Week 3 Case Assignment
Boeing: Dreamliner 787
Discuss the nature of the market structure and demand for the Dreamliner. What are the implications for Boeing and its customers? The market structure for the Dreamliner is that of an oligopolistic nature which means there are few aircraft manufactures who sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft. The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, “It’s not just an evolutionary step…it borders on revolutionary.” This statement is supported by many industry insiders. (Kotler & Armstrong, 2010, p188) With such support, the emotions of the airline companies jumped at the chance to place an order even with the understanding that the estimated time for delivery was at least 4 years and there was little research to support some of the added luxury amenities. What examples of the major types of buying situations do you see in the case? Discuss the implications of each in terms of marketing strategy? A new-task purchase is seen with the Dreamliner due to the fact that it is a new product being sold by Boeing. The buying team is comprised of numerous members and the team must decide on specifications regarding the product. The marketer (Boeing) “tries to reach as many key buying influences as possible but also provides help and information.” (Kotler & Armstrong, 2010, p173) The amenities of the Dreamliner will assist the buying team in making a decision whether or not the Dreamliner would be a good investment for the company and if so, how many to order. A straight rebuy is also seen in this case. Boeing listed the airliner at a price of $162 million with few customizable options for its buyers. (i.e. seating arrangements). Many aircraft buyers may have already been customers of Boeing and are familiar with their business. A straight rebuy is defined by Kotler and Armstrong as the buyer reorders something without any modifications. Once the buyer purchases the aircraft the straight rebuy buying situation will result in a quicker sale with fewer individuals making a decision on options and product specifications.
List the specific features of the Dreamliner. What customer benefits result from each? PASSENGER BENEFITS:
60% quieter than other planes in its class – It is always nice to sleep on a plane however, when seated near the engine it is difficult to rest due to the noise. Many corporate travelers will enjoy this benefit with the late and early morning travel plans. More legroom – Taller travelers usually resort to isle seat to better stretch their legs. With the added legroom there will no longer be a need to specifically sit in the isle and more options that will equal the comfort of isle seats will come available. Lighting that automatically adjusts to time zone shifts – Changing time zones can be difficult for anyone Circadian rhythms, which are the internal clock we all have which tells us when we it is time for bed and when it is time to rise. These “clocks” are not easily adjusted when changing time zones. The Dreamliner will posse lighting that simulates “sunrise and twilight which will assist its passengers adjust to the change in time zones.” (Micke, 2010) Higher cabin pressure and humidity – reducing common flying symptoms such as headaches, dry mouth, and fatigue. All of these symptoms are not what most passengers look forward to; knowing the Dreamliner decreases these symptoms will make it a preferred aircraft for many passengers. Large overhead...