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Company Report and Promotion Plan for British Airways - Essay Example

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Company Report and Promotion Plan for British Airways

Since privatization, the airline has grown in leaps and bounds to dominate the industry, but competition has also been growing world widely (Buck, 2010:134). This report seeks to provide a competitive analysis of British Airways and create a promotional plan for the company. The promotional plan will include a marketing mix analysis, time plan, and a brief budget forecast for the expenses and revenues of the promotion. Competitive Analysis British Airways has several competitors offering the same services and which lie in the same operating area. However, the airline industry in the UK has five strategic categories, which include specialist, non-schedule, no frills, local, and mass service (Kotler, 2002:139). British Airways falls in the mass service category, with other competitors such as Virgin Atlantic, Lufthansa, KLM, and Air France. No frills airline includes Ryan Air and Easy Jet, while non-schedule airline include Thomson. In local airlines, there is BMI and Palm Air in the specialist category (Bucks, 2010). The other four categories do not offer stiff competition compared to the mass service strategic group. British Airways’ main competition comes from serious contenders, who include Virgin Atlantic and United Airlines incorporated in the Star alliance that is controlling BMI. Despite not being in the same strategic category, no-frills airlines are a significant challenge to the British Airways, especially due to their low cost fares (Kotler, 2002:134). In addition, the recent sharp increase in oil prices and the economic downturn has led to a war price between the three major airlines plying the London Dubai route, British Airways, emirates, and Virgin Atlantic. Consequently, fare prices have gone down by almost thirty percent, which indicates that competition is still fierce. Current Marketing Mix The marketing mix, or the 4Ps, is a marketing business tool used for determining the selling point of products and services. This analyzes the current marketing mix of British Airways, emphasizing on the price, product, and promotion elements. The report neglects the place element as it primarily deals with the distributions channels of the tickets, including travel agents, internet, and telephone (Doyle, 2001:94). This element seems okay and without much change in the industry. Product The core product of British Airways is the operation of domestic and international scheduled flights for carriage of passengers, mail, and freight, and provision of ancillary services. We may refer to the product that British Airways offers as a major service with accompanying goods. The primary service that passengers buy is the air transport from one location to another. British Airways faces enough challenges in differentiating its products, as the transport from one airport to another is essentially the same for every airline (BBC, 2001). The only opportunity to differentiate its products exists in the levels of ‘augmented products’, which exceeds the basic needs of the passengers and are the extra services the airline offers. The firm offers air travel in three classes: first class, business class, and low class. The airline strives to offer premium services in all travel classes. (Rogers, 2002) Pricing The pricing element is a very complex process, especially in the airline industry. Companies may adopt any of the five pricing objectives: prices for survival, pricing for quality leadership, pricing for optimal current profit, pricing for ...Show more


Name Institution Course Tutor- Date Company Report and Promotion Plan for British Airways British Airways is United Kingdom’s largest schedule airline. The company also engages in international and domestic carriage of mail and freight, and other ancillary services…
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Company Report and Promotion Plan for British Airways essay example
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