Professional Documents
Culture Documents
PROJECT ON
SECTION : 51 INSTRUCTORS NAME: Mohammed El-Adly Group Members : a. Sakina Fatima b. Ting Ting Lu c. Huda Ahmad d. Nouran Shami 1003295 1011619 1003095 1013090
Table of content
I. Introduction to the Project II.Executive Summary of Etihad Airways III. Etihad Airways Marketing Strategy Targeted customer IV.Determining the Needs and wants of the customers V.Position VI.Integrated Marketing Mix a) Product b) Price c) Place d) Promotion I. SWOT Analysis II.Sponsorship III.Brand loyalty IV.Social responsibility V.Conclusion
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Awards
Etihad has received a wide line of awards which stems its position as the leading airline brand in the world including Worlds Leading Airline at World Travel Awards in 2009 and 2010. On 23 June 2011, Etihad was named the Best First Class airline in the world, number six airline overall by Skytrax. On 22 June 2011, Etihad was recognized in Pan Arab Web Awards, and Etihad won sponsorship award on 9th December 2010, for Manchester City partnership. The number of passenger rose from 6.0 to 6.3 million in 2009 and the revenue passenger kilometer reported increase of 15.2%. Therefore, in 2009 the revenue exceeded to US $2.3 billion. In 2004 it won the worlds leading new airline by World Travel Awards. In 2005, it got rewarded for Outstanding Food Service by a Carrier Pax International magazine. In 2006, it achieved the Golden award by U.A.E Web Awards. In 2007 it was selected as Worlds leading travel television commercial by 14th annual World Travel Awards. In 2008, awarded Best business class service" by Business Traveler USA. In 2009 it was awarded Top Worldwide Airline (Silver), by Wanderlust Travel Awards, London, UK. In 2010 awarded as Best LongHaul Airline by Business Travel Awards 2010. ()
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V. Position
As one of the youngest airlines around the world, Etihad Airways has achieved a great success of their business. However, every achievement they got can owe to the marketing strategy that they are following, such as promotional strategy, strong brand impression and loyalty, or high quality and continuing innovation of services. Etihad Airways provides both services and products in its business. It divides the class into three different segments according to variable pricing and, of course, offering varying services. At this point, Etihad positions variable services and products on different segmentations according to what consumers select, that means what price the consumer has paid. Etihad differentiate its services by three main classes. People who are in luxurious class have particular lounges in airport. Moreover, they are powerful, which indicates they can ask for services as the way they prefer, and even they can keep their lifestyles during the flight. The best and most expensive class is the Diamond First class, and it has been award by four the World Best honor, that are world best first class, best first class seat, best first class onboard catering, and the passenger choice award. The gratifying achievement that they have got is not accidental, but inevitable if you know what has been offering. The Diamond First Class of Etihad involves private suite which includes a sliding door, and you can charge your electronic device in it; the seats in the suite are brand of Poltrona Frau, and you have own bathroom; moreover, you can order your favorite food in the board range of menu, which further exceed other classes and airlines, however, comparing to five-star hotels (Miller, 2010). According to different consumers, Etihad Airways provides another two classes to satisfy consumers demand. One consumer segment that want a better service and food, but they also think that the Diamond first class is too expensive; therefore, they can select the second class: the Pearl Business class, which has won the award of The World Best Business Class for four years. On this class, consumers can receive a relative better service and minor changes on food
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menu with less money paid. It is a relative inexpensive way in air for travelers (Etihad Airways, 2011). The Coral economy Class is the third class for selecting. For most people, they do not want to pay too much only on a flight ticket, so they will choose economy class for travelling. Etihad makes the crew keep in mind to improve and complete their service quality (Etihad airways, 2011). Etihad tickets price varies depending on both class and timing.
Etihad also supplies some additional services, like holiday programs, cargo air transportation for goods, airport pickup and so on. However, these extra services are free for first class and business class, and conditional for economy class. Etihad strives to complete its services all the time by several aspects, like selling tickets, adding lounges, providing customer support, and creating programs. Etihad Airways set a number of service offices in its destinations worldwide in order to providing customer support and tickets sold. It established a network agency for further touching customers, and it supplies these services online as well. In addition, consumers can book their tickets through phone, too. For better services for consumers, Etihad has set a few selling points in malls or some shopping places and offered more languages to provide consumers more convenience to purchase tickets and satisfy consumers need and want as better as it can.
A product is anything that can be offered to a market that might satisfy a want or need. () Passengers on board Etihad airways will spend considerable time and effort gathering information about price, quality, etc., before making a decision to travel abroad, so it is considered as shopping products of consumer products. () Etihad product is air transportation, with some services that are divided into three guest travel class, Etihad airline targets the business travelers who are willing to pay a price for quality service and also the last minute flyers.
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Features:
Luxurious flatbed seat: The seat rotates 180 degrees. It can expand into 2m flatbed seats that upholstered with leather. It has a privacy shell that allows a greater amount of privacy. Built-in massage facility and a headrest that can be adjusted in six-way to ensure relaxing. Dining:
They offer five-star hospitality that serves a wide variety type of food. Passengers dishes are prepared by award-winning chefs. Boutique wines are found for non-Muslims. There is possibility to invite other to have a dining for two.
Entertainment: Passengers can enjoy watching the latest movies, TV shows and listening to music with a 58cm personal LCD. E-BOX in-flight system and the best in interactive games. To ensure that the show goes uninterrupted Etihad airways provide Noisecanceling headsets.
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The seats are equipped with in-seat power sockets to recharge laptop or iPod.
Privacy & rest: Passengers can get total privacy by slide their screen doors shut. They can play, work, and rest in their personal space. There is a collection of personal care products and a large wash basin. To let passengers have a perfect atmosphere for every stage of flying, they provide in flight mood lighting system.
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The seat rotates 180 degrees. It can expand into1.85 flatbed. It has a privacy shell that allows a greater amount of privacy. Built-in massage facility and adjustments to the seat. They offer five-star hospitality that serves a wide variety type of food. Passengers dishes are prepared by award-winning chefs. Boutique wines are found for non-Muslims.
Dining:
To help customers to find the right dish to suit their mood, they offer onboard fine dining expert.
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Entertainment:
Passengers can enjoy watching the latest movies, TV shows and listening to music with a 58cm personal LCD. E-BOX in-flight system and the best in interactive games. To ensure that the show goes uninterrupted Etihad airways provide Noisecanceling headsets. The seats are equipped with in-seat power sockets to recharge laptop or iPod.
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Dining:
Entertainment: Provide the largest economy class touch screens in the industry. Fun activities, stickers, pencils and games are found in family pack that allow child to have fun. Also child can choose from latest in cartoon, TV programs and games.
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High-comfort pillows to allow rest and relaxation. Overnight passenger get travel packs with comfort items.
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Duty free:
The latest cosmetics, jewelers, gifts, magazine and more and that are delivered directly to passenger seat onboard.
Door-to-door service:
Diamond First Class and Pearl Business Class guests receive door-to-door with a luxury limousine service, complete with a personal chauffeur. ()
Goal:
As Etihad Airways Company mention Our goal is to be a truly 21st century, global airline, challenging and changing the established conventions of airline hospitality.
Product attributes:
Describe the main product features, major benefits received by those using the product, current branding
strategies, etc. ()
Quality level: is built around the needs of customers is Etihads philosophy. They are committed to constant improvement, develop and maintain the highest possible quality of service .
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Features: Etihad apply unique vision of air travel personalized, hospitable and very luxurious. Customer is welcomed and respected as an individual guest of the airline; in whichever Zone (Diamond, Pearl or Coral) customer is seated. Style: They have taken the best of hospitality from Arabian home onto their flights.
Brand design:
It consist of Falcon and the words FROM ABU DHABI TO THE WORLD appears on the front under the Etihad sign in Arabic. There was two sails in the center have now been replaced with the flag of the UAE, possibly to strengthen Etihad as the official airline of the UAE.
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Brand positioning: Etihad use the top brand strategy decision which is product beliefs and values NATIONAL AIRLINE OF THE UAE. Brands sponsorship: Etihad airway is a manufacturers brand.
Etihad Stadium Melbourne Australia F1 Etihad Airways Abu Dhabi Grand Prix Golf Sport Australia Hall of Fame Hurling Quins Manchester City Football Club Grassroots Sponsorship () ()b)
Price:
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Etihad airways offering lower prices compared to competitors, and providing services similar or even better than competitors in order to gain more market share. Is a good-value based pricing: Etihad offers the right combination of quality and good services. Etihad airways Etihad airways utilizes the penetration pricing strategy to conduct its business, that is providing lower price comparing to its competitors, increasing market shares, and offering services better than competitors. The promotion offers economy class return fares to the four popular Indian destinations of Cochin, Kozhikode, Chennai and Trivandrum starting from AED 530 ( Etihad offers special fares,2009).European destinations include London, Paris, Frankfurt and Munich, with promotional economy class fares starting from AED 1,310, and promotional return fares to African destinations Johannesburg, Khartoum and Casablanca start from AED 1,210 ( Etihad offers special fares,2009). Asian destinations include Singapore (AED 1,410) and Beijing (AED 1,610). Return economy flights to New York are also available from AED 3,340 (Etihad offers special fares, 2009). Promotional fares to two popular island destinations in Thailand, Phuket and Koh Samui, are also on offer from AED 1,800 (Etihad offers special fares, 2009). In order to satisfy more and more consumers demand, the aircraft fleet of Etihad is keeping increasing from 2003 to 2009. This situation can attribute to the combination of high quality of services, advertisements to publicizing, and pricing strategies.
c. Place
Etihad Airways established in Abu Dhabi flies to more than 40 international destinations across the Middle East, Africa, Asia, Europe, Oceania and North America. It was started on 6th Nov, 2003 with its first flight from Abu Dhabi to Al Ain, but the official flight was scheduled from Abu Dhabi to Beirut in the same month. (). It has built very strong and competitive network agents to reach its targeted customers in all the destinations it covers. It provides a wide range of offers to its customers that include online services, seasonal discounts in booking tickets and providing customer care and support. It has made its service available 24/7 by enhancing the call center. It can expand further by initiating
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customer care in many other languages as well and innovating furthermore strategies of discounts to reach many more customers.
d. Promotion
Etihad conducts several promotional strategies to creating brand awareness, such as advertising, pricing, sponsorship, and brand loyalty. Advertising: Etihad Airways website is considered as the primary channel to connect the company and customers worldwide. This media way enables customers keep close relationship with Etihad by online booking, checking in flight status, ahead of seat selection, and some other useful information. Because of convenient and easy of website using, it is award as The Best Airline Website Award in 2010 (Etihad Airways, 2011). In 2010, Etihad issued a television advertising campaign, which called He likes, She like. It strengthens the brand awareness of their innovation of services and products, and it ensured the company would engage in its commitment all the time. In addition, Etihad considers some social website, like Facebook advertising, MySpace advertising, and so on. Sponsorship: Supporting global sports or social events in both domestically and international arrange can attract a large amount of potential customers, for some activities possess millions of fans. Etihad has also done some sponsoring: the main primary sponsor of sport Australia hall, GAA Ireland Hurling championship, Manchester football club, and so on. Sponsorship publicize the team spirit and hospitality values of company to a wide range of people; at the same time, lead Abu Dhabi get into the world, and let the world know Abu Dhabi (Etihad Factsheet, 2011).
Brand Loyalty: To keep the long term brand loyalty, Etihad established supporting strategies to enhance it. Through interacting with customers closely, customers create a feeling that they are one member of the brand. It pay attention to consumers need and want to perfect its services and products. It pays back to consumers by accumulating their travelling mile points. For example, consumers can gain free ticket/flight, upgrade from economy class to business class or from business class to first class, or get holiday package as long as their points reach certain levels. In this way,
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customers can gain extra values than they desired, and Etihad promote the customers satisfaction as well. Besides, it motives new consumers to join in the business and inspire original consumers to keep long term brand loyalty. By using price strategies, brand loyalty, and advertising, Etihad is expanding the number of staff associated with the growing amount of customers all the time.
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Internal Analysis Internal analysis is what effect the company negatively or positively from inside. So, if there are negative effect in a company, then in some cases you can control it, by building a good strategy and being updated about what effect the company negatively and therefore reduce it ,or positive Internal analysis can be divided into two parts as it shown below:
Strengths It what is the organizational strong points. Those make this organization the best or one of the best organizations Etihad Strengths Etihad airways have 57 wide and medium air busses which can help them to increase their flight to different destinations.
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To help Etihad airways in expand their destinations, they have a partnership with Virgin Blue and V Australia. Number of employees 3600 are serving Etihad airline customers, and 3000 cabin crew Since 2007 Etihad airlines is ranked in top ten airlines, and in 2009 it has been worlds leading airline. Etihad airline classify there service to many segmentation so they can target many level of customer, so they divide their services to three segment and each segment will one level of income such as Diamond Zone for first class, Pearl Zone for business, and Coral Zone for economy class. The price in al Etihad airways is acceptable for the middle classes consumer compared to other competitors. They believe that the quality of the services must be equally for the three segments, so they wean more than 30 awards received for service by the World Travel Awards (WTA). The opportunity the customer will benefit from Etihad airways so he/she can order a car or even an Etihad airway help you to search for hotels and were you must visit in the country you want to visit by offering for their customer the Etihad holiday. Every year increased their available seating capacity. Weaknesses Organizations negative points are that points which stand between the organization and its success. It is very important to know your weaknesses, because without knowing it, managers will not be able to determine organizations ability according to its strategies and available resources. Then, your organization cant survive (Robbins & Coulter, 2009). To avoid that, start asking yourself the following quotations: What is customer need in your company industry? Do you have a lack of professional employees? Have you increase costs without any back ground knowledge? What other company have and you don't have? And what you must do to achieve the competitive advantage?
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Etihad Weaknesses Customer services center is not very helpful to the consumer such as the customer must wait for long time in the answer machine, and some time they convert the call to the wrong person and so on. There are only 66 destinations of Etihad airways which are lower than other local competitor and GCC as well, such as Emirates has more than ninety destinations and Qatar airline more than eighty destinations. External Their outside influences that are divided it into tow part: Opportunities and Threats. Opportunities Considered as positive chances, organizations should take it from the external environment. That determines the organization competitive weapons (Robbins & Coulter, 2009). Etihad airways opportunities The growth economic and the highest technology in UAE help Etihad airways to grow as well. And because the UAE is very families in the other country this day especially the European country so it attracts many tourist and festivals like Dubai shopping Festival and the first race cars in Yas Marina Circuit in Abu Dhabi in 2010 which opens opportunities for Etihad to serve the segment of high level income. The good relation that UAE has built with the Arab world helps Etihad airways and others in the same industry to visit UAE so it encourages Etihad airways to open offices for customer support in places such as Lebanon, Cairo, and Algeria.
Threats Threats are negative external points that can effect in companys success (Robbins & Coulter, 2009).
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One of the most threats to Etihad airways are the competitor such as Emirates airline and Qatar Airways. Second the cheaper airline like Fly Dubai and al Arabia effect the Etihad for low level income customer segment. Natural environment condition could also be a threat to any airline. New branches in Europe will compete with the local airlines and this may cause threat to Etihad airways. The fuel cost may increases so the ticket price will increase as well, and that may hinder the customer preferences of choosing Etihad airways.
which is a city being built by ADFEC (Abu Dhabi Future Energy Company). Etihad Airways adopts a serious of activities for declining the carbon footprint coming from aviation. Moreover, Etihad is going to corporate with Masdar to strengthen its management of aeronautic waste and planning of saving energy. It puts the environmental strategy into actions and tries to make efficiently use of energy by following behaviors. First, it treats crew as a bridge to the bonanza of the environmental initiatives; second, Voluntary Green Office Champions , which is a group organized by Etihad airways, advance the environmental major points that penetrate its professions.; in addition, Etihad trains staff to improve their environmental awareness motivate them with innovation of development in environmental sustainability to reduce carbon footprint in their work; furthermore, it works in partnership with some business departments of Masdar to implement their sustainability strategy. Etihad Airways not conduct only abiding on existing environment regulations in domestic and international, but it also takes part in the International Antarctic Expedition. Ali Al Shami and Taryam Al Subaihi, who are employees of Etihad, join in the Antarctic adventure as ambassadors of sustainability in airline with sustainable pathfinder, Robert Swan, and other polar explorers. They will spread their experience and knowledge they obtained from this expedition to complement deficiencies in sustainability. These behaviors of respecting environment that Etihad has taken conduce to continue and make sustainability strategy workable. (Etihad Airways, etihadguest.com) In addition, Etihad also does charity donations through donating members miles to humanitarian and environment charities worldwide. So far, over 0.6million miles have been donated by the members of Etihad Guest Program. This plan assisted people who suffer from AIDS, or who are orphans in Thailand, and children who need a heart operation in Sri Lanka. Besides, it also did some jobs domestic, like Abu Dhabi Special Care Center attempts to encourage children who need support physiologically or psychologically. (Etihad airways Facts and Figures, 2009)
III.Conclusion
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In summary, Etihad airways have established itself as leading airlines in a very short duration of time. By using the right marketing techniques, it has been able to create high customer value and profits. The principles it has used in providing service to its customers are admirable. The treats and challenges it undertakes are commendable. Another important factor that we learned through this project was that marketing strategy is highly important for any organization to be successful. Without considering the four important factors of marketing mix i.e. product, price, place and promotion, the organization cannot earn profit. In addition to this, it is very essential to determine the SWOT Analysis of the organization, to know the opportunities and treats of the organization so that it can take the required initiatives to overcome treats and benefit from the opportunities. Also, maintaining the brand name is equally important as once the name is established maintaining the brand loyalty is compulsory, providing the customers with the product and services as promised. Finally, along with following the marketing concept, it is essential to follow the societal concept as well i.e. considering the long term interest of the customers, companys requirements, and long run interest of the society. Hence, after analyzing the marketing strategy of Etihad airways we were able to figure out that Etihad has met all the above requirements strongly, and thus have a very profitable and successful organizational journey in the long run.
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