Unit 8 Case Study
MT330-01 International Marketing
November 14, 2011
Airline manufacturers must compete with one another to be successful, and have the most birds in the sky. Boeing and Airbus are the two largest manufacturers for commercial aircraft, especially those used for long flights. Iberia Airlines wanted to purchase up to 12 brand new jumbo jets from one of these manufacturers. Enrique Dupuy, Iberia’s CFO, set a price that he wanted the company to pay for the aircraft and then started a bidding war between the two super jumbo jet manufacturers.
Negotiation between two major companies like Airbus and Boeing can make a marketing strategy very strong or the complete opposite, it can cause a strategy to crumble to pieces in an instant. Airbus and Boeing both have dedicated sales representatives, Bight of Boeing and Leahy to their jobs very serious and developed a marketing plan like none other. These two gentlemen understood one important thing when it comes to marketing, plans must be able to adapt to change at any given moment.
Prior to the beginning of the negotiation Airbus had an advantage of Boeing. Iberia Airline were currently using the manufacturers largest plane (Michaels, 2003). Airbus had already established a solid reputation with the airline company. Dupuy was familiar with Airbus’s resale guarantee, which was hard to beat by any other company (Michaels, 2003). Although Airbus had previous history with the airline company, Dupuy wanted to look at other manufacturers to get the best competitive price.
Bright was personally contacted by Iberia Airlines to begin a negotiation process in hopes that he would be able to meet the predetermined price set by Dupuy (Michaels, 2003). Bright’s marketing strategy was geared to the fact that these planes could save more money in the long run while earning more revenue. He not only explained to Dupuy Boeing 777 could hold 24...