Case Analysis on Airline Industry

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 9 (2522 words) Published: March 17, 2006
Case Analysis on the Article, ¡§Competitive
Turbulence in the Airline Industry¡¨
(Segmentation, Targeting
and Positioning)


Airline industry has 4 sectors identified:
Full-service, Budget, Limited-service, Premium-service
Segmentation and Targeting:
Psychographic, Behavioral, Geographic and Demographic
Value proposition matrix (more for more, less for less, etc.)
Conclusion and Recommendations:
„«SIA in marginal value proposition position, needs to boost promotions and sales pitch. „«Low-cost carriers have good customer attraction value, must boost customer retention through loyalty programmes. „«SIA must have clear positioning, i.e., ¡§The Best Airline in SEA¡¨

Title page ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K.1 Executive Summary ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K...2 Table of Contents ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K...3

Introduction ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K..4

Product Analysis ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K.9
Positioning strategy ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K9
Segmentation and Targeting of Customer groups ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K12

Conclusions ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K.17

Recommendations ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K..19

Summary ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K..21

Bibliography ¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K¡K. 22


As technology rapidly develops in the 21st century, so are goods and services in the competitive market. The airline industry in Asia is one of those undergoing ¡§a tidal wave of changes¡¨, causing a drastic alteration in the business landscape. Some of these changes were not heard of before, such as nonstop air travel from Singapore to USA, and even the kinds of entertainment systems provided onboard the plane.

Moreover, the grueling battle between prolific companies to compete for customer attraction and in the end, loyalty, resulted to further segmentation of the airline industry. Apart from the established full-service airlines (i.e., Singapore Airlines), three other market positions budded. They are: budget airlines, limited-service airlines, and premium-service airlines.

In 1972, Singapore Airlines (SIA) was created from the divergence of Malaysian-Singapore Airlines Ltd. A year later, it came to be a full-service airline with destinations as far as Australia and London. It has remained competitive by being always on the money when it comes to equipment acquisition and the latest in aircraft technologies, as well as the interior aesthetics of the plane and good entertainment of the riding passengers.

However, the dynamics of the airline business has always been fast. And the people behind the works get smarter. Can Singapore Airlines stay at the height of its glory by giving exactly what customers really expect to get?

The cultural and social impact due to the rapid changes of the means of moving about followed the trend of the airline industry, being the fastest way to reach a certain place at an agreeable cost. People nowadays can easily go to 3000 kilometers in just one day. This is due to the fact that as airlines got competitive, lowering the price is one of the easiest means to capturing new customers and keeping current ones. The budding budget airline did just that.

Unbelievably low prices are tagged to domestic and regional flights by Air Asia, a budget airline based in Malaysia. The carrier managed to reduce greatly on its price by means of no-frills policy. This means no free meals, snacks and drinks; no free excess baggage, no refunds. In general, no luxuries in any form whatsoever, unlike the...

Bibliography: Kotler, P. and G. Armstrong. (2006). Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers. Principles of Marketing. International edition. Pearson Prentice Hall. Upper Saddle Rive, New Jersey. pp. 180-214.
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