Airline Research

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Question 1

Upon the case study that provided by CNN and research from own, we can understand that within a market it shows that all consumers have different tastes and different needs and requirements. As a result, particular markets can usually be further divided into discrete segments. Meanwhile, target segments it can be divided in three segments which are demographics segmentation, geographically segmentation and psychologically segmentation. In conjunction, that products and services can be developed for each part of the market base on each segment to closely aim at satisfying each consumer group.

Somehow according to the case study provided, target segments for the SIA’s new budget carrier, Scoot airline uses two forms which are psychographic segmentation and demographic segmentation to divide up the market for its services. In demographic segmentation, Scoot airline consists dividing into the group of age, gender, occupation and income of their consumers. On the other hand, psychographic segment, Scoot airline aslo identifying their business by social class, lifestyles, opinions, interests, behavior and attitudes of their consumers. Somehow, segmentation have given SCOOT airline a better understanding of its consumers, the services they require, where and when they want those services and how they would prefer to pay for them. Which upon the information of Scoot airline provided at their web page “About Scoot” have been explain their business as were “we’re an airline for the young, the young-at-heart and the value seeking. People who remember that travel is all about discovering, connecting, experiencing, and enjoying.” About scoot. (2011, November 1)

Scoot airline segments its market for demographic and psychographic is due to the current young consumers which age group around 18 years old to young adult 30 years old, lifestyle and interest are always wanted and craving to enjoy their life by using their minimum spent to explore, experience and discover as much they can. Mainly they are leisure travelers and concern on price conscious. Accordingly, all these are consumers need and the proportion of consumers who have those needs. In conjunction, Scoot airline take this opportunity to develop an offer for consumers a new non-stop routes from Malaysia with a low fares long-haul travel to Australia, Japan, China and ultimately the world for the first year. About scoot. (2011, November 1) Target segmentation therefore enables Scoot airline to maximize the efficiency of its marketing efforts by moving the company to use a different strategy for each market segment. Question 2

Base on research, as a market develops, currently consumers have been become more experienced and discerning and look for more benefits from the products they choose. However, Scoot airline define their big idea for product is “Save on the frills, spend on the thrills”. Fly with Scoot is pay whatever you want which mean you aren’t subsidizing the choices of others. On the other hands, whichever everything you save, you can spend on your holiday. Meanwhile, Scoot can get the lowest cost for long-haul air flight. The save frills of SCOOT airline strategy will allow them to keep average economy fares for 40% lower than legacy carriers, which in the Asia offering sees the addition for several frills including complimentary food, drinks and check-in luggage. By the way, Scoot may let you customize the experience which suits your needs too. Consumer can buy just a seat, or add extras, from get a tasty meal to a great entertainment, get an extra large seats extra heavy baggage and bulky equipments which all of these choices is on your own. Somehow, Scoot wanted to make it easier and convenient and they have been bundled all those option together with a funky-named as “Fly, Flybag, Flybageat, ScootBiz”. Which just one clicks and enjoy a discount, compared to selecting the extras individually. Fly with Scoot can get a seat which...
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