marketing analysis of Emirates Airline

2. 
Emirates Airline
Hello Tomorrow
Introduction to Management
Submitted to: Mam Nida

3. 
Farooq Ch. 15309
Amina Rana 15342
Salman Ali 15330
Ayaz Meer 15341
Sohail Qasim 15316
Mudassir Ali Ahmad 15334
Group Members:

4. DEPARTMENT OF MANAGEMENT SCIENCES
BACHELOR IN BUSINESS ADMINISTRATION
GOVERNMENT COLLEGE UNIVERSITY
FAISALABAD
SAHIWAL CAMPUS
Session 2013-2017

6. Goal:
“To reach on top by excelling at what we do.”
Mission Statement:
"We exist to deliver the world's best in-flight experience.“
Vission Statement:
“To make civil aviation safe, leading and sustainable.”
Fly Emirates

7. Tangible objectives pertaining to the goals are :
1. Retain and improve frequent business class traveller's market share.
2. Increase market share 40% to 55% by end of 2014
3. Tap low cost carriers market to achieve company’ return on investment.
4. Promote Dubai's tourism activities and introduce Dubai to the world.
Objectives

8. 
“The Finest in the Sky”
Positioning Statement

9. During the mid-1980s, Gulf Air began to cut back its services to
Dubai as it was concerned it was providing regional feeder flights for
other carriers. As a result Emirates was conceived in March 1985
with backing from Dubai's royal family and was required to operate
independent of government subsidies.
Apart from US$10 million in start-up capital.
By leasing two of its airplanes - Airbus 300 and Boeing 737 - as well
as providing technical and administrative assistance to the new
carrier. Also Emirates leased a new Boeing 737–300 and an Airbus
300B4-200 both from Pakistan International Airlines.
History & Introduction

10. The airline's first flight, flight EK600, was Dubai–Karachi on 25
October 1985.
United Arab Emirates and operates over 1,990 passenger flights per
week, from its hub at Dubai International Airport, to 157 destinations
in 55countries across 6 continents.
The airline ranks amongst the top 10 carriers worldwide in terms
of revenue and passenger kilometres.
Emirates has won numerous awards and is an industry bellwether for
aircraft purchases, purchasing over 130 aircraft in 2007 alone.
History & Introduction

11. The Emirates A380
Boeing 777-300ER
Airbus A340-500
Airbus A340-300
Boeing 777-200LR
Boeing 777-300
Airbus A330-200
Boeing 777-200
FLEETS:

12. 
DESTINATIONS

13. Aviation Industry Awards
Business Traveller awards​
Travel Plus Airline Amenity Bag Awards 2013
Air Cargo World Awards
Air Transport News Awards​
Air Cargo India awards
Awards And Achievements

14. Emirates employed a total of 48,789 staff at the end of the fiscal year
on 31 March 2014.
Of which 13,785 are cabin crew, 4,237 are flight deck crew, 3,509 are
in engineering, and 17,084 are listed as other
Structure And Employment

15. Management Team
 Sheikh Ahmed bin Saeed Al Maktoum
 Chairman and Chief Executive Emirates Airline & Group
 Sir Maurice Flanagan
Executive Chairman Emirates Airline & Group
 Tim Clark
 President Emirates Airline

16.  Gary Chapman
President Group Services & dnata, Emirates Group
Management Team
 Ali Mubarak Al Soori
 Executive Vice President - Chairman's Office,
Facilities/Projects Management and P&L (NA)
 Adel Ahmad Al Redha
 Executive Vice President and Chief Operations Officer

17.  Ismail Ali Albanna
 Executive Vice President dnata
 Abdulaziz Al Ali
 Executive Vice President Human Resources,
Emirates Group
 Nigel Hopkins
 Executive Vice President Service Departments

18. 
In-flight Services:-
First class
There are 3 types of first class seating;
The full suite with doors,
Flat bed 'Sky cruiser' seat (without doors)
Sleeper' seats.
Services

19. 
Business Class
Features:-
Amenities include massage function, privacy partition, winged
headrest with six-way movement
Two individual reading lights and an overhead light per seat, in-seat
power supply
USB Ports and an RCA socket for laptop connection, over 600
channels of entertainment on ICE, shown on a 17 in-wide (43 cm)
TV screen.
Services

20. Features:-
 Sit back in comfortable seats and enjoy the attention to detail
that makes our flights unique.
 Plug in your laptop to the in-seat power to write your latest
blog post. Or call and send emails to people on the ground
with our Wi-Fi, mobile phone and data roaming services on
select aircraft.
 Relax to the latest tunes, or explore new worlds with our
award-winning ice inflight entertainment. Ambient lighting
helps you adjust to your new time zone, so you can arrive
ready to take on the day.
Economy class:-
Services

21.  Emirates Sky Cargo is the air freight division of Emirates.
 Emirates Sky Cargo operates thirteen dedicated cargo aircraft with
ten on order.
Sky Cargo
Services

22. Ground services:-
Passengers may check-in between 2 to 48 hours prior to flight
departure. This may be done over the counter or at the lounge within
the airport. Self-service kiosks are also available at Dubai International
Airport, as well as at certain stations of the Dubai Metro
Services

23. 
Company Environment:
2. External Environment.
1. Internal Environment.

24. SWOT Analysis

26. Strengths:
 First airline in Arab World that offers online booking service.
 Offering long-haul flights, like from US to Dubai.
 Offering self-check-in service for customers at Dubai airport (Emirates
expands).
 An official sponsor of 2006 Fifa World Cup, which will increase its
brand awareness.
SOWT Analysis

27. Weaknesses:-
 High Operation costs due to huge investment on buying aircrafts and
implementing new technologies.
 Known of its high prices of tickets comparing to other airlines.
 Not a member of any global alliances (UAE).
 It doesn't have a hub in Abu Dhabi airport (capital of the UAE).
 Young airline that was established in 1985
SOWT Analysis

28. Opportunities
 The income per capita is growing in UAE.
 Lots of investments will be made by the government of UAE for
developing main airports in Dubai and Abu Dhabi.
 There is an overall growth in the population of the world and in
UAE.
 There is an expected growth in internet users' worldwide and in
UAE.

29. Threats:
It is located in politically instable region and the terrorism activities
have been increased in Middle East recently.
The increase of the fuel prices which raise the operational costs.
The airline industry might face losses of around $ 3 billion if the oil
prices did not reduce (IATA).
New entrants and the raise of low cost airlines.
SWOT Analysis:

30. 
Pestle Analysis

32. Political factors
 The airline industry is affected by political situations, namely wars and
terrorism. For instance, terrorists' activities in different areas globally,
namely USA (11th Sep), UK, Lebanon and Qatar made the regions
unattractive for tourists and business travellers and reduce the
passenger's traffic.
 The political instability affected businesses between airlines in Middle
East and the world by facing a difficulty to join any international
alliances with any of the airlines leaders such as American Airlines.
(Growth phenomena, Nora & Byman
Pestle Analysis

33. Economic factor:-
One of the factors behind any success airlines is having modern airports
supported with latest technology to meet customer's requirements. UAE for
example plans to invest in developing its main airports in Abu Dhabi and
Dubai. The UAE's total investments on airport development over coming
20 years will exceed Dh 71 billion.
The benefits of developing airports are: enhancing economy, reducing
depends on oil revenues by moving into new sector (tourism), increasing
tourists' number and thereby driving profits to airline firms. Globally,
alliance is considered as the main factor of many airlines companies
success as it reduces the operation costs.
Pestle Analysis

34. Social factors:-
 Some of those factors are: increasing world's population, tourists and
number of educated people. For instance, the population is growing
globally, in UAE the population in 2014 was estimated 9.44 million
people and reached to 9,737,127 (9.7 3Million) August 27, 2015; this is
because UAE is a multicultural country.
 As the number of expatriates is increasing, airlines firms' profits will
increase, because those expatriates need to travel to their homeland
sometime. Additionally, many diseases influence the population in many
countries, like Bird Flu, those killer diseases affect airline industry since
they reduce population's level. (Economic Development)
Pestle Analysis

35. Technological factors:-
 The new technology affected airline industry negatively and positively. For
example, the technology of teleconferencing reduced the need for face to face
business meetings which effects on the number of business travellers and on
the sales of business tickets. However, e-booking system makes the reservation
easier and save many expenses such as reducing the printed tickets. (Current
State)
 There is a growth in internet usage worldwide. In the UAE, internet accounts
are likely to grow from 5,859,118 (5.86) in 2012 to exceed around 8,807,226
(8.8 Million) are active internet users in 2015. Thus, local airlines industry
should provide online services to get competitive advantage ex. Emirates
Airline. (UAE to remain on top in Arab Internet market)
Pestle Analysis

36. Legal:-
 Management of Emirates Airlines are able to promotes the
sharing of a common goal among their employee, hence, make
the organization and its team work efficient together.
 As they work together, they are able to focus on the needs of the
entire organization which is to sustain their competitive
advantage.
Pestle Analysis

37. Environmental:-
Emirates fly planes release carbon dioxide through fuel burning.
However, while flying planes, Emirates wants to make a different by
focusing on how to be an ecologically-efficient organization.
They use fewer resources and creating less waste and pollution.
Pestle Analysis

38. Product:
The product of Emirates is the flight which includes the service in
the plane (first, business and economy class) and the holiday
packages that they sell.
The service on the plane is intangible which mean they are
products which cannot be touched. But the food and seats on the
plane are tangible which means they can be touched.
They also offer prices for Hotels in different countries and car
rental.
Market Mix

39. 
Price:-
The pricing strategies of Emirates depend on the seasonality and the
class in which a customer is flying by (for example, Business class)
and sometimes the location. Also, Emirates is cheaper than Virgin
Atlantic for a flight to Dubai, return and Economy class. For Emirates
it costs £407 but Virgin cost for the same flight is £419.
If a customer travels with a companion, they save and fly with
Emirates Business Class from £1,499. In Business Class, there is an
award winning service starts before take-off; services such as
Chauffeur-drive service, lounge access and 40kg baggage allowance.
Pricing also depends on the seasonality of the flight/holiday. For
example a flight to Tokyo Haneda, return Economy Class is £596
which is during December time (winter). But in March time the cost
for the same flight is £661.
Market Mix

40. Place:-
Emirates Airline has about eleven travel shop branches in the UAE and about
122 branches outside the UAE all around the world that provides superior
services.
Emirates Airline has also an online website presented in about nine
languages in order to reach all its target segments from different nationalities.
The location of Emirates airlines is based in Dubai, United Arab, and
Emirates. They operate over 3000 flights per week from its hub in Dubai
International airport. Flights can also be accessed by many airports in the UK
including, London Gatwick, London Heathrow, Manchester, Newcastle and
Birmingham.
Market Mix

41. Promotion:
 For advertising, it has to advertise in newspapers that mostly attract this
segment like Gulf news and in cheap magazines such as Ahlen.
Billboards are good tool for advertising, they are attractive and people
everywhere could see them.
 Through Sports Jerseys
Market Mix

42.  1:- Qatar Airways
 2:- Etihad Airways
 3:- Turkish Airways
Competitors

43. B.C.G Matrix of Emirates Airlines

44.  Emirates segments its market into two major categories, the profitable
(business travellers) and the unprofitable one. These can be further
divided on the basis of the average length of trip, the frequency of trips
and the brand loyal customers
 Business class passengers are the most profitable to Emirates and are
willing to pay for their luxurious services as price is relatively inelastic
for them.
 Emirates loses out where the economy class travellers are concerned as
they are very price elastic and prefer to choose low cost carriers.
Segmentation

45. Targeting Analysis

46.  Children are everybody’s business. The Emirates Airlines target the
kids markets which are of many benefits to the firm. The Emirates
Airlines launched the KIDS GO FREE´ campaign.
 According to this campaign parents can take two under 16 kids along
with them. Hence the kids enjoy free flights on Emirates, meal,
accommodation, travel through the Dubai metro, airport transfers and
various attractions along with two paying adults.
 The campaign attracted over 20,000 people around the world, also
extending partnership with various more local and international
companies. According to the calculation one European family could
save up to 3000 pounds by taking the advantage of the offer.
Target Market & Market Strategy

47.  To provide superior services to their clients, they have recruited
talented and superior people from different countries or different ethnic
group or different culture.
 It is also recommended that their management must do more in
working with diverse people.
 The leadership should provide new ideas which are beneficial for the
company and every time the company upgrades their service delivery
to provide number one services to their customer.
 Emirates need to empower its employees to get profit and competitive
position in competitive global business market.
Recommendation

48.  In the air and on the ground, the Emirates Group is committed to acting
sustainably in the interests of our customers, our business, the natural
environment and the over 110 destinations we serve worldwide.
 The Group has much to be proud of environmentally.
The greatest environmental difference Emirates can make.
All of us can look for ways to be more sustainable and
eco-efficient. Let’s embrace this important challenge.
Sincerely,
H.H. Sheikh Ahmed bin Saeed- Al-Maktoum
Chairman and Chief Executive Emirates Airline & Group
Chairman’s Message:

49. 