Marketing Report on Klm Royal Dutch Airline

Topics: Amsterdam Airport Schiphol, KLM, SkyTeam Pages: 11 (3128 words) Published: November 10, 2012
Table of Contents
1.0 Executive Summary2
2.0 Introduction3
3.0 Situational Analaysis4
3.1 Internal Strengths and Weaknesses4
3.1.1 Strengths to Build Upon4
3.1.2 Weaknesses to Overcome5
3.2 External Opportunities and threats6
3.2.1 Opportunities to Exploit6
3.2.2 Threats to Overcome7
4.0 Mission Statement9
5.0 Organisational Goals and Objectives10
6.0 Positioning Strategies11
6.1 Products11
6.2 Food11
6.3 Operation12
7.0 Marketing Mix Strategies13
7.1 Product13
7.2 Price13
7.3 Place13
7.4 Promotion13
8.0 Implemention and Control15
8.1 Implemention Schedule15
9.0 Additional Considerations17
9.0 Conclusion18
10.0 Reference19

1.0 Executive Summary

The main purpose of this report is to create a tactical marketing plan for KLM Royal Dutch Airlines. The report comprises the marketing initiatives of KLM for years especially recent years, which have been created through identifying and analyzing its own strengths, weaknesses, opportunities and threats. KLM Royal Dutch Airlines is the world's oldest airline which is still operating under its original name. It also includes KLM cityhopper, and Martinair. KLM has three core businesses: passenger transportation (Passenger Business), cargo transportation (KLM Cargo), and aircraft maintenance (KLM Engineering & Maintenance). It offers customers global access at competitive prices with a good and varied product. In virtue of its merger with Air France, KLM is now part of the Europe's leading airline group and one of the World's most important airlines. However, the position of such renowned leader as the KLM Royal Dutch Airlines is also experiencing some difficulties and obstacles with its operation and management. Due to the global economic crisis and cut-throat competition, KLM is facing a decline in profits and margins; it’s also under great pressure from the reduced demand in the market; its delayed or cancelled flights rate is high. In order to improve these issues and maintain its leading position in the aviation industry, this report also formulates some appropriate aims and objectives of KLM. Also, it identifies and discusses several marketing strategies for KLM to achieve these goals. According to the strategies, this report has designed an implemention and control aimed at ensuring that the desired results are achieved. In the end, this report discusses some potential issues and problems that KLM may face in the process of the implementation and control . 2.0 Introduction

KLM Royal Dutch Airlines was founded on 7 October, 1919. KLM's headquarters are in Amstelveen near its hub at Amsterdam Airport Schiphol. It is today the oldest airline still operating under its initial name. KLM has been part of the Air France since the merger in 2004. It is the core of the KLM Group, which further includes the wholly-owned subsidiaries KLM Cityhopper, and Martinair. KLM operates worldwide scheduled passenger and cargo services to more than 90 destinations. With smart partnerships and pioneering new destinations, KLM offers global access through its extensive network. By responding to market opportunities and technological developments, KLM offers customers a contemporary product. Currently, it has about 33,000 employees ( KLM, n.d.). 3.0 Situational Analaysis

3.1 Internal Strengths and Weaknesses

3.1.1 Strengths to Build Upon

Strong Route Network
KLM is the only carrier on 61 of the routes it operates, standing for 45% of its ASKs from the airport . With its offer of a a total of 119 non-stop scheduled destinations to 58 countries and almost 55% of all scheduled flights at Amsterdam Schiphol (AMS) airport KLM enjoys a dominant position at its home base as well as in the world market (“KLM still growing at Amsterdam; UK and Norwegian markets important; three new routes in 2008”, 2008). Besides, KLM is still expand...
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