Company: Snecma (FRA).
Aerospace engines manufacturer.
Implementation market: United States of America
Table of contents
Table of contents3
1)Industry analysis (1000-1200 words)4
a.Definition of the industry4
b.Market trends in the last three years5
c.Economic structure (pure competition, oligopoly, monopoly)8 d.Basic business models (differentiation strategies, cost-leadership strategies, and focus strategies)9 2)Description of the company (200-300 words)11
a.Snecma and its main products11
b.Main geographical markets12
3)Marketing mix in U.S.A (2000 words)13
a.Main competitors (very brief)13
b.Analysis of the marketing strategy in U.S.A (Segmentation, Targeting, Positioning)15 c.Analysis of the marketing mix20
d.Main environmental and market reasons behind the strategy & conclusions.23 Methodology26
Main sources (primary and secondary data)26
Complete list of references (not counted in the words)28
Industry analysis (1000-1200 words)
1 Definition of the industry
The aerospace industry is very specific in many ways. It includes both aeronautics and astronautics, which means that the possible applications are very variables: helicopters, private jets, airliners, military aircrafts, rockets, satellites, etc. We will see later that Snecma is implied in every last of these examples. Each of these fields implies very specific knowledge, researches, infrastructures, partnerships and so on. Aerospace and military applications are not concerned by the marketing as we learn it in a business school; it is much more about governments’ trades and secrets, counterparts, etc. But the other applications cited above are definitely concerned by the marketing. This is why this paper will be focused on the civil aeronautics (and on the engines manufacturing as it is Snecma’s market).
Another key factor to remember is that companies can have to wait several years between their orders to aircraft (A/C) and engines manufacturers, and the moment they will receive the order. Order books are often counting thousands of products, meaning several years of production. Moreover, when new A/C or new engines programs are launched, the announcement is made 4 or 5 years before the first delivery, sometimes more. This is crucial information, because it means that customers make firm orders for products which do not exist yet, only on plans, and thus, they place orders based on the experience of their manufacturers, not on the results of the products. It will be seen hereinafter what is the role of marketing, and what tools had to be created in order to overcome the lack of tangibility of the goods to sell. To conclude this industry presentation, it should be reminded that there are three major countries involved in the aerospace/aeronautics: U.S, France and Great Britain. China is trying to become the fourth one.
2 Market trends in the last three years
In general, the aeronautics industry is quite cyclical and bound to the economics’ cycles. This is why all the companies of this sector suffered important losses since the crisis of 2008. In 2009, the airlines traffic faced a 3% drop compared to the previous year[i]. Fearing or predicting that things could go worse, aircraft orders’ cancellation began to be registered. But surprisingly the aircraft manufacturer Airbus had better results in 2010 than in 2008, and the traffic began to slide up.
In fact the aeronautics market cannot be studied deeply as a whole entity. It is composed by sub-families that have to be considered in order to propose a pertinent analysis, even if in the end, the traffic is the factor ruling all the industry (airlines results, and then orders to manufacturers).
Concerning the manufacturers which are the one that this...