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• Batch : 2014
• Course Code : 50121308
• Course Name : Marketing II
• Roll # 720
• Assignment # A 316
Choice of Brand – Emirates Airlines
The Emirates Story
• On 25th October 1985, Emirates flew its first routes out of
Dubai with just two aircraft—a leased Boeing 737 and an
Airbus 300 B4.
• 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.
• It was required to operate independent of government
subsidies, apart from US$10 million in start-up capital.
The Emirates Story
• Emirates leased a new Boeing 737–300 and an Airbus 300B4-
200 both from Pakistan International Airlines.
• Emirates became profitable within its first nine months.
During its first year, it carried about 260,000 passengers and
10,000 tons of freight.
• During the first decade of operations, Emirates recorded strong
growths averaging 30%.
The Emirates Story
• By the early 1990s, Emirates was among the world's fastest
growing airlines; revenue increased approximately
US$100 million each year, approaching US$500 million in the
year 1993.
• With the advent of the Gulf War, business increased for
Emirates as the war kept other airlines out of the area; it was
the only airline to continue flying in the last ten days of the
war.
• Emirates introduced an In-Flight mobile phone service in
2008, becoming the first international carrier to do so.
The Emirates Story
• In February 2011, Air Transport World gave Emirates Airlines
the title of "Airline of the Year" for 2011.
• In the financial year 2011/2012, Emirates carried 34 million
passengers and 1.8 million tonnes of cargo.
• And till date, it continues to be regarded as one of the most
prestigious Airlines in the Aviation Industry. Its ever-growing
network and pride in service and heritage has helped it become
one of the leading aviation brands in the world.
• Welcome Aboard!
Quick Facts
• Founded : 1985
• Commenced operations : 25 October 1985
• IATA (Airline designator) – EK
• Hub : Dubai International Airport
• First Flight – EK600, Dubai To Karachi
His Highness Sheikh Ahmed bin Saeed Al Maktoum – Chairman and CEO of
Emirates Airlines
Tim Clark - President
Maurice Flanagan – Executive Vice
Chairman
Marketing Principles in Airline Management
• The Customer
• The Marketing Environment
• Strategy Formulation
• Product Design and Development
• Pricing and Revenue Management
• Distribution Channel Selection and Control
• Selling, Advertising and Promotional Policies.
Marketing Environment in Aviation
• Political Factors
- Terrorism Threats / Political Instability – Past history of
Airline
- Deregulation and ―Open Skies‖
- Marketing Policies for a Deregulated Environment
- Privatisation
- State Aid
- Airport Slot Allocation
Marketing Environment in Aviation
• Economic Factors
- Economic Growth and Trade Cycle within the ‗hub‘ country
- Economic conditions around the world, especially countries
where the Airline flies frequently
- Economic conditions of holiday destinations
- Factors affecting Business Travel
- Most important – Fuel Costs
The Cabin Crew – First impression of the interiors of any Airline
Marketing Environment in Aviation
• Social Factors
- Average Age of Traveling Population
- Family Travel
- Changing Tastes and Fashion in Holidays
- Female Business Traveler
Marketing Environment in Aviation
• Technological Factors
- In-Flight Entertainment Services
- In-Flight Communication Services
- Internet
- Surface Transport Investment
- Advancement in logistics technology
Marketing Environment in Aviation
• Environmental Factors
- Natural Disasters like Earthquakes (Sometimes they make the
runways of the victim country redundant)
- Volcanic eruptions which spew ash into the sky. It hinders
flights over a large radius of the volcano. For instance, the
Grimsvotn Volcano eruption in Iceland in May 2010. The ash
cloud brought many flights to a standstill.
- Conforming to Environmental needs and undertaking eco-
friendly practices.
Customer Decisions in Aviation
• Decision making process of consumers when choosing an
Airline -
Decide
Time
Shortlist
Destination
Compare
Brochure,
Select best
itinerary
Make
Booking
Customer Decisions in Aviation
• There are at least four customer decisions which must me
analyzed –
1 – Will a trip be made at all?
2 – What mode of transport will be selected?
3 – Which class of seats will be purchased?
• * Customer in the Business Air Travel Market will be different
from Customer in Leisure Air Travel Market
Segmentation in Aviation Market
• Segmentation Variables
Segmentation of Air passengers has been based on the use of
three variables –
1 -- The purpose of passenger‘s journey
2 – The length of their journey
3 – Their country of culture of origin
Priority Point of Business Travelers
• Timings and Frequency
• Punctuality
• Airport Location and Access
• Seat accessibility and Ticket Flexibility
• Frequent Flyer Programme (FPP) Benefits
• Airport Service
• In-Flight Service
Biggest Airport in the World – King Fahd International
Airport, Saudi Arabia
Biggest Airline – Airbus A380 (Passenger capacity – 853)
Airline Segmentation Criteria
• Type of Traveller – Whether a Business Traveller, Leisure
Traveller, Traveler on a religious tour and so on
• Value – For instance, some people place a higher value on
convenient flights, while others feel price is more significant.
• Motivation – Reasons for travel
• Travel Pattern – Frequency
• Buying Pattern – How is travel purchased?
Airline Segmentation Criteria
• Needs and Wants – What are their primary requirements?
How price sensitive are they?
• Satisfaction – How committed are different travelers to the
airlines they use? Are they likely to switch carriers?
• Influence – Are there particular individuals within a segment
who are opinion-leaders? Do they exert influence over the
travel decisions of others?
• Demographics – What age range do travellers come from,
what sex and social class?
Etihad Airways – A rival to Emirates, just next door
Airline Segmentation Criteria
Business Segments (Sponsored by a Company)
1 – Corporate Business Travellers
2 – Individual Business Travellers
3 – Meetings and Conventions
4 – Incentive Groups
5 – Ship Crews
6 – Labour Traffic
Airline Segmentation Criteria
Leisure Segments (Self-sponsored)
1 – Group vacationers
2 – Individual vacationers
3 – Sports interest travellers
4 – Adventure travellers
5 – Cruise passengers
6 – Eco-cultural travellers
Lufthansa – Emirates’ European counterpart
Airline Segmentation Criteria
Other Segments (Sponsored by a Company/Organisation)
1 - Government employees
2 – Refugees
3 – NGOs
4 – Teachers
5 - Millitary
Airline Segmentation Criteria
Other Segments (Self-Sponsored)
1 – Students
2 – Immigrants
3 – Visiting Friends
4 – Religious Travellers
STP of Emirates Airlines
• Segment – Passengers preferring comfort and reliability
• Target – Corporates, Upper Middle Class / Middle Class
• Positioning – Premium Airline
Product Strategy
Airline Product Planning
The Airline Product should not be mistaken for Aircraft or just
other physical items. It is all the services that passengers /
travellers find useful.
Safety, on-time reliability, convenience in terms of airport
proximity, seat availability, frequency, departure, in-flight cabin
services, ground carrier‘s image and so on are all part of the
Airline Product
It is the cumulative experience of a passenger with the Airline
he/she is travelling in.
Qatar Airways – A fierce competitor in the
premium segment
Product Strategy
Airline Product Planning
The following features may be highlighted while discussing the
product strategy for an Airline, in this case Emirates Airlines –
A - Fleet and Schedule Related Product Features
2 – Cabin Configuration and Classes of Service
3 – Network, Frequency and Timings
4 - Punctuality
Product Strategy
Airline Product Planning
B – Customer Service Related Product Features
1 – Point of Sale Service
2 – Reservations and Overbooking
3 – In-Flight Service
4 – Controlling Product Quality
Emirates – Product Strategy
A - Fleet and Schedules-Related Product Features
1 – Fleet of Emirates
• Emirates A380
• Boeing 777-300ER
• Boeing 777-200LR
• Boeing 777-300
• Boeing 777-200
• Airbus A340-500
• Airbus A340-300
• Airbus A330-200
Emirates - Product Strategy
2 – In-Flight Services
First Class
Entertainment and Leisure
Facilities
Emirates - Product Strategy
Fine dining experience in the flight. Regionally
inspired dishes for First Class Passengers
Emirates - Product Strategy
In-Flight Lounge in the First Class of A380 fleet
Emirates - Product Strategy
Business Class Business Class Seats that convert into flat-beds at the
switch of a button, in-seat laptop power supply, extra
long table that can be turned into workstation.
Emirates - Product Strategy
Controlling the Private Zone
A luxury called ‘High Tea’
Emirates - Product Strategy
3 – Entertainment Services
Emirates Airlines has a unique offering to the passengers. Their
Interactive Media and Entertainment service is packaged into a
product offering called ICE.
I – Information
C – Communication
E - Entertainment
Emirates - Product Strategy
Information – Enables the passengers to stay in touch with the
latest news, business and sports headlines from BBC News. Or
take in the view from the aircraft's external cameras and follow
the progress of the flight.
Communication – Enables friends, family of colleagues to be
reached anywhere in the world with a phone call, SMS or mail
from every seat.
Entertainment – Hours of music, the latest Hollywood,
Bollywood and World Cinema movies, and even episodes of the
passenger‘s favourite TV shows can be enjoyed. Or many of the
interactive games can be played.
Emirates - Product Strategy
ICE In-Flight Service accompanied with Touch Screen
Emirates - Product Strategy
Open Skies – Emirates Airline’s In-
Flight Magazine
Emirates - Product Strategy
Other notable Services provided by Emirates are –
• AeroMobile - Using your own GSM mobile phone on selected
flights to make and receive calls, as well as send and receive
SMS messages, just as one would do on the ground. The
service is available on over 100 Emirates flights per day and
that number is growing.
• OnAir – Wi-Fi in the Sky. One can connect to the Wi-Fi on all
A380s
Emirates - Product Strategy
A unique, seven-course meal experience on board the
First Class Cabin.
Emirates - Product Strategy
• Airport Lounges, In-Flight Lounges and Worldwide Lounges
in Houston, Los Angeles, Sao Paulo and Toronto
• Chauffeur-drive – A service for First and Business Class
passengers. Specially commissioned Mercedes and high-end
Volvo cars are available to transport passengers from their
place of residence to the Airport.
• Young Flyers - Priority boarding, changing tables and a
complimentary stroller service at Dubai International Airport is
available for passengers travelling with young passengers. And
while travelling with infants, one can make use of bassinets to
make the journey more comfortable and convenient.
Emirates - Product Strategy
3 – Network, Frequencies and Timings
• Emirates Airlines serves over 120 destination around the
Globe
• The Emirates Route Map is a fascinating application over the
internet which can be used to gauge the extent of Emirates
operations around the world. It denotes the various
destinations that is covered by the Airline
Link - http://www.emirates.com/english/flash/route_map.aspx
Emirates - Product Strategy
Destinations in Asia
Emirates - Product Strategy
Destinations in Middle East
Emirates - Product Strategy
4 – Point-of-Sale Services
• Like most cruising companies and brands, Emirates Airlines
explores new ways of solving problems, cutting costs and
saving more time.
• Though it has retained its traditional travel agents to
materialize the travelling ticket, Emirates has tried to adopt the
e-ticket booking avenues over the internet. This has led to
customer convenience, and at the same time increasing
efficiency and adding value to customer experience.
Emirates - Product Strategy
• Reservations can now be done over the phone
• Another area where Emirates has broken conventional
boundaries is ‗Check in‘. Retaining the traditional desk of
luggage check-in and issuing of the boarding pass, passengers
now have the facility of ‗Self Check-In‘ through kiosks placed
in the Airport.
• The Self Check-In facility allows them to select their seats,
print their own boarding and pass and travel directly to the
terminal
• Emirates Airlines Frequent Flyer Progamme (FFP) called
‗Sykwards‘
Emirates - Product Strategy
According to a survey, Airlines save about $2.65 per kiosk
check-in
Pricing Strategy
Popular Pricing Strategies adopted in the Aviation Industry
• Fare Action
• Introductory Fares
• System excursion-fare sales
• Connect Market sales
• Target Segment Pricing
• Flight-Time specific pricing
• Mileage-based pricing
• Zone Pricing
• Value-added Pricing
• Adjusting Rules and Restrictions
Pricing Strategy
• Advance Purchase Requirements
• One-way versus round-trip purchase requirements
• Minimum/Maximum Stays
• Fare penalties
• Directional Pricing
• Peak/Off-Peak Pricing
• Sales/ticketing/travel windows
• Premium Pricing
Emirates – Pricing Strategy
• Emirates Airlines adopts a pick n mix approach to its pricing
strategy.
• However, the predominant Pricing tactic is ‗Value-added
Pricing‘
• It is to be noted that Emirates Airlines has a niche in the
premium Airline category. It‘s fares are higher than most of its
premium category competitors like British Airways, Cathay
Pacific and almost similar to that of Qatar Airways
• Through Value-added tactic, it justifies its premium pricing
through the unlimited services it renders to the passengers
Emirates – Pricing Strategy
• Even the element of ‗cuisine‘ in Emirates is positioned
exquisitely. There are services available that enhance the travel
value of the passenger and contribute to ease and convenience.
• Another prominent pricing tactic adopted by Emirates is Peak /
Off-peak Season Pricing. The Airline taps various festivals
around the globe like Christmas, Eid and Diwali and hikes its
prices to a ready customer base.
Emirates – Pricing Strategy
• Apart from the tactics mentioned above, Emirates Airlines
introduces new offers on its price and services on a regular
basis.
• An important factor that has influenced the Airline‘s pricing is
the rise in jet-fuel prices. With rising crude-oil prices making a
dent in almost all respects of the economy, Emirates has
always been vary of this factor affecting its prices and
profitability.
Distribution Strategy
• Distribution in the context of Aviation refers to making the
physical product (i.e. – Ticket) available to the customers /
prospective passengers.
• Tickets can be booked through a travel agent, but in the recent
times, technological progression has made online booking
possible. However, even this phenomenon (e-ticket) involves a
middle man. Here the middle man would be the website portal.
Stars on the ceiling of a Emirates carrier actually
reflects real-life constellations
Emirates – Distribution Strategy
• The Emirates Group owns and operates a sister company to
Emirates Airlines which also acts as its direct Travel Agency
extension – Dnata
• Most of the booking takes place in this portal. As a result, the
customer can avail the ticket without parting with a
commission amount that he/she would otherwise have to incur
at a foreign travel agency.
• This perfect marriage of an Airline and a Travel Agency results
in higher revenue for the Emirates Group and increased
convenience and satisfaction to the customers.
Emirates – Distribution Strategy
• Emirates also has opened its online services after the advent of
Internet shopping.
• Now almost everything, from checking the availability of
flights, flight time table, booking seats, customizing services
and checking in with the boarding pass can be done over the
internet.
• The concept of e-ticket brings advantage to both the Airline
and passenger
Promotion Strategy
Airline Promotion Planning
Integrated Marketing Communications (IMC) for an Airline can
take place in the form of –
• Public Relations
• Trade Promotions
• Sales Promotions
• In-store Displays
Promotion Strategy
• Sponsorships
• Advertisements
The broad goal of an Airline‘s promotional activities is to
increase revenues and profits. To accomplish this, a carrier must
engage in activities thin inform, persuade, and remind customers
in the target market about its services.
Emirates – Promotion Strategy
Advertisements
• Emirates Airlines releases a series of multi-media
advertisements under its popular taglines. Some of those
slogans/taglines are –
- Fly Emirates. Keep Discovering
- Fly Emirates. To over 100 destinations
- Fly Emirates, in six continents
- And the latest one is – Fly Emirates. Hello, Tomorrow
Emirates – Promotion Strategy
In-flight Advertising
TV Advertising
• Inflight Media offers a unique "single-cell" environment,
giving a distinct advantage over other forms of mass media.
• Inflight entertainment is an integral and incredibly popular part
of the Emirates passenger experience, as proven by Emirates'
consecutive Skytrax Awards for Airline Excellence, winning
Best Inflight Entertainment in 2005/6/7/8. TV advertising on
Emirates offers an effective way to reach millions of people.
Emirates – Promotion Strategy
Open Skies
• Emirates' inflight magazine, twice voted the world's best by
readers of Executive Travel, reflects our premium and
cosmopolitan customer profile.
• Featuring in-depth profiles of interesting public figures and a
cross section of articles featuring travel, technology, health and
business, the publication is dual-language, with content for
both Arabic- and English-speaking readers.
Emirates – Promotion Strategy
• Public Relations
• Emirates seeks to be an active participant in key public policy
debates impacting the international aviation industry.
• Emirates' operations act as an important catalyst in developing
strong relations between Europe and Dubai.
• Emirates Airline and Dubai Airports have commissioned a
comprehensive study from leading global research firm
Oxford Economics that examines Dubai‘s aviation model.
Emirates – Promotion Strategy
• Open Sky is a Public Affairs journal of Emirates Airlines
• Emirates fully supports the International Air Transport
Association (IATA)‘s ‗Agenda for Freedom‘ programme,
which seeks to promote consensus among liberal-minded
governments to reduce the barriers to cross-border business in
the international aviation community.
• After its initial October 2008 Istanbul conference, in which the
United Arab Emirates (UAE) participated, IATA has been
focused on drafting a Statement of Principles on liberalisation
going forward and undertaking studies on the potential
economic impact of greater commercial freedom in different
national markets.
Deccan Chargers at the IPL
ICC Cricket World Cup
Emirates – Promotion Strategy
• Emirates‘ core philosophy with regard to international aviation
policy can be summarised by the following quote from the President
of Emirates Airlines, Tim Clark:
“We know there has been clear evidence of a progression towards aero
political multilateralism in the past 20 years. More and more countries
are recognising that liberal air access has a multiplier effect on their
economics and protection of their national carriers no longer stacks up
in the cost-benefit equation or serves their national interest.
Unwittingly, they have been subsidising their national carriers through
a fortress mentality of aero political protection and the elimination of
competition, and other primary sectors of their economies have
suffered as a result.”
Emirates – Promotion Strategy
Sponsorship
• Emirates has been committed to sponsorship in both the UAE
and around the world for over twenty years, beginning with
the first powerboat race held in Dubai, in 1987.
• His Highness Sheikh Ahmed bin Saeed Al Maktoum,
Chairman and Chief Executive, Emirates Airline & Group,
sees sponsorship as vital in the airline‘s marketing strategy.
―We believe sponsorships are one of the best ways to connect
with our passengers. They allow us to share and support their
interests and to build a closer relationship with them,‖ he said.
The Ryder Cup
Emirates – Promotion Strategy
• The two disciplines under the ambit of Emirates Sponsorship
are – Arts & Culture and Sports & Races
• The various sports that avail sponsorship from Emirates
Airlines are -
• Football
• Rugby
• Tennis
• Horse Racing
• Golf
• Cricket
• Sailing
• Australian Rules Football
Emirates – Promotion Strategy
• In addition to the airline‘s extensive portfolio of sports
sponsorships, Emirates is dedicated to the growth of global
arts and culture through a number of sponsorships around the
world.
• As dedicated supporters of global arts and culture, Emirates is
proud to sponsor the Australian Symphonies.
• Emirates is the Official Airline of the San Francisco
Symphony, an orchestra that has been an integral part of the
city‘s arts and culture landscape since 1911.
Emirates – Promotion Strategy
• The Dubai International Film Festival is an internationally
acclaimed event and Emirates is a founding partner.
• Emirates is the title sponsor of the Emirates Airline Festival of
Literature, expanding the airline‘s commitment to the arts in
Dubai.
• Emirates Skywards Programme is the official partner of the
Skywards Dubai International Jazz Festival which brings top
level jazz music to the region.
Emirates – Building Brand Equity
• Emirates is a brand that is truly emerging as a global icon with
its logo represented in Arabic script as a symbol of its origin.
• Emirates airline is building an operational and service
approach of a truly global provider, delivering high quality
service and boasting one of the industry‘s youngest and most
advanced fleet that is winning it loyal customers worldwide.
• The airline has received more than 270 accolades and awards
globally for all aspects of its business. One of the most notable
of these accolades is the Skytrax Airline of the Year award,
which is the global barometer of passenger opinions about
airlines around the world
Truly, an Arsenal of Sponsorships
Emirates – Building Brand Equity
• Emirates‘ won the prestigious Official Airline Guide (OAG)
Best Marketing Campaign for its promotion of the start of its
services to New York.
• Given the aspirations of the Emirates brand in being global,
innovative, and a customer-oriented provider of high quality
services, the key to its success has been Emirates airlines
ability to apply the brand in all aspects of its customer
interactions.
• Emirates increased its corporate communications budget to
nearly Dh1 billion including sponsorship advertising and
public relations in the year 2010.
Porter’s Five Forces
Porter’s 5 Forces – Emirates
Analysis
• Force 1 – The Degree of Rivalry
The Degree of Rivalry within an Industry indicates the degree of
activity within the industry.
Though no outright competitive attitude is displayed by Emirates,
its active rivals are – Cathay Pacific, Qatar Airways, Qantas
Airlines and the relatively new breed of the same country of
origin – Etihad Airways
In popular culture, this rivalry between Etihad and Emirates
Airlines can be seen with tongue in cheek jibes between the fans
of Manchester United and Arsenal which are sponsored by the
Airlines respectively.
Porter’s 5 Forces – Emirates
Analysis
• The Emirates Group 2010-2011 Financial Report suggests that
The International Air Transport Association (IATA) that the
top 10 international Airlines have only about 30% of market
share in a US$ 565 billion industry.
• This leaves ample room for all to compete fairly
Porter’s 5 Forces – Emirates
Analysis
• Force 2 – Threat of Entry
The fair threat of entry could be justified in the fact that UAE has a
vibrant economy. Aviation Industry is one of the prosperous industries
in the world with the number of travellers increasing by the year.
The premium travel industry which is presently led by Emirates
Airlines in the UAE could be threatened by an ambitious new Airline,
or worse, by a merger between two established Airlines anywhere in
the world
Having said this with a global perspective, in hindsight, there could be
little threat to the position of Emirates Airlines. UAE is a ruled by
constitutional monarch and industry laws can be modified within the
country to protect the interests of the national carrier.
Rogers Cup
Porter’s 5 Forces – Emirates
Analysis
• Force 3 – The Threat of Substitutes
This threat, in my belief, is a threat that would always be hovering over
Emirates Airlines. As Emirates Airlines has positioned itself as a
premium carrier, it would require a profitable number of passengers to
accept a higher fare and do so every year.
With a good size of the population being Middle-income families in the
UAE, they could be more receptive to budget Airlines while choosing
their carrier.
Moreover, people looking to travel over short distances may prefer to
overlook the extravagant services of Emirates in return for premium
fares and choose another Airline instead.
Porter’s 5 Forces – Emirates
Analysis
• Force 4 – Buyer Power
The Aviation Industry is a multi-billion industry which has no
scope for impulsive purchase. The size of this industry is relative
smaller in comparison to under industries. Hence, the buyers and
in our case, prospective passengers have little power to influence
the market.
Emirates caters to a segment that is not very price sensitive. It‘s
premium offerings and price allows it to retain a segment of loyal
business travellers. Without mass switching to another Airline,
buyers have little power at their perusal.
‘Meet the neighbours’ Ad
campaign
Porter’s 5 Forces – Emirates
Analysis
• Force 5 – Supplier Power
One of the external powers that Emirates continually deals with is
the supplier environment. Supplies are in the form of service
expertise and most critically – Jet fuel.
With Saudi Arabia‘s decision to regulate fuel costs by limiting the
supply of oil, the supplier power in this case is prominent. Rising
fuel costs have led to decrease in the revenue of the Airline and it
also reflects in the marginal increase in the price of their fares
every few months.
Competitor Analysis
• Point of Parity (POP) and Point of Difference (POD) standards
will be taken to understand Emirates‘ competitive stance. For
the sake of simplicity, we will be taking its closest rival within
the same Country – Etihad Airways.
• However, it has already been stated that its competitors in the
premium category are Qatar Airways, British Airlines,
Lufthansa, Cathay Pacific, Air India Express (as direct contrast
to premium category)
Competitor Analysis
Point of Parity
• Both Emirates Airlines and Etihad Airways have stemmed
from the same country – United Arab Emirates
• In effect, we may conclude that both carriers have the same
philosophies and core values
• Both Emirates Airlines and Etihad Airways cater to the
premium segment of travellers. Their target group is
Corporate/Middle and Upper Middle Class
Competitor Analysis
• Both are sponsors to leading football clubs in the field of
football.
Etihad Airways – Manchester City
Emirates – Arsenal
Point of Difference
• Though both carriers stem from the same country, they are the
ventures of two different Emirates (state). Emirates Airlines
belongs to Dubai whereas Etihad Airways was introduced by
Abu Dhabi
Dubai Annual Literature Festival ‘12
Competitor Analysis
• Etihad is backed by an oil rich state / supplier whereas
Emirates is backed by an oil buyer
• Etihad is a relatively new venture which was founded in the
year 2003. Emirates‘ first flight was in the year 1985.
• Emirates has a network of 190 destinations, Etihad has just 55
extensively networked destinations.
• Emirates is a prolific advertiser, Etihad has a relatively
dormant advertising policy.
Emirates - Market Share
• Emirates Airlines currently has a market share of 35 per cent
on the routes from India to Britain
• It has a Market Share of 40% to France
• Has managed to capture 20% of Airline traffic revenue to
Germany,
• With 70% of market share to South Africa, Emirates
demonstrates leadership in this network
• It has also tried to extensively cover America with 31%
market share to New York.
Emirates - SWOT Analysis
Strengths
• Strong Backing of Dubai Govt.
• Advantage of Being neighbours with the oil rich emirate of
Abu Dhabi
• Strong Hub in Dubai
• Satisfied Customer and Preferred Airline of Customers
• Has a strong workforce of over 50,000 employees
• With a tremendous reach covering 190 destinations in 6
continents
Emirates - SWOT Analysis
• Its premium services enhance passenger‘s experience and
travel value
• Rich history of Air Safety and Reliability
• Motivated management
• Employees range from all parts of the world giving the Airline
a diverse service offering.
• Recorded substantial profits despite the Volcanic ash cloud
days which hampered Air traffic for weeks.
• Expanded its Corporate Communication Dept. in 2010
Emirates - SWOT Analysis
• Has a strong advertising base which has increased its visibility
tremendously.
• Has an extensive fleet of carriers from Boeing and Airbus.
• The ability to continuously renew and improve their service in
the airline and aviation while effectively managing the needs
of their target audience is the key to maintaining Emirates
Airline‘s leader status succeeding in having a competitive
edge.
• Ordered 50 Boeing 777, worth $18 billion
Emirates - SWOT Analysis
Weaknesses
• Relying Heavily on International Onward Moving Traffic
• Relying heavily on Corporate/Business Travellers and higher
income groups
• Undue emphasis on state of the art in-flight services which can
be deemed redundant for relatively shorter travel time.
• Premium fare fails to encompass middle-income level groups
which are lost to budget Airlines.
Emirates - SWOT Analysis
• Two of its important and prominent sponsored sports clubs –
Arsenal of the EPL in football and Kings XI Punjab of the IPL
in Cricket have failed to deliver quality performance in the
recent past.
• Emirates‘ switch over to sponsor Deccan Chargers in the latest
season of IPL has failed to induce the feel of being associated
with top class performances too.
• A Brand name that may not necessarily be internationally
receptive and recognized. The word ‗Emirates‘ is also used to
denote ‗states‘ in the UAE. This may hinder international
expansions
Emirates - SWOT Analysis
Opportunities
• Emirates Airlines will resume flights to Tripoli in Libya after
calling of operations there for almost 18 months due to civil
unrest.
• A possible deal between Qantas Airways and Emirates Airlines
to form an alliance as Qantas decides to break 17 year old
partnership with British Airways.
• Invest in R&D to device more fuel efficient ways of operating
the carriers.
..…Also the final service experience as you leave the Aircraft
Emirates - SWOT Analysis
• More structured operations in Egypt after the restoration of
peace in the country.
• Bidding for sponsorship deals for major sports events around
the world like the ICC 20-20 World Cup and other major
tournaments
• Capitalize on dismal operations of Kingfisher Airlines of India
and Qantas Airways of Australia by increasing the market
share.
Emirates - SWOT Analysis
Threats
• Soaring fuel costs
• Increase in operational costs
• Increased competition in the Middle East Market with the
active participation of Etihad Airways which caters to a similar
segment.
• Growing unrest in countries which used to be lucrative
destinations like Syria
Emirates - SWOT Analysis
• Oil embargo on Iran from the EU which may restrict oil flow
into the UAE and thus increase fuel costs further for Airline
operations.
• Euro Zone crisis has led to a drastic decline in business travel
to and from countries in the European Union. This has led to
decrease in revenues from operations in the EU
• Volatile stock and currency market
Thank You for choosing Emirates ….. is also what the cabin crew would
say

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Comprehensive Marketing Presentation on Emirates Airlines

  • 1. • Batch : 2014 • Course Code : 50121308 • Course Name : Marketing II • Roll # 720 • Assignment # A 316
  • 2. Choice of Brand – Emirates Airlines
  • 3.
  • 4. The Emirates Story • On 25th October 1985, Emirates flew its first routes out of Dubai with just two aircraft—a leased Boeing 737 and an Airbus 300 B4. • 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. • It was required to operate independent of government subsidies, apart from US$10 million in start-up capital.
  • 5. The Emirates Story • Emirates leased a new Boeing 737–300 and an Airbus 300B4- 200 both from Pakistan International Airlines. • Emirates became profitable within its first nine months. During its first year, it carried about 260,000 passengers and 10,000 tons of freight. • During the first decade of operations, Emirates recorded strong growths averaging 30%.
  • 6.
  • 7. The Emirates Story • By the early 1990s, Emirates was among the world's fastest growing airlines; revenue increased approximately US$100 million each year, approaching US$500 million in the year 1993. • With the advent of the Gulf War, business increased for Emirates as the war kept other airlines out of the area; it was the only airline to continue flying in the last ten days of the war. • Emirates introduced an In-Flight mobile phone service in 2008, becoming the first international carrier to do so.
  • 8. The Emirates Story • In February 2011, Air Transport World gave Emirates Airlines the title of "Airline of the Year" for 2011. • In the financial year 2011/2012, Emirates carried 34 million passengers and 1.8 million tonnes of cargo. • And till date, it continues to be regarded as one of the most prestigious Airlines in the Aviation Industry. Its ever-growing network and pride in service and heritage has helped it become one of the leading aviation brands in the world. • Welcome Aboard!
  • 9. Quick Facts • Founded : 1985 • Commenced operations : 25 October 1985 • IATA (Airline designator) – EK • Hub : Dubai International Airport • First Flight – EK600, Dubai To Karachi
  • 10. His Highness Sheikh Ahmed bin Saeed Al Maktoum – Chairman and CEO of Emirates Airlines
  • 11. Tim Clark - President Maurice Flanagan – Executive Vice Chairman
  • 12. Marketing Principles in Airline Management • The Customer • The Marketing Environment • Strategy Formulation • Product Design and Development • Pricing and Revenue Management • Distribution Channel Selection and Control • Selling, Advertising and Promotional Policies.
  • 13. Marketing Environment in Aviation • Political Factors - Terrorism Threats / Political Instability – Past history of Airline - Deregulation and ―Open Skies‖ - Marketing Policies for a Deregulated Environment - Privatisation - State Aid - Airport Slot Allocation
  • 14. Marketing Environment in Aviation • Economic Factors - Economic Growth and Trade Cycle within the ‗hub‘ country - Economic conditions around the world, especially countries where the Airline flies frequently - Economic conditions of holiday destinations - Factors affecting Business Travel - Most important – Fuel Costs
  • 15. The Cabin Crew – First impression of the interiors of any Airline
  • 16. Marketing Environment in Aviation • Social Factors - Average Age of Traveling Population - Family Travel - Changing Tastes and Fashion in Holidays - Female Business Traveler
  • 17. Marketing Environment in Aviation • Technological Factors - In-Flight Entertainment Services - In-Flight Communication Services - Internet - Surface Transport Investment - Advancement in logistics technology
  • 18. Marketing Environment in Aviation • Environmental Factors - Natural Disasters like Earthquakes (Sometimes they make the runways of the victim country redundant) - Volcanic eruptions which spew ash into the sky. It hinders flights over a large radius of the volcano. For instance, the Grimsvotn Volcano eruption in Iceland in May 2010. The ash cloud brought many flights to a standstill. - Conforming to Environmental needs and undertaking eco- friendly practices.
  • 19.
  • 20. Customer Decisions in Aviation • Decision making process of consumers when choosing an Airline - Decide Time Shortlist Destination Compare Brochure, Select best itinerary Make Booking
  • 21. Customer Decisions in Aviation • There are at least four customer decisions which must me analyzed – 1 – Will a trip be made at all? 2 – What mode of transport will be selected? 3 – Which class of seats will be purchased? • * Customer in the Business Air Travel Market will be different from Customer in Leisure Air Travel Market
  • 22. Segmentation in Aviation Market • Segmentation Variables Segmentation of Air passengers has been based on the use of three variables – 1 -- The purpose of passenger‘s journey 2 – The length of their journey 3 – Their country of culture of origin
  • 23. Priority Point of Business Travelers • Timings and Frequency • Punctuality • Airport Location and Access • Seat accessibility and Ticket Flexibility • Frequent Flyer Programme (FPP) Benefits • Airport Service • In-Flight Service
  • 24. Biggest Airport in the World – King Fahd International Airport, Saudi Arabia
  • 25. Biggest Airline – Airbus A380 (Passenger capacity – 853)
  • 26. Airline Segmentation Criteria • Type of Traveller – Whether a Business Traveller, Leisure Traveller, Traveler on a religious tour and so on • Value – For instance, some people place a higher value on convenient flights, while others feel price is more significant. • Motivation – Reasons for travel • Travel Pattern – Frequency • Buying Pattern – How is travel purchased?
  • 27. Airline Segmentation Criteria • Needs and Wants – What are their primary requirements? How price sensitive are they? • Satisfaction – How committed are different travelers to the airlines they use? Are they likely to switch carriers? • Influence – Are there particular individuals within a segment who are opinion-leaders? Do they exert influence over the travel decisions of others? • Demographics – What age range do travellers come from, what sex and social class?
  • 28. Etihad Airways – A rival to Emirates, just next door
  • 29. Airline Segmentation Criteria Business Segments (Sponsored by a Company) 1 – Corporate Business Travellers 2 – Individual Business Travellers 3 – Meetings and Conventions 4 – Incentive Groups 5 – Ship Crews 6 – Labour Traffic
  • 30. Airline Segmentation Criteria Leisure Segments (Self-sponsored) 1 – Group vacationers 2 – Individual vacationers 3 – Sports interest travellers 4 – Adventure travellers 5 – Cruise passengers 6 – Eco-cultural travellers
  • 31. Lufthansa – Emirates’ European counterpart
  • 32. Airline Segmentation Criteria Other Segments (Sponsored by a Company/Organisation) 1 - Government employees 2 – Refugees 3 – NGOs 4 – Teachers 5 - Millitary
  • 33. Airline Segmentation Criteria Other Segments (Self-Sponsored) 1 – Students 2 – Immigrants 3 – Visiting Friends 4 – Religious Travellers
  • 34. STP of Emirates Airlines • Segment – Passengers preferring comfort and reliability • Target – Corporates, Upper Middle Class / Middle Class • Positioning – Premium Airline
  • 35. Product Strategy Airline Product Planning The Airline Product should not be mistaken for Aircraft or just other physical items. It is all the services that passengers / travellers find useful. Safety, on-time reliability, convenience in terms of airport proximity, seat availability, frequency, departure, in-flight cabin services, ground carrier‘s image and so on are all part of the Airline Product It is the cumulative experience of a passenger with the Airline he/she is travelling in.
  • 36. Qatar Airways – A fierce competitor in the premium segment
  • 37. Product Strategy Airline Product Planning The following features may be highlighted while discussing the product strategy for an Airline, in this case Emirates Airlines – A - Fleet and Schedule Related Product Features 2 – Cabin Configuration and Classes of Service 3 – Network, Frequency and Timings 4 - Punctuality
  • 38. Product Strategy Airline Product Planning B – Customer Service Related Product Features 1 – Point of Sale Service 2 – Reservations and Overbooking 3 – In-Flight Service 4 – Controlling Product Quality
  • 39. Emirates – Product Strategy A - Fleet and Schedules-Related Product Features 1 – Fleet of Emirates • Emirates A380 • Boeing 777-300ER • Boeing 777-200LR • Boeing 777-300 • Boeing 777-200 • Airbus A340-500 • Airbus A340-300 • Airbus A330-200
  • 40. Emirates - Product Strategy 2 – In-Flight Services First Class Entertainment and Leisure Facilities
  • 41. Emirates - Product Strategy Fine dining experience in the flight. Regionally inspired dishes for First Class Passengers
  • 42. Emirates - Product Strategy In-Flight Lounge in the First Class of A380 fleet
  • 43. Emirates - Product Strategy Business Class Business Class Seats that convert into flat-beds at the switch of a button, in-seat laptop power supply, extra long table that can be turned into workstation.
  • 44. Emirates - Product Strategy Controlling the Private Zone A luxury called ‘High Tea’
  • 45. Emirates - Product Strategy 3 – Entertainment Services Emirates Airlines has a unique offering to the passengers. Their Interactive Media and Entertainment service is packaged into a product offering called ICE. I – Information C – Communication E - Entertainment
  • 46. Emirates - Product Strategy Information – Enables the passengers to stay in touch with the latest news, business and sports headlines from BBC News. Or take in the view from the aircraft's external cameras and follow the progress of the flight. Communication – Enables friends, family of colleagues to be reached anywhere in the world with a phone call, SMS or mail from every seat. Entertainment – Hours of music, the latest Hollywood, Bollywood and World Cinema movies, and even episodes of the passenger‘s favourite TV shows can be enjoyed. Or many of the interactive games can be played.
  • 47. Emirates - Product Strategy ICE In-Flight Service accompanied with Touch Screen
  • 48. Emirates - Product Strategy Open Skies – Emirates Airline’s In- Flight Magazine
  • 49. Emirates - Product Strategy Other notable Services provided by Emirates are – • AeroMobile - Using your own GSM mobile phone on selected flights to make and receive calls, as well as send and receive SMS messages, just as one would do on the ground. The service is available on over 100 Emirates flights per day and that number is growing. • OnAir – Wi-Fi in the Sky. One can connect to the Wi-Fi on all A380s
  • 50. Emirates - Product Strategy A unique, seven-course meal experience on board the First Class Cabin.
  • 51. Emirates - Product Strategy • Airport Lounges, In-Flight Lounges and Worldwide Lounges in Houston, Los Angeles, Sao Paulo and Toronto • Chauffeur-drive – A service for First and Business Class passengers. Specially commissioned Mercedes and high-end Volvo cars are available to transport passengers from their place of residence to the Airport. • Young Flyers - Priority boarding, changing tables and a complimentary stroller service at Dubai International Airport is available for passengers travelling with young passengers. And while travelling with infants, one can make use of bassinets to make the journey more comfortable and convenient.
  • 52. Emirates - Product Strategy 3 – Network, Frequencies and Timings • Emirates Airlines serves over 120 destination around the Globe • The Emirates Route Map is a fascinating application over the internet which can be used to gauge the extent of Emirates operations around the world. It denotes the various destinations that is covered by the Airline Link - http://www.emirates.com/english/flash/route_map.aspx
  • 53. Emirates - Product Strategy Destinations in Asia
  • 54. Emirates - Product Strategy Destinations in Middle East
  • 55. Emirates - Product Strategy 4 – Point-of-Sale Services • Like most cruising companies and brands, Emirates Airlines explores new ways of solving problems, cutting costs and saving more time. • Though it has retained its traditional travel agents to materialize the travelling ticket, Emirates has tried to adopt the e-ticket booking avenues over the internet. This has led to customer convenience, and at the same time increasing efficiency and adding value to customer experience.
  • 56. Emirates - Product Strategy • Reservations can now be done over the phone • Another area where Emirates has broken conventional boundaries is ‗Check in‘. Retaining the traditional desk of luggage check-in and issuing of the boarding pass, passengers now have the facility of ‗Self Check-In‘ through kiosks placed in the Airport. • The Self Check-In facility allows them to select their seats, print their own boarding and pass and travel directly to the terminal • Emirates Airlines Frequent Flyer Progamme (FFP) called ‗Sykwards‘
  • 57. Emirates - Product Strategy According to a survey, Airlines save about $2.65 per kiosk check-in
  • 58. Pricing Strategy Popular Pricing Strategies adopted in the Aviation Industry • Fare Action • Introductory Fares • System excursion-fare sales • Connect Market sales • Target Segment Pricing • Flight-Time specific pricing • Mileage-based pricing • Zone Pricing • Value-added Pricing • Adjusting Rules and Restrictions
  • 59. Pricing Strategy • Advance Purchase Requirements • One-way versus round-trip purchase requirements • Minimum/Maximum Stays • Fare penalties • Directional Pricing • Peak/Off-Peak Pricing • Sales/ticketing/travel windows • Premium Pricing
  • 60. Emirates – Pricing Strategy • Emirates Airlines adopts a pick n mix approach to its pricing strategy. • However, the predominant Pricing tactic is ‗Value-added Pricing‘ • It is to be noted that Emirates Airlines has a niche in the premium Airline category. It‘s fares are higher than most of its premium category competitors like British Airways, Cathay Pacific and almost similar to that of Qatar Airways • Through Value-added tactic, it justifies its premium pricing through the unlimited services it renders to the passengers
  • 61.
  • 62. Emirates – Pricing Strategy • Even the element of ‗cuisine‘ in Emirates is positioned exquisitely. There are services available that enhance the travel value of the passenger and contribute to ease and convenience. • Another prominent pricing tactic adopted by Emirates is Peak / Off-peak Season Pricing. The Airline taps various festivals around the globe like Christmas, Eid and Diwali and hikes its prices to a ready customer base.
  • 63. Emirates – Pricing Strategy • Apart from the tactics mentioned above, Emirates Airlines introduces new offers on its price and services on a regular basis. • An important factor that has influenced the Airline‘s pricing is the rise in jet-fuel prices. With rising crude-oil prices making a dent in almost all respects of the economy, Emirates has always been vary of this factor affecting its prices and profitability.
  • 64. Distribution Strategy • Distribution in the context of Aviation refers to making the physical product (i.e. – Ticket) available to the customers / prospective passengers. • Tickets can be booked through a travel agent, but in the recent times, technological progression has made online booking possible. However, even this phenomenon (e-ticket) involves a middle man. Here the middle man would be the website portal.
  • 65. Stars on the ceiling of a Emirates carrier actually reflects real-life constellations
  • 66. Emirates – Distribution Strategy • The Emirates Group owns and operates a sister company to Emirates Airlines which also acts as its direct Travel Agency extension – Dnata • Most of the booking takes place in this portal. As a result, the customer can avail the ticket without parting with a commission amount that he/she would otherwise have to incur at a foreign travel agency. • This perfect marriage of an Airline and a Travel Agency results in higher revenue for the Emirates Group and increased convenience and satisfaction to the customers.
  • 67. Emirates – Distribution Strategy • Emirates also has opened its online services after the advent of Internet shopping. • Now almost everything, from checking the availability of flights, flight time table, booking seats, customizing services and checking in with the boarding pass can be done over the internet. • The concept of e-ticket brings advantage to both the Airline and passenger
  • 68. Promotion Strategy Airline Promotion Planning Integrated Marketing Communications (IMC) for an Airline can take place in the form of – • Public Relations • Trade Promotions • Sales Promotions • In-store Displays
  • 69.
  • 70. Promotion Strategy • Sponsorships • Advertisements The broad goal of an Airline‘s promotional activities is to increase revenues and profits. To accomplish this, a carrier must engage in activities thin inform, persuade, and remind customers in the target market about its services.
  • 71. Emirates – Promotion Strategy Advertisements • Emirates Airlines releases a series of multi-media advertisements under its popular taglines. Some of those slogans/taglines are – - Fly Emirates. Keep Discovering - Fly Emirates. To over 100 destinations - Fly Emirates, in six continents - And the latest one is – Fly Emirates. Hello, Tomorrow
  • 72.
  • 73. Emirates – Promotion Strategy In-flight Advertising TV Advertising • Inflight Media offers a unique "single-cell" environment, giving a distinct advantage over other forms of mass media. • Inflight entertainment is an integral and incredibly popular part of the Emirates passenger experience, as proven by Emirates' consecutive Skytrax Awards for Airline Excellence, winning Best Inflight Entertainment in 2005/6/7/8. TV advertising on Emirates offers an effective way to reach millions of people.
  • 74. Emirates – Promotion Strategy Open Skies • Emirates' inflight magazine, twice voted the world's best by readers of Executive Travel, reflects our premium and cosmopolitan customer profile. • Featuring in-depth profiles of interesting public figures and a cross section of articles featuring travel, technology, health and business, the publication is dual-language, with content for both Arabic- and English-speaking readers.
  • 75.
  • 76. Emirates – Promotion Strategy • Public Relations • Emirates seeks to be an active participant in key public policy debates impacting the international aviation industry. • Emirates' operations act as an important catalyst in developing strong relations between Europe and Dubai. • Emirates Airline and Dubai Airports have commissioned a comprehensive study from leading global research firm Oxford Economics that examines Dubai‘s aviation model.
  • 77. Emirates – Promotion Strategy • Open Sky is a Public Affairs journal of Emirates Airlines • Emirates fully supports the International Air Transport Association (IATA)‘s ‗Agenda for Freedom‘ programme, which seeks to promote consensus among liberal-minded governments to reduce the barriers to cross-border business in the international aviation community. • After its initial October 2008 Istanbul conference, in which the United Arab Emirates (UAE) participated, IATA has been focused on drafting a Statement of Principles on liberalisation going forward and undertaking studies on the potential economic impact of greater commercial freedom in different national markets.
  • 80. Emirates – Promotion Strategy • Emirates‘ core philosophy with regard to international aviation policy can be summarised by the following quote from the President of Emirates Airlines, Tim Clark: “We know there has been clear evidence of a progression towards aero political multilateralism in the past 20 years. More and more countries are recognising that liberal air access has a multiplier effect on their economics and protection of their national carriers no longer stacks up in the cost-benefit equation or serves their national interest. Unwittingly, they have been subsidising their national carriers through a fortress mentality of aero political protection and the elimination of competition, and other primary sectors of their economies have suffered as a result.”
  • 81. Emirates – Promotion Strategy Sponsorship • Emirates has been committed to sponsorship in both the UAE and around the world for over twenty years, beginning with the first powerboat race held in Dubai, in 1987. • His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group, sees sponsorship as vital in the airline‘s marketing strategy. ―We believe sponsorships are one of the best ways to connect with our passengers. They allow us to share and support their interests and to build a closer relationship with them,‖ he said.
  • 83. Emirates – Promotion Strategy • The two disciplines under the ambit of Emirates Sponsorship are – Arts & Culture and Sports & Races • The various sports that avail sponsorship from Emirates Airlines are - • Football • Rugby • Tennis • Horse Racing • Golf • Cricket • Sailing • Australian Rules Football
  • 84. Emirates – Promotion Strategy • In addition to the airline‘s extensive portfolio of sports sponsorships, Emirates is dedicated to the growth of global arts and culture through a number of sponsorships around the world. • As dedicated supporters of global arts and culture, Emirates is proud to sponsor the Australian Symphonies. • Emirates is the Official Airline of the San Francisco Symphony, an orchestra that has been an integral part of the city‘s arts and culture landscape since 1911.
  • 85. Emirates – Promotion Strategy • The Dubai International Film Festival is an internationally acclaimed event and Emirates is a founding partner. • Emirates is the title sponsor of the Emirates Airline Festival of Literature, expanding the airline‘s commitment to the arts in Dubai. • Emirates Skywards Programme is the official partner of the Skywards Dubai International Jazz Festival which brings top level jazz music to the region.
  • 86. Emirates – Building Brand Equity • Emirates is a brand that is truly emerging as a global icon with its logo represented in Arabic script as a symbol of its origin. • Emirates airline is building an operational and service approach of a truly global provider, delivering high quality service and boasting one of the industry‘s youngest and most advanced fleet that is winning it loyal customers worldwide. • The airline has received more than 270 accolades and awards globally for all aspects of its business. One of the most notable of these accolades is the Skytrax Airline of the Year award, which is the global barometer of passenger opinions about airlines around the world
  • 87. Truly, an Arsenal of Sponsorships
  • 88. Emirates – Building Brand Equity • Emirates‘ won the prestigious Official Airline Guide (OAG) Best Marketing Campaign for its promotion of the start of its services to New York. • Given the aspirations of the Emirates brand in being global, innovative, and a customer-oriented provider of high quality services, the key to its success has been Emirates airlines ability to apply the brand in all aspects of its customer interactions. • Emirates increased its corporate communications budget to nearly Dh1 billion including sponsorship advertising and public relations in the year 2010.
  • 90. Porter’s 5 Forces – Emirates Analysis • Force 1 – The Degree of Rivalry The Degree of Rivalry within an Industry indicates the degree of activity within the industry. Though no outright competitive attitude is displayed by Emirates, its active rivals are – Cathay Pacific, Qatar Airways, Qantas Airlines and the relatively new breed of the same country of origin – Etihad Airways In popular culture, this rivalry between Etihad and Emirates Airlines can be seen with tongue in cheek jibes between the fans of Manchester United and Arsenal which are sponsored by the Airlines respectively.
  • 91. Porter’s 5 Forces – Emirates Analysis • The Emirates Group 2010-2011 Financial Report suggests that The International Air Transport Association (IATA) that the top 10 international Airlines have only about 30% of market share in a US$ 565 billion industry. • This leaves ample room for all to compete fairly
  • 92. Porter’s 5 Forces – Emirates Analysis • Force 2 – Threat of Entry The fair threat of entry could be justified in the fact that UAE has a vibrant economy. Aviation Industry is one of the prosperous industries in the world with the number of travellers increasing by the year. The premium travel industry which is presently led by Emirates Airlines in the UAE could be threatened by an ambitious new Airline, or worse, by a merger between two established Airlines anywhere in the world Having said this with a global perspective, in hindsight, there could be little threat to the position of Emirates Airlines. UAE is a ruled by constitutional monarch and industry laws can be modified within the country to protect the interests of the national carrier.
  • 94. Porter’s 5 Forces – Emirates Analysis • Force 3 – The Threat of Substitutes This threat, in my belief, is a threat that would always be hovering over Emirates Airlines. As Emirates Airlines has positioned itself as a premium carrier, it would require a profitable number of passengers to accept a higher fare and do so every year. With a good size of the population being Middle-income families in the UAE, they could be more receptive to budget Airlines while choosing their carrier. Moreover, people looking to travel over short distances may prefer to overlook the extravagant services of Emirates in return for premium fares and choose another Airline instead.
  • 95. Porter’s 5 Forces – Emirates Analysis • Force 4 – Buyer Power The Aviation Industry is a multi-billion industry which has no scope for impulsive purchase. The size of this industry is relative smaller in comparison to under industries. Hence, the buyers and in our case, prospective passengers have little power to influence the market. Emirates caters to a segment that is not very price sensitive. It‘s premium offerings and price allows it to retain a segment of loyal business travellers. Without mass switching to another Airline, buyers have little power at their perusal.
  • 97. Porter’s 5 Forces – Emirates Analysis • Force 5 – Supplier Power One of the external powers that Emirates continually deals with is the supplier environment. Supplies are in the form of service expertise and most critically – Jet fuel. With Saudi Arabia‘s decision to regulate fuel costs by limiting the supply of oil, the supplier power in this case is prominent. Rising fuel costs have led to decrease in the revenue of the Airline and it also reflects in the marginal increase in the price of their fares every few months.
  • 98. Competitor Analysis • Point of Parity (POP) and Point of Difference (POD) standards will be taken to understand Emirates‘ competitive stance. For the sake of simplicity, we will be taking its closest rival within the same Country – Etihad Airways. • However, it has already been stated that its competitors in the premium category are Qatar Airways, British Airlines, Lufthansa, Cathay Pacific, Air India Express (as direct contrast to premium category)
  • 99. Competitor Analysis Point of Parity • Both Emirates Airlines and Etihad Airways have stemmed from the same country – United Arab Emirates • In effect, we may conclude that both carriers have the same philosophies and core values • Both Emirates Airlines and Etihad Airways cater to the premium segment of travellers. Their target group is Corporate/Middle and Upper Middle Class
  • 100. Competitor Analysis • Both are sponsors to leading football clubs in the field of football. Etihad Airways – Manchester City Emirates – Arsenal Point of Difference • Though both carriers stem from the same country, they are the ventures of two different Emirates (state). Emirates Airlines belongs to Dubai whereas Etihad Airways was introduced by Abu Dhabi
  • 101. Dubai Annual Literature Festival ‘12
  • 102. Competitor Analysis • Etihad is backed by an oil rich state / supplier whereas Emirates is backed by an oil buyer • Etihad is a relatively new venture which was founded in the year 2003. Emirates‘ first flight was in the year 1985. • Emirates has a network of 190 destinations, Etihad has just 55 extensively networked destinations. • Emirates is a prolific advertiser, Etihad has a relatively dormant advertising policy.
  • 103. Emirates - Market Share • Emirates Airlines currently has a market share of 35 per cent on the routes from India to Britain • It has a Market Share of 40% to France • Has managed to capture 20% of Airline traffic revenue to Germany, • With 70% of market share to South Africa, Emirates demonstrates leadership in this network • It has also tried to extensively cover America with 31% market share to New York.
  • 104. Emirates - SWOT Analysis Strengths • Strong Backing of Dubai Govt. • Advantage of Being neighbours with the oil rich emirate of Abu Dhabi • Strong Hub in Dubai • Satisfied Customer and Preferred Airline of Customers • Has a strong workforce of over 50,000 employees • With a tremendous reach covering 190 destinations in 6 continents
  • 105. Emirates - SWOT Analysis • Its premium services enhance passenger‘s experience and travel value • Rich history of Air Safety and Reliability • Motivated management • Employees range from all parts of the world giving the Airline a diverse service offering. • Recorded substantial profits despite the Volcanic ash cloud days which hampered Air traffic for weeks. • Expanded its Corporate Communication Dept. in 2010
  • 106.
  • 107. Emirates - SWOT Analysis • Has a strong advertising base which has increased its visibility tremendously. • Has an extensive fleet of carriers from Boeing and Airbus. • The ability to continuously renew and improve their service in the airline and aviation while effectively managing the needs of their target audience is the key to maintaining Emirates Airline‘s leader status succeeding in having a competitive edge. • Ordered 50 Boeing 777, worth $18 billion
  • 108. Emirates - SWOT Analysis Weaknesses • Relying Heavily on International Onward Moving Traffic • Relying heavily on Corporate/Business Travellers and higher income groups • Undue emphasis on state of the art in-flight services which can be deemed redundant for relatively shorter travel time. • Premium fare fails to encompass middle-income level groups which are lost to budget Airlines.
  • 109. Emirates - SWOT Analysis • Two of its important and prominent sponsored sports clubs – Arsenal of the EPL in football and Kings XI Punjab of the IPL in Cricket have failed to deliver quality performance in the recent past. • Emirates‘ switch over to sponsor Deccan Chargers in the latest season of IPL has failed to induce the feel of being associated with top class performances too. • A Brand name that may not necessarily be internationally receptive and recognized. The word ‗Emirates‘ is also used to denote ‗states‘ in the UAE. This may hinder international expansions
  • 110. Emirates - SWOT Analysis Opportunities • Emirates Airlines will resume flights to Tripoli in Libya after calling of operations there for almost 18 months due to civil unrest. • A possible deal between Qantas Airways and Emirates Airlines to form an alliance as Qantas decides to break 17 year old partnership with British Airways. • Invest in R&D to device more fuel efficient ways of operating the carriers.
  • 111. ..…Also the final service experience as you leave the Aircraft
  • 112. Emirates - SWOT Analysis • More structured operations in Egypt after the restoration of peace in the country. • Bidding for sponsorship deals for major sports events around the world like the ICC 20-20 World Cup and other major tournaments • Capitalize on dismal operations of Kingfisher Airlines of India and Qantas Airways of Australia by increasing the market share.
  • 113. Emirates - SWOT Analysis Threats • Soaring fuel costs • Increase in operational costs • Increased competition in the Middle East Market with the active participation of Etihad Airways which caters to a similar segment. • Growing unrest in countries which used to be lucrative destinations like Syria
  • 114. Emirates - SWOT Analysis • Oil embargo on Iran from the EU which may restrict oil flow into the UAE and thus increase fuel costs further for Airline operations. • Euro Zone crisis has led to a drastic decline in business travel to and from countries in the European Union. This has led to decrease in revenues from operations in the EU • Volatile stock and currency market
  • 115. Thank You for choosing Emirates ….. is also what the cabin crew would say

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  1. Source - http://www.thehindubusinessline.com/industry-and-economy/logistics/article2139507.ece