Phase 1 Assignment Brief
“Silverjet: a fallen star”
Reporter: Pham Van Anh - FB4A - FTU
November 8th , 2012
Market Segmentation is recognized as an indispensable tool of marketing strategy, which determine about whether business are able to earn profits and durable subsist. This statement could be unequivocally demonstrated in the case of Silverjet airline phenomenon in period of 2006 – 2007. Though company was bankrupted later in 2008, there were lots of significant experiences for this industry that Silverjet left behind.
Below an overview of aviation market segmentation targets, there are three main parts which have been arranged according to the criteria of customer income, demands, career characteristic: Economic Class, Business Class and finally is First Class. Another words, airlines segmented its market based on the two main basis are Psychographic and Behavioral. To be more specific, each class have different service and price: Economic Class for people who have low-income, primarily belong to labor class or simply enjoy travelling; Business Class with fares are relatively expensive, for entrepreneurs who travel frequently for work reasons; and First Class, a luxury ticket accompany top services exclusive for high-income class people who have financial potential.
Similarly looking back on the Silverjet situation, it is crystal clear that company targeted in low-cost airlines for Business class. Beside the conducting cost-leadership strategy, Silverjet also launched interesting benefits for passengers: quality and comfortable seats that could be compared to the First class of other well-know firms (six feet three long beds); check-in as late as 30 minutes before departure with a dedicated terminal and security process at Luton; in-flight food and drink delivered by hand; woman-only lavatory on board and only $20 carbon offset fee on every ticket(1). These new start ups claimed that their operating costs were substantively reduced...
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