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I. EXECUTIVE SUMMARY
Cebu Pacific, the low fare leader in the Philippines entered the market on March 1996 and pioneered the “low fare, great value” strategy in the local aviation industry. Cebu Pacific offers the lowest year round ‘all-inclusive’ fares for its domestic sectors while it continues to sell ‘Go’ fares - providing the lowest year-round fares in all its international destinations. It remains to be the pioneer in creative pricing strategies as it manages to offer the lowest fare in every route it operates. The ‘Go’ fares are not promotional and are exclusive of surcharges and government tax.
Cebu Pacific is the leader in innovation and creativity in the local aviation industry, is the first local airline to introduce E-ticketing, prepaid excess baggage, and seat selection in the Philippines. Customers have also learned to anticipate a uniquely upbeat flying experience with Cebu Pacific, as this is the only domestic carrier that offers fun in the skies with its games on board popularly known as “FunFlights” together with its entertaining in-flight magazine - Smile.
We have identified three major competitors of Cebu Pacific which are Philippine Airlines, Air Philippines and Zest Air.
Based on the CPM, Philippine Airlines is leading in the airline industry it got a total score of 3.70, because of its strength in brand awareness and service quality. Cebu Pacific Air follows with 3.50. Its low fare pricing is its main advantage against competitors.
Based on the EFE and IFE matrices in the previous chapters, with resultant scores at 2.95 and 2.80 respectively, this IE matrix tells us that our company should hold and maintain its position. The company should pursue strategies focused on increasing market penetration and product/service development.
We have identified two strategies to improve Cebu Pacific. Product and Service Development strategy seeks to increase sales by improving or modifying present products or services. Product and
Cebu Pacific, the low fare leader in the Philippines entered the market on March 1996 and pioneered the “low fare, great value” strategy in the local aviation industry. Cebu Pacific offers the lowest year round ‘all-inclusive’ fares for its domestic sectors while it continues to sell ‘Go’ fares - providing the lowest year-round fares in all its international destinations. It remains to be the pioneer in creative pricing strategies as it manages to offer the lowest fare in every route it operates. The ‘Go’ fares are not promotional and are exclusive of surcharges and government tax.
Cebu Pacific is the leader in innovation and creativity in the local aviation industry, is the first local airline to introduce E-ticketing, prepaid excess baggage, and seat selection in the Philippines. Customers have also learned to anticipate a uniquely upbeat flying experience with Cebu Pacific, as this is the only domestic carrier that offers fun in the skies with its games on board popularly known as “FunFlights” together with its entertaining in-flight magazine - Smile.
We have identified three major competitors of Cebu Pacific which are Philippine Airlines, Air Philippines and Zest Air.
Based on the CPM, Philippine Airlines is leading in the airline industry it got a total score of 3.70, because of its strength in brand awareness and service quality. Cebu Pacific Air follows with 3.50. Its low fare pricing is its main advantage against competitors.
Based on the EFE and IFE matrices in the previous chapters, with resultant scores at 2.95 and 2.80 respectively, this IE matrix tells us that our company should hold and maintain its position. The company should pursue strategies focused on increasing market penetration and product/service development.
We have identified two strategies to improve Cebu Pacific. Product and Service Development strategy seeks to increase sales by improving or modifying present products or services. Product and