Qatar Airways Marketing Strategy

Qatar Airways commercialiseing StrategyAbstractThe breedline intentness has been cognise to be volatile and warring. It is volatile in the sense that each negative red-hots either from the operate such as air mishap, economic downturn, perceived threat of terrorism, the potential discoverbreak of the birdflu virus or the occurrenceors of resultion like rise in prices of crude oil impacts negatively on the strategical carriage of each of the players in the sedulousness be it grocery leader, fol showtimeer or challenger.The case of Gulf States (Countries) such as Bahrain, Iran, Qatar, UAE, Oman, Kuwait, Saudi Arabia to mention just a few calls for closer attention. This is because the so Gulf rural argonas ar have the resources and capabilities to postulate in all the quaternity fronts of grocery storeing mix which is oft referred as the 4Ps of People, Price, authority, Promotion. In rule to wean their economies away from declining oil reserves some center due eastern countries watch substantial investments into their aviation sector. The bulk of these investments concentrates on the United Arab Emirates and Qatar and comprises fleet involutions stoked by massive airport extensions and development projects. The million dollar question is how Qatar airways hindquarters turn its fortune from being a commercialize follower in the Gulf flight path industry to a leader. In this academic stool alike, we would use the pursual framework for evaluating and writingCustomers Who ar the organizations customers?Products/services What atomic number 18 the organizations major products or services?Location/markets Where does the organization compete? applied science Is technology a primary concern of the organization?Concern for survival, harvest-home and favorableness Is the organization committed to economic objectives?Philosophy What are the elementary beliefs, sets, aspirations, and philosophical priorities of the firm?Self-concept What is the organizations distinctive competence or major competitive advantage?1.0 IntroductionThe air slip awayage industry has grown to be hotshot of be adept of the largest industries in half century of its existence. Its origin could be deduced from the end of realness state of war l but it was non until conception War II that saw peace restored worldwide that accounted for the burgeoning of the seam. Statistics have it that the industry a lot airlift much than 1.5 billion industry worldwide and generates more(prenominal) than $ 300 billion in tax and employ 1.7 million batch worldwide (Hanlon Pg 1,2006). Good to note is the fact that the post World War II air passage industry are dominated by state owned air duct businesss know as Flag mail carriers and the g all overnment which owned them often used them as instruments to further their mer stinkpottilist interests or to gain their countries status, power and prestige. skyway business in the Gulf States is of ten associated with government (Hanlon Pg 2, 2006). Government passion to protect flag carriers often lead to artificial market, in which the profitability of the airlines were determined more by the competitors that are allowed to fly the lane alternatively the forces of quality and pricing. respiratory tracts suited in the Middle East currently confine 9% of long haul content worldwide. They volition be responsible for(p) for about 25% of all global long haul aircraft deliveries over the next decade (Flagnagan, 2006). Dubai found emirates airlines accounts for the largest buyer, which approximately 70% of all newborn long-haul aircraft orders in the Middle East. Some airline commentators predict that dress 2012, the airline would double its fleet (Flagnagan, 2006). After Emirates come Qatar airlines. The airline has placed an order of 140 wide body aircraft. The expansion plans of the gulf airline operators are shown in Fig 1 withinQatar airways just like other airlines in the Gulf States is part of the government frame to diversify its revenue base, economies, commerce, tourism and global transport importance. The airline has a rich commission pedagogy which is Excellence in everything we do. According to a survey carried out by Pearce and David (1987) to analyze the mission contents of airline companies, the mission, it showed that Qatars mission statement is one of the better(p) in the world. Amongst 9 points, it has 6 points.Fleet expansion plans of Middle Eastern carriers (as March 2008). Source Journal of Transport geographics 18 (2008) 388-3943.0 Current Marketing Mix of Qatar Airways3.1.1 Product Strategy bleak ProductsExisting ProductsServices is defined as involving one party offering something that is fundamentally intangible and where the interaction does not result in ownership of anything (Kotler, 2008). Applying Ansoff product grid matrix, it can be said that Qatar airlines is still in market acuteness. This is because the air line as was shown in the introductory section of the work, has projected the deed of aircraft it wish to buy before 2012. The attributes of a gild in yield stage of union life cycle is expansionary qualities.Existing MarketMarketPenetrationProduct increment spic-and-span MarketMarketDevelopmentDiversificationansoffs product / market matrixThe attributes of market penetration schema in which Qatar airways are using includeMaintain or ontogenesis the market share of current products this can be achieved by a combination of competitive pricing strategies, advertising, sales progress and perhaps more resources dedicated to personal selling As part of this growth plan, Qatar Airways will extend its route network to 50 destinations by the end of 2003. It has latterly added Manchester and Rome to its increasing route network. It will soon be adding Shanghai, capital of South Korea and Tripoli to its route network. (Air broad(prenominal)ways Magazine, 2005, p. 1).Secure dominance o f growth markets. Qatar airlines have been known to dominate the ever meddlesome African- Middle east air routes. The federation always has some flights available from any part of Africa to the Gulf States. The topology of the area has boost the airline to operate in product penetration strategy of Ansoff product grid. Its sparsely populated area has encouraged fiting by air for intra- roleal transport. Furthermore, a full(prenominal) per capita income that is still increasing quickly, offers a base for a strong aviation industry. But there are socio-economic constraints, limiting both domestic leisure and business travel potential. ontogeny usage by existing customers for example by introducing loyalty schemes .A market penetration marketing strategy is very much about business as usual. The business is focusing on markets and products it knows well. It is likely to have dandy information on competitors and on customer needs. It is unlikely, therefore, that this strategy w ill implore much investment in new market research. There is no evidence that Qatar airways is investing on market research because they are not expanding into unknown routes such as Kula-lumpur Sydney route.3.1.2 Pricing Strategy Going-rate-pricing strategyin short Qatar airline practice what is called Going-rate-pricing strategy. The market leader in the middle- east airline industry remains Emirates. Qatar charges its fare based on the price of Emirates which is close to higher. This is because being the market follower, Qatar does not need to disturb the established market dynamism because it might not be able to compete on the same level with Emirates.Comparing the price of Qatar and Emirates, on the same route of Kuala-lumpur (Malaysia) Johannesburg ( South Africa)Price of Qatar on 21st Nov returning on twenty-third Dec from Kuala-Lumpur to JohannesburgPrice of Qatar on 21st Nov returning on twenty-third Dec from Kuala-Lumpur to Johannesburg3.1.3 Promotion StrategyQatar ai rlines are not practicing product specialisation but it is practicing promotion differentiation. According to its honcho Executive Officer Akbar Al Baker he said that Qatar By offering a word form of entertainment options, we are able to differentiate our passenger service by live entertainment programming while also setting new standards of comfort to ensure we are the airline of choice (Rockwell Collins, 2005, p. 1). Some of their promotion strategies are as listed below and experient by its passengers are asBiggest and best business variant in the Middle East synergistic Audio, Video on Demand Entertainment SystemLargest personal TV screens in the Middle EastElectronic seat controlsIn-seat back manipulateFirst Middle East airline in First menage with flat bedsQatar has engaged the services of Global media industries to help spread the skinny news. Such internal media includeTVCorporate VideosBBC Campaign to position it as a premium carrierCNN testimonials from airline s tave flip-flop News reports as a sponsor of the weather serviceSponsors a travel show through Al-JazeeraQatar is a major sponsor of high profile sporting activities such as World Tourism Day, WorldTravel and Tourism Council Summit, World Economic Forum, Leading International sports events. Qatar airlines was the decreed sponsor of 15th Asian Games, Doha 2006. The company has come up with a new product called Flying Oryx Newsletter that it distributes to travel agents. The newsletter is also available through its entanglementsites. More links could be established to the newsletter through the Internet. The airlines also give away products to passengers that promote the logo of the Burgundy Oryx and Taking you personally, such as watches, com adornermice and hand towels.3.1.3 Place StrategyThis places a little impact on the business strategy of Qatar. Qatar airways like any other airways have developed a system of getting their ticket. Unlike the radiation diagram businesses, whose distribution product line goes from the manufacturer wholesaler-retailer-consumer. The normal business cycle Qatar airline and other airways are from the airline operators to consumers when online date is through with(p) or through traveler agent.Airline operatorAirline operatorManufacturerWholesalerConsumerTravelling erantRetailerConsumerConsumer handed-down Supply channel Online booking channel intermediary booking channel4.0 MARKET ANALYSIS4.1 Qatar current marketQatar airways is one of the leading airline industry in the gulf states. There is no hiding from the fact that Qatar airways is building on the booming market of Dubai to feed the ever busy Dubai route. Qatar currently targets those customers who considers Emirates too expensive. Those that want a little bit high quality and class at an affordable price. Qatar market can be divided into two as followsGeographic SegmentationQatar Airways is currently operational in most of the regions of the world.They are rangely hoping to expand their routes to include the southeastern pacific routes of Australia and its neighbouring countries. Qatar Airways is a dynamic, high service carrier, which utilises the geographic location of its Middle Eastern hub to link 72 international cities. From the UK the airline operates regular services from London Heathrow, London Gatwick and Manchester to Doha. Onward connections are available to cities including Dhaka, Ahmedabad (coming soon), Chennai, Delhi, Hyderabad, Cochin, Mumbai, Nagpur (coming soon), Trivandrum, Mal, Kathmandu, Islamabad, Karachi, Lahore, Peshawar, Colombo, Denpasar, Jakarta, Kuala Lumpur, Myanmar, Yangon, Cebu, Manila, capital of Singapore, Bangkok, Ho chi Minh City, Bahrain, Mashad, Tehran, Amman, Kuwait City, Beirut, Muscat, Dammam/Dhahran, Jeddah, Riyadh, Damascus, Abu Dhabi, Dubai, and Sanaa,Bangkok,Hong Kong, Singapore, Kuala Lumpur, Manila, Cebu, Nairobi, Johannesburg and the Seychelles. Qatar Airways entering the US market with flight s to New York and Washington, DC select from the airlines hub in Doha, capital of the State of QatarDemographic SegmentationBelow is the demographic basis for the market segmentation for Qatar airwaysDemographicVariablesBreakdownSex masculine FemaleAgeUnder 12 13-25 26-40 41-55 55 +Income (monthly)USD 300.00 and over trustMuslims (Halal status) Non-Muslims (Non-Halal status)EducationDesigned for5.0 STRATEGIC ANALYSIS (SWOT analysis)SWOT analysis helps to look the internal and external environmental factors affecting Qatar Airways and hence enable us to make strategic decisions (Aaker, 2005). The recommended strategies that would be pick out in this paper would be based on the on the SWOT analysis of the company.External depth psychologyStrategic decisionsWhere to compete?How to compete?IdentificationTrends/Future eventsThreats/OpportunitiesStrategic uncertaintiesHow to compete?AnalysisInformation-Need areasScenario AnalysisInternal AnalysisSource Adapted and limited from Aaker, D . A (1998), Strategic Market Management, 5th Edition, John Wiley Sons, Inc., USA, p 405.1 INTERNAL ANALYSISStrengthWeaknessBrand RecognitionThe airline has been able to build a strong brand that was described by Kelly Kaur, Marketing Director, as getting to know the audience and using conference to build loyalty, stimulate desire, create confidence and build awareness.ConsistencyThe airline has been noted for offering consistence services which was one of the criteria that enabled it to get a FIVE STAR RATING.FIVE STAR RATINGQatar Airways is just one of the few airlines in the world ranked Five Star by Skytrax, the independent aviation industry monitoring agency. The same organization Skytrax also named Qatar Airways cabin crew as Best in the Middle East for the third year running and fifth best in the world, following a survey of more than 12 million passengers worldwide. (World Economic Forum, n.d., p. 1).Qatar Airways are the proud winners of the TTG Travel Awards 2009 Airline of the year. In recognition of the world class service and their commitment to offer only the best to over 80 destinations worldwideNumerous FlightsThe airline currently operates a fleet of 42 all-Airbus aircraft, which is expected to triple in size to 110 aircraft by 2015.Qatar Airways deep made an agreement to buy up to 60 of the new genesis Airbus A350s. The airline also plans to acquire 20 Boeing 777s,with a total value for both orders set to be worth US$ 15.2 billionAgeMany still believe that Qatar cannot maintain their high standard for a very long time because they are not too experienced in the industry.ArabizationMany people still believe that the airline is Arab based because of their Logo. Qatar Airways logo uses an animal (Arabian oryx) that may be familiar to people in the Arabian Gulf, but not to people outside the region.National CarrierHistory has shown that most national does not last and they are often abused by the government. People would love to invest so tha t they can control or have shares in the business but thats not the case here.5.2 EXTERNAL ANALYSISOPPORTUNITIESTHREATSBooming tourism industryThe present surge in tourism in the gulf states is plus for the company to expand its business capacity.ImageThe Airlines has gained some reputation in the region and in Europe and its other sitesStrategic alliancesThe airline has the reputation of forming strategic alliances with some airline operators in the pacific rim. This can be done either via bilateral with the respective government.TerrorismThe incident of 9/11 is a wheel in the spanner of most airline industry. It has greatly reduced the ability of airline operators to attract many frequent fliers.New EntrantsThere is possibility of new entrants to the market especially Etihad. Etihad has the financial capacity to compete on the same level with QatarVolatilityThe industry itself is known to exhibit high volatility. This may be in the form of arouse price, technology change or epide mic and natural disasters.6.0 PROJECT passport STRATEGIES6.1. Market penetration via new productsLow speak toQatar airways have the leverage to engage in more competitive prices that what they are offering presently. They should dramatise a leave from what Qantas did. Qantas came up with a low cost carrier called JETSTAR. The low cost strategy can compete in the low cost flight category of the airline industry while the put up company keeps their normal standard. adherencesQatar airways have the brand image to form strategic alliances with many similar airlines where they can get the benefits of economics of scale. This might come in the form choosing one airline company in the innocent to form a loop. They might borrow a look from what Singapore airlines deed as shown below.SingaporeAirlinesAir New ZealandStar AllianceDinners ClubAvisSingapore Airlines alliance network strategic alliance, follower ( Kotler Pg 812, 2008)6.2 maximise sales revenueReduction of booking agentsCommi ssions and other incentives to sales staff add to the operational cost of the company. These costs either passed on to the customers or absorbed by the organization lowers the margins of the company. The company should come up with a structure of appointing GSA (General Sales Agent) in major cities and towns. They might even pass it to the post office to sale for them since they post office has their fixed cost already running.Web Friendly SiteThe company should as a matter of urgency design a friendly user web site. Their current web site is not user friendly. They should borrow a cue at Airasia website. Airasia website is fast, user friendly and updates every minutes. This has greatly encouraged customers to use the web more frequently than physical office distance thereby limiting people or place contacts to the barest minimum.7.0 ConclusionIn its relatively few years of operation has shown that they can ranked amongst the best in service delivery. They have grown from a small c ompany to a major player in the airline industry. They have put in place sound management principle and good chief executive Akbar Al Baker believed his airline was leaking significant amounts of revenue. A serial publication of short diagnostic exercises confirmed his hunches needs continuous improvement.The company has adopted a relatively moderate marketing mix by targeting its customers, side the company World Class Young, but growing fast previous Thinking, open-minded On-time, Clean image Friendly/helpful/warm/ genial airline. The People is good, Price affordable, Place great and Promotion best.