School: Foreign Trade University, Hanoi
Market segmentation strategy is one of the most important business strategies that will determine the success or failure of a corporation or an organization. It has been proven through reality business. There are many companies reaping huge success with reasonable and proper market segmentation. On the contrary, a great deal of companies failed as they have made improper market segmentation. Take airlines Silverjet for example, we will understand deeply how important of market segmentation with the success or failure of a company. Before discuss and explore the success and failure of Silverjet, we should know much more information about airline market segmentation. The typical segmentation bases that used by airlines is geographic and psychographic segmentation. And most major carriers flying domestic of international routes have three basic types of segment. They are economy, business and first class passengers. Each class has its price and quality of services in the order respectively: Economy class, Business class and First class. Back to Silverjet, here is some information about it. Silverjet Aviation Limited was established in 2004 by Lawrence Hunt – a successful businessman. The airline secured two Boeing 767-200 aircraft in August 2006 and began its all-business class service from London to New York in January 2007. It was huge achievement for Mr. Hunt because Silverjet had developed rapidly and strongly. “We launched a whole new business model and level of service. Our target was 80% load factor in ninth months - we got there in seven. We did not receive one complaint” said Mr. Hunt. Silverjet had been chosen as the best airline of the year by the Sunday Times. It can be seen that, Silverjet has gained huge success at that time. So, why did Silverjet success like that? This company attended on business class, and its main route was from London Luton to New York’s Newark...