China Southern Airline Market Analysis

Topics: Airline, Beijing Capital International Airport, China Eastern Airlines Pages: 11 (3414 words) Published: December 6, 2011
1) Executive Summary
From this report, we will discover the marketing plan of the airlines company. Firstly, we will state the objective of the china airlines company, and how we analysis the internal & external environment of the company. Furthermore, we will find out the marketing objective and the possible marketing strategy available for china southern airlines. Moreover, marketing mix and the extended marketing mix will be analyzed on china southern airlines. In the end, we will briefly show some of the budgeting to show that the company financial situation.

2) Mission statement and objective
China Southern Airlines is committed to putting the customer first and dedicated to exceeding its customers’ expectations by offering reliable, on-time and convenient quality customer service. China Southern Airlines attaches key importance to its branded products strategy, offering a host of reliable and convenient on-time services. The airline currently has the largest frequent flyer program in China - The Sky Pearl Club - with more than 8 Million members who enjoy free flights and flight upgrades.

3) Environment Analysis
This section is about the internal/external environment, company analysis, competitor analysis, and customer’s analysis. 3.1) PESTLE Model
3.1.1) Political Factors
China's Southern airlines are in a stable political environment. But any country cannot block and cut off the threat of terrorism especially for international air transport properties cause the cost of security for China's Southern airlines always remain at high level. Policy support and government subsidies

state-owned airlines have a dominant position in the market, they not only enjoy many aspects of policy support, such as flight time, tax privilege, financial assistance, but also in crisis they can receive massive government allowance to get through. Compared to Air China, Southern airlines get disadvantage in policy.

3.1.2) Economic Factors
Global economy
Sustained economic growth brings development opportunities for the airline and also a huge challenge. With the sustained rapid development of China's economy, expanding in air transport market is affirmative. But this growth rate is regional imbalance Domestic economy

In domestic market, the transport turnover growth rate in 2010 will predictable remains at 15%. Therefore, domestic airlines are facing a relatively liberal market environment and they are the biggest beneficiaries in China's rapid economic growth and stability.

3.1.3) Social Factors
Enhancement of consumer group awareness
With growing popularity in airplane travelling, consumer group awareness on air transport is significantly enhanced. More consumers are already familiar with the details of air transport and services. This change forces the airlines to provide more personalized services, and also strengthen the guidance of consumer group awareness to specially understand civil aviation. Changes of tourist tastes and trends

Air transport and tourism has a strong relationship because most seats of airlines are offered to passengers for trip. More and more passengers have a wealth of travel experience. They expect to be served more individually, which brings a new trend that airlines become more concerned on market demand and try to design out better products and services. 3.1.4) Technical Factors

Maturity of Internet and video phone technology
Airlines are establishing their own websites to advertise and promote their products; electronic tickets in air transport makes it possible to extensive use of Internet-based B2C direct sales model; in addition, the highlight personalized and participatory self-service check-in online, paperless airline boarding passes and other technologies are the responses to changes in Internet technology on the traditional model. Besides that, the video phone technology has matured and has brought a significant and far-reaching impact. 3.1.5) Legal...
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