajj Regime in Pakistan is also one of the main social/cultural factors that
attract a huge number of customers and Airlines earn huge revenue in this period.
16. TECHNOLOGICAL FACTORS
In Past few years, Technological factors have exerted a very strong influence on
Airline Industry of Pakistan.
Major technological changes took place in this industry including innovations in
Reservation and Booking Systems.
The Airlines also updated their websites and introduce options of e-ticketing (Online
Buying of Tickets using ATM card numbers), schedule of flights etc.
18. COST LEADERSHIP
In this strategy, companies works to achieve a lower production and distribution cost
to their target markets.
PIA and AirBlue having highest market share try to manages the average prices for
their customer.
Airlines that have applied this strategy have gained an efficient and low cost when it
comes to Labour and services.
19. DIFFERENTIATION
This strategy focuses on companies concentration on providing uniqueness in their
services.
There are number of airlines (PIA & Serene Air) that have applied differentiation
strategy by bringing innovations in their services.
One of the main example is use of technology. Moreover, they also improved their
services including: Staff, Accommodation, food, timings, fleet size etc.
20. FOCUS
Here the Airlines focuses on one or more market segment and then decides either they
should be cost focussed or Differentiation.
PIA: their main focus is on both cost and differentiation. They try to set an average price
for their customers and also bring innovations in their services.
Serene Air: they focus on cost leadership more because the domestic travellers need a
reasonable price to travel within the country.
22. CONTINUED…
This Marketing Plan provides an analysis of the airline, Serene Air with respect to
some marketing concepts.
This plan includes the current scenario of Serene Air, its SWOT analysis,
competition in the market, its product offerings and the Marketing Strategy.
23. SITUATION ANALYSIS
Serene Air started their domestic flight operations from six cities of Pakistan in year
2017.
They are having 3 Boeing aircrafts according to the modern and technological
standards.
To gain a more good market share in this dynamic environment, Serene Air must try
hard to get access to the international flights by increasing their fleet size and
retaining the services.
24. SWOT ANALYSIS FOR SERENE
AIR
Strengths: -
1. Rapid Technological Adoption.
2. Having fleet of Boeing 737 & 800.
3. Lies in Top 3 Domestic Share Airlines.
4. Having a good professional staff.
26. CONTINUED…
Opportunities: -
1. Can gain a High Revenue through domestic flight operations.
2. Access to International Market.
3. Can gain customer attraction through Reasonable Prices.
4. Have a chance to upgrade their fleet.
5. Good Competitive advantage against its rivals.
28. PRODUCT OFFERINGS
Serene Air offers the following standard features in their offerings: -
A. A mix of excellence, ambition and customer care.
B. Highest standard of air travel and comfort.
C. Online Reservation/Booking System.
D. Skilled and Professional Pilots.
E. On time Flight schedule.
F. Advance technological Aircraft system.
G. giving a family discount containing 5 members or more.
29. MARKETING STRATEGY
Objectives: -
1. The first objective is to increase their relative market growth so that they can get
access to International Market.
2. The second main objective is to win a distinct position among competitors in
future and reaching break even points of operational profits.
30. CONTINUED…
Target Market: -
The main target market of Serene Air is the middle to upper income professionals
who need a safe comfortable and time saving long journey.
Some Government and Non-government organizations are also their target market
that use Airline services most often.
31. CONTINUED…
Positioning: -
Serene Air is positioning the minds of their customers as most reliable, safe,
convenient, comfortable and value-added services they are offering.
Their main focus is on maintaining their strategy of technology adoption that is
accommodating customers.
32. STRATEGY
Product: -
Serene Air always try to give their customers a good experience by providing them
high quality services.
They value high performance and made it comfortable for their customers.
Serene Air gives special discounts to their regular customers.
33. CONTINUED…
Pricing: -
Serene Air gives a reasonable and affordable price for their customers.
According to the data from their website, one-way flight of Islamabad to Karachi
costs from the range of PKR 16000 – 21000/=.
Marketing Communication: -
Currently, Serene Air is using the platforms of social media (Facebook, Twitter) for
their marketing activities.