Singapore Airline Marketing Plan: Economic Environment (Term Paper Sample)

SINGAPORE AIRLINE MARKETING PLAN
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0.0 Executive summary
The main goal of this plan is to increase the sales of First class tickets, with the aim of increasing the company overall profits. To achieve this goal, this marketing plan provides a detailed evaluation of Singapore Airline situation analysis, industry analysis, marketing objectives, target market, marketing mix, financial forecast, implementation plan and the evaluation plan.
This marketing plan aims to achieve the following specific marketing objectives; building brand awareness, growing the market share, targeting new customers, entry into new markets both locally and internationally, improving stakeholders’ relationship, increasing internal communication and increasing profit.
To achieve these goals the company shall engage in various strategies like social media marketing, product promotion activities, developing an informative website, and enhancing customer relations
The success of this marketing plan will largely depend on the availability of monetary resources to implement the highlighted strategies. As such the company shall allocate a sum of $ 1000,000 for the purpose of implementing this strategy.
This plan will be evaluated against the expected sales. The sales are expected to increase by 50% every year. As such, if this target is achieved then the plan will be considered a success. However, in the event that the targeted 50% increase is not achieved the success of the plan will be evaluated against the cost of implementation. Therefore, the plan will be considered to have totally failed if the expected benefits are less than the cost, and any continued implementation of the plan will lead to further losses.
TABLE OF CONTENTS
1 Executive Summary…………………………………………2
2 Introduction………………………………………………….5
3 Situation analysis……………………………………………6
1 PEST…………………………………………………………6
2.1.1 Economic Environment……………………….6
2.1.2 Technological Factors…………………………7
2.1.3 Political / Legal factors………………………..7
2.1.4 Social and Cultural factors……………………8
2 Industry Analysis……………………………………………8
2.2.1 Industry Structure……………………………..8
2.2.2 Industry appropriability……………………9
2.2.3 Long term viability…………………………….9
3 SWOT Analysis………………………………………………10
4 Marketing Objectives………………………………………..11
4 Build brand awareness……………………………………12
5 Grow market share …………………………………….12
6 Target new customers ………………………………….12
7 Enter new markets ………………………………………12
8 Improve stakeholder relations…………………………..13
9 Enhance customer relations ………………………………13
10 Improve internal communications…………………………13
Increase profits……………………………………………13
5 Target Market…………………………………………………14
4.1 Singapore Airline Target Market……………………………………….14
4.2 Customer Needs…………………………………………………………14
4.3 Product Market Position…………………………………………………14
6 Marketing Mix…………………………………………………….15
Product………………………………………….15
Place…………………………………………….17
Promotion………………………………………17
Price…………………………………………..18
7 Financial forecast……………………………………………………..19
8 Implementation Activities……………………………………………..19
9 Evaluation plan…………………………………………………..21
10 List of references …………………………………………………22
Singapore Airline Marketing Plan
1.0 Introduction
Singapore Airline operates from Changi airport in Singapore. The company was founded in 1974 as Malayan airways. In terms of revenue, Singapore Airways ranks among the top 15 global carriers; it ranks at position 10 as regards international passengers carried globally. In the year 2010, it was named the second largest global airline by the International air Transport Association in terms of market capitalization and at the time the Airways was worth US$ 14 billion. The company operates in the Airline industry. It is estimated that worldwide there are approximately 5000 airlines issued with IATA codes. As such, the industry is characterized by increased competition and huge operation costs. The success of a company operating within this industry is largely determined by its ability to reduce its operation cost as well as having a sound marketing plan.
The specific product to be discussed in this report is the First class package; however the airline offers other product packages like Economy class, Singapore airline suites, Business class and Premium economy class. Singapore Airways introduced the First class package in the year 2013. Some of the unique features associated with the package include adjustable seats, 24-inch screens, passenger control units, video touch screen handsets among others.
This plan will aim to provide Singapore Airline detailed situation analysis, industry analysis, SWOT analysis, marketing objectives, analysis on the target market, the marketing mix, financial forecasts, marketing implementation activities as well as its evaluation plan. These features constitute the elements of the Company’s market plan with respect to First Class package.
2.0 Situation analysis
According to Cravens and Piercy (2006), situation analysis refers to the techniques used by managers to thoroughly scrutinize the internal and the external environment of the organization. Conducting a situation analysis is the cornerstone of an effective marketing plan. A situation analysis helps the managers to understand their opportunities and challenges as well as their strengths and weakness, which is useful when developing a marketing plan. One of the tools used by managers to conduct a situation analysis is PEST.
2.1 PEST
It refers to a framework of micro-environment factors like economic, technological, political or legal and social and cultural used in strategic management for conducting environmental scan. As such, PEST usually concentrates on the external environment of the organization with the aim of indentifying the external factors that impact on the organization and its products (Armstrong, Kotler, Harker & Brennan, 2012).
2.1.1 Economic environment
According to Brenner and Schott (2009), globally the airline economic environment is characterized by oil price fluctuations, high cost of oil, increased competi...