Singapore Airlines Marketing Strategy Analysis

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  • Topic: Singapore Airlines, Airline, Malaysia Airlines
  • Pages : 12 (3109 words )
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  • Published : October 25, 2011
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GROUP MARKETING PROJECT ASSIGNMENT|
SINGAPORE AIRLINES|
TEAM MEMBERS: |
FANNI LIGABRIEL LOWLAKSHA MEHTALOW SEOW PIN|
17-Sep-11|
|

 |  TABLE OF CONTENTS| PAGES|
 |  |  |
 | EXECUTIVE SUMMARY| 3|
 |  | |
1| BACKGROUND| 4|
 |  OVERVIEW OF ORGANISATION, PRODUCT AND BRAND| |
| | |
2| ENVIRONMENT ANALYSIS| |
 | 2.1 PEST ANALYSIS| 5-6|
 | 2.2 SWOT ANALYSIS| 7-8|
 | 2.3 MARKETING MIX| 8-9|
| | |
3|  MARKETING STRATEGY EVALUATION| |
 |  3.1 SEGMENTATION| 10|
 |  3.2 TARGETING| 10|
 |  3.3 POSITIONING| 11-12|
| 3.4 MARKETING CHANNEL| 13|
| | |
4|  RECOMMENDATIONS| 14-16|
 | | |
 5| CONCLUSION| 16|
 | | |
 6| REFERENCING| 16|
 |  | |

EXECUTIVE SUMMARY
This report is commissioned to do a study on the inter-relationship of the marketing strategies of Singapore Airlines (SIA), its prestige brand and its performance. We draw attention to Singapore Airlines since 1972; the introduction of Singapore Girl has become one of the leading icons for the SIA and this has developed a brand differentiation among other major airlines and established itself as the “Most Profitable Airlines in the world.”

Over the past few years, although SIA has generally maintained its market share, the profits decreased significantly, and with further analysis, using PESTEL, it notably affirmed that SIA faces a challenging and unpredictable operating environment with instability in economic climate and tough competition which it has little control over. According to the business time (dated 12 Sept 11), SIA fuel cost accounted for more than half of its operating cost which eroded its profit margin.

Using SWOT, we have discovered that SIA tends to focus on the product enhancement rather than seeking what customers actually want, its latest product “class beyond first class suites” has demonstrated the lack of consultation. It poor adoption of new internet marketing concepts demonstrated on the poorly revamped website portal of SIA which has ignited anger and frustration of their customers.

With external factors like deregulation of the airline industries resulted in the low barriers of entry and poor understanding of budget airline economy allowing the budget airlines to seize the market shares of the budget-conscious travellers with their ever increasing of new fleets of the new aircrafts boosting better safety and fuel efficiency

The report evaluates and concludes that launching their new advertisement campaign, refocused its “Singapore girls” image to differentiate itself and also launching a new brand “SIA-X”, to serve the medium and long haul sectors to tap on this budget segment of the market. This will offer an alternative option for consumers compared to Air Asia and Jetstar. This differentiates the low price budget segment from its economy class segment, thereby possibly reducing the pricing pressure. It is also evident that SIA needs to address the basic of marketing concept that is to understand the needs and wants of its customers.

1. BACKGROUND
The birth of Singapore Airlines Limited (SIA) was established since 1972 after the split from Malaysian Airlines. In the same year, the icon of the Singapore Girl was formed to create a common symbol to facilitate the airline marketing and advertising campaign.

“Singapore Airlines was in a different position than most other airlines at the time. There were no domestic routes to serve it was forced to immediately start competing with international airlines for routes, getting access to airports, securing flight slots and landing rights, and attracting a new customer base.” (Matin-Roll-Business & Brand Strategist)

Even since then, SIA has evolved itself to be one of the most reputable brands around the world, differentiated through it young aircraft fleets spreading its wings over five continents. SIA spread its wings from a regional...
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