Mission Statement

"Singapore Airlines is a global company

dedicated to providing air transportation
services of the highest quality and to
maximising returns for the benefit of its
shareholders and employees.
'A Great Way to Fly'

History
Singapore Airlines began with the

incorporation of Malayan Airways

Limited (MAL) on 1 May 1947.
With the formation of Federation of

Malaysia in 1963, the airline's name was

changed to Malaysian Airways.
In 1966, the airline's name was changed

toMalaysia-Singapore(MSA).

History
In 1972, MSA split into Singapore

Airlines and Malaysian Airlines System.

Singapore Girl a consistent

visualadvertising slogan since 1972,

remains a prominent element of
SIA'smarketing.

"First to Fly the A380 Experience the Difference

in 2006
Removed 17 aircrafts from its operating fleet

between April 2009 and March 2010, as part of a

cost-saving initiative.
Scoot - Singapore-basedlow-cost long-haul

airline. It operates flights on medium and longhaul routes.

Vistara- Joint venture between India'sTata Sons

andSingapore Airlines.

'World's Best Cabin Crew Service' by the

Business Traveler Asia-Pacific Awards for 17

consecutive years.
In 2003 started the two longest nonstop flights in

aviation history, Singapore Newark and

Singapore Los Angeles.
Worlds Best Airline award from Conde Nast

Traveler.
Skytraxs Airline of the Year award three

times over the past decade.

Strategies
Compete on Service
Brand and promote the cabin crew
Innovation
Despite quality, SIA is cost-effective.
ASK were just 4.58 cents
Combined differentiation and cost leadership

Dual Strategy
Entail contradictory investments and

organizational processes
Demand for value for money has shot up
Grab middle and low end of the market
Competition from rivals

Funded growth through retained earnings

Self-reinforcing system that is difficult to

imitate

4 Paradoxes
Providing service excellence cost effectively
Innovating in both a centralized and a

decentralized manner
Being a technology leader and a follower
Achieving standardization and personalization
in its processes

Factors influencing SIAs marketing

strategy
Factors not visible to customers
Training to employees
Amount spent on Innovation
Aircrafts spending less time in hangers
Very less Labor cost
Cost cutting in back office

Factors visible to customers

Customer Service
Innovation
Value for money
Personalized Service
Fleets are young

SWOT Analysis
Strength

Cost Effective operators

Fleets are young
Employee training
Specialized customer
offering

Weakness
Depends on international
traffic
Lags behind back office
technology
Limited growth in market
share

Opportunity

Threat

Expand routes across

Middle East,India,China
Can leverage the hub in
Singapore
Partnering with other
carriers

Low salary to employees

Fuel cost
Competitors

Innovation
First to bring on demand entertainment

systems
It is centralized and decentralized
Specialized meals
Product innovation department
Non stop all business class service
Induction of Airbus A380

Cabin crew stopped food ordering through

entertainment system

Training Quality
Recruits first class university graduates
Training period 4 months. Industry avg 2 months
Spends $70 million a year to retrain employees
Deportment, Etiquette, Cultural sensitivity
Cabin crew is involved in decision making
Trained on several languages

Only Standardization not able

to deliver the WOW factor
Personalization of the service.

Ex: remembering birthday and preferences of wine and

magazine.
Most opportunities arise from unexpressed needs.
Ex- some customer might look unwell, someone laptops
battery
might have drained out etc.
Ordering meal thats not in menu as in vegetarian meal
A person wants to discuss about wine
Trade Of

To go this extra mile it takes effort and time thus extra

crew members are carried and extra 5% is added to costs

Strategic Investment
Persons ability to taste food at 30,000 feet

declines by 40%.
$700,000 invested to build a facility that enables a

person to taste to food under pressurized flight condition.

SIA spends more than its rivals

Buying new aircraft
SIA replaces its fleet more frequently than do

competitors.

Depreciating Aircraft
It depreciates aircraft over 15 years compared

with the industry standard of 25 years.

Labor cost on flight

Innovation
Training

Price effectiveness
New planes are more fuel efficient and less

prone to repairs
Low customer attrition.
Waste reduction
Offers lower pay by Singapore standards
Outsourcing
No frills headquarters and offices
Responsibility for cost reduction is
decentralized

Shostacks Molecular
Model
Flight
schedules

Aircraft

Service
frequency Transport
Pre &
PostFlight

Intangible
elements

In-flight
service

F&B

Price
Distributio
n Positioning
Marketing

Tangible
elements

Core products and supplementary

services
The core benefits SIA offers are
A very good experience of air transport.
Cost efficient and excellent service.
Supplementary services that help to
differentiate core products and create
competitive advantage are
Inflight food, entertainment and stewards
services.
Flight schedule, timely arrivals and departures.

Porters five forces

Porters five forces

Rivalry is taken care of by following the dual

strategy.
New entrants are taken care of by innovating.
Buyers bargain power is low because it is
already providing high quality for low prices.
Suppliers power is low as SIA is able to
negotiate well with its suppliers to purchase at
low price.
There is not much threat because of substitutes
as there are no equaling substitutes to flights.

7Ps of Marketing strategies

Product
Price
PromotionTraditional 4P marketing

approach
Place
People
Physical evidence, and
Process

3Ps of service marketing strategies

People: The SIAs Stewards Singapore Girl is

their internationally-recognisable icon

providing the high standards of care and
service that customers have come to expect
of them.
Physical evidence: Aircraft, Food and
Beverages.
Process: Service enhancing processes like
booking the cook, all behind the scene work
done to achieve excellence.

CUSTOMER SATISFACTION -RESPONSE FROM SINGAPORE AIRLINE:

How do you keep the customer Happy?
Customer satisfaction surveys are developed to provide an understanding of customers expectations and
satisfaction.

Segmentation
Dividing heterogeneous market into a number of smaller,
homogeneous submarket
Geographic: Nations and Regions
Demographic: Age and Income
Psychographic:
Socio economic and life style
Behavioral: Usage rate and Attitude

1) Age group and their response(agree /disagree)

Ho:There is no significant difference between age and their response for travel
in SIAs (agree and disagree)
Ha: There is significant difference between age and their response for travel
in SIAs (agree and disagree).

MEAN

S.D

AGE AND
RESPONSE(AGR
EE
OR DISAGREE)
1.566

1.454

95%CONFIDENC
E INTERVAL OF
STANDARD
THE
ERROR
DIFFERENCE
MEAN
UPPE
LOWER
R

.2655

1.023

2.109

D.F

SIG.LEL

5.899

29

.000

2)

SIAS FREQUENT FLYER PROGRAMM

Frequency

Percent

Valid Percent

Cumulative
Percent

21

70.0

70.0

70.0

30.0

30.0

10
%

100.0

16.7%

30

100.0

100.0
73.3%

3)Age and SIAs frequent flyer program

CLASS USUALLY USE TO TRAVEL

Frequenc
y

Percent

First Class

10.0

Business Class

6.7

Economy Class

25

83.3

Total

30

100.0

4)

OCCUPATION AND HOW MANY TIMES TRAVELD

Frequency

Percent

Professionals

15

50.0

Executives

10.0

Students

12

40.0

Total

30

100.0

5) SAFETY AND COMFORTS - AIRFARE COSTS (CROSS

TABULATION)

AIRFARE COSTS

SAFETY AND SECURITY

Total

FAIR

GOOD

VERYGOOD

EXECELLENT

Total

GOOD

VERY GOOD

EXCELLENT

19

13

30

6)Out of 30 response 28 o were responded that they are preferred to travel with SIAs compared to others airlines

REASON FOR TRAVEL IN SIAs AND HOW MANY TIMES TRAVEL IN AIRLINE (CROSSTABULATION)

REASON FOR TRAVEL IN SIAs

HOW MANY TIMES TRAVEL IN

AIRLINE

Total

1-2
Times

3-5
Times

6-8
Times

>8
Times

cost,choice of destination,inflight entertainment,comforts,ease booking,sfe and

security,cabin crew services,reputaion

12

inflight entertainment,ease booking,choice of destination,meals on

board,reputation,cabin crew service,promotion offers,others

10

cabin crew services,meals on bords,comforts,easy booking,meals on bord,choice of

destination,cost

Total

20

30