• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Product - Singapore Airlines In-flight services.

Extracts from this document...

Introduction

'Principles of Marketing' Group Coursework Product: Singapore Airlines In-flight services Part1. Brief background of the firm: Singapore Airlines was created in October 1972 following the split of Malaysia - Singapore Airlines. The split happened due to the difference between the business objectives: Singapore branch had an objective to service more international routes, whereas Malaysian branch concentrated more on regional services. When it was first launched, Singapore Airlines had quite a modest fleet comprising 10 aircrafts, a staff of 6,000 and a route network of 22 cities in 18 countries. In addition to that, Singapore Airlines already had 25 years of experience under their belt and unlimited ambition to become truly global. Immediately after the launch, Singapore Airlines went through very extensive expansion and modernization of its fleet. Longer-term strategy of investment and product innovation followed, which helped the company to build strong brand and profitability. As the result, in thirty years time, the hard-working little airline from remote Asian island became a widely recognized global player. Today, Singapore International Airlines (SIA) is among the ten biggest airlines in the world, with more than 20 subsidiaries. The overall excellence of SIA is repeatedly recognized with the highest international awards, such as 'Best International Route Airline', 'Best Airline in the World' and 'Best Trans-Pacific Airline'. SIA is a leading airline in terms of innovation and modernization: it operates on one of the world's youngest fleets, which is renewed every 4.75 years (figure 4). It leads in product and services innovation, offers wide range of in-flight entertainment, exceptional cuisine and a level of services unmatched by any other airline. Singapore Airline's product: Kotler defines service as 'activity or benefit that one party can offer another, which is essentially intangible and does not result in the ownership'1. Airline service has four characteristics: intangibility, heterogeneity, variability, and perishability. Applicability of these four points to SIA can be described as follows: airline service is largely intangible and highly dependent upon its quality and presentation. ...read more.

Middle

maintaining high profits, and b) continuous development, innovation and improvement of its outstanding level of service. Targeting SIA segments its customers using the Activities-Interests-Opinions-Demographics framework. A customer audit identified that SIA's most profitable customers, in good and bad times, are business and first class passengers on transcontinental routes. SIA's response was to enhance services to these passengers by introducing more capacity on long-haul flights and by up-scaling its services. Recent $300 million revamp, the biggest in SIA history, was the answer. Further than that, the revamp involves upgrading economy class as well, since economy passengers comprise the largest chunk of SIA customers. Positioning against competitors SIA had positioned itself to execute a strategy of differentiation, offering its passages a level of service that was seldom. SIA is the first airline to have attained a 'top quality service' position in the market and a 'top quality service' image in customers minds. SIA's focus is on continuous enhancement of quality of service, not on reducing costs. And as such, SIA consistently delivers its service promise. For example, SIA operates its catering subsidiary that comprise the world's largest flight kitchen and prepares 45, 000 meals a day, following the passengers menu pre-orders. SIA's luggage delivery subsidiary promises to deliver passengers' luggage within 10 minutes of arrival. As above, outsourcing of non-inflight services to SIA's subsidiaries helps to maintain the highest level of service across the board. Increasing competition in in-flight service from international carriers such as Thai Airline, Cathay Pacific, Malaysian, etc gave increasing pressure to distinguish SIA from the others. Additionally, the tragedy of 9/11 has put greater pressure in the air travel market. Alliance is the only reasonable way of solving problems. SIA joined the 'Star Alliance' as a means of growth in overseas market, Europe and the United States. However, there are some concerns about the ability of the other partners to offer the same service quality as SIA do. ...read more.

Conclusion

SIA's customer segmentation strategy reflects different types of their target customers. Not all customers share similar lifestyle or have the same income, which is why SIA embarked on a journey of segment marketing, aiming its services at specific income-, lifestyle-, and preference-led customers. For example in order to cater for its business clients, SIA introduced a 'SpaceBed' - a seat that transforms into a lie-flat bed, which will become a standard on every aircraft of the new Business Class. SIA is also planning to launch 'CyberCabins', which offers a wide range of high-tech features such as internet and network gaming for those who always want to stay in touch. SIA is planning to gradually install 'CyberCabins' in all classes. Another future targeting strategy is to have a much wider choice of meals, spirits, and wines, especially for the connoisseurs. Positioning Singapore airline's market positioning for the future is also changing. Its aim is to develop a marketing mix and product that would fit the customers' needs and be established in the market. Despite the immense success of its marketing icon ('Singapore Girl'), SIA is planning to alter its campaign and gradually develop a different positioning technique in each type of market. SIA has continued and will continue to raise their standards with regular product innovations, new features and their world-renowned impeccable service. The results show that operating profit has increased by 12,8% (post-tax by 4,7%) in the first half of 2002 compared to the same period last year. This means that more and more people are choosing to fly Singapore airlines. The fact that SIA has won an outstanding number of world awards (inc. 'Best Airline In The World', 'Best First Class', 'Best Business Class', 'Best Economy Class', and 'Best Scheduled Airline') means that the Singapore Girl has succeeded again in gaining customers' trust. As for the future, things are looking favourable as more new products are introduced to cater for customer needs, so that SIA will be able to attract more new flyers. Appendix. Table1. Market Value to Sales ratio among major Asian airlines Table 2. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Market Segmentation, Targeting and Contexts

    Differences in Organisational Transactions * Buying specialists are often used. Organizations often employ people who are professional purchasing agents. Just as sales agents are professional specialists at finding organizations that need the products that their employer produces, purchasing agents are specialists are professional specialists at finding what their employer needs.

  2. Investigation of a medium to large sized business to produce a marketing proposal to ...

    Internal sources are information already held within the given organisation, usually in large databases. These databases can hold a large amount of data, which can easily be stored and retrieved.

  1. Virgin Atlantic Airways: 10 Years Later.

    and they would not have to negotiate for access to new airports. Gatwick Airport is located in London, and currently used by Virgin Atlantic. The airport is not accessible by London's Underground as is Heathrow, has only one runway, and is not recognized as an option by foreign travelers.

  2. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    Not much can be done for customer who leave the region or go out of business but much can be done about the customer who leaves because of poor service shoddy products or high prices. The company needs to examine the percentages of customer who defect for these reasons.

  1. Marketing Dissertation. An investigation of Celebrity Endorsement, with particular focus on the long-term ...

    Repeated pairings of the two 'stimuli' to be associated is key to the associative learning process, therefore the two must be shown together in the brand communications. Each celebrity can encompass a variety of endorsements (McCracken, 1989), there are a number of different strategies taken to endorsing a product/brand.

  2. SWOT analysis on the Virgin Group.

    Virgin saw the growing high demand for mobile phones and quickly moved into the mobile business with a well-known company, One2One. This was an ideal product, as they would be able to sell the phones from their 'Virgin Megastores' and other retail outlets.

  1. Marketing Study of Southwest Airlines

    Airlines also face possible legislation to regulate airline customer service practices. It is important to understand the regulatory environment under which airlines must operate for one simple reason. Strict enforcement of laws and regulations makes it very difficult to differentiate air travel on the basis of travel safety.

  2. Southwest Airlines Marketing Strategy

    Fleet include 7626 aircrafts including 6629 passenger aircrafts * 59% of the 164.6 million domestic person-trips by airplane in 2005 were taken primarily for leisure purposes, versus 41% for business/convention travel or combined business/pleasure. During the last 50 years, the airline industry has varied from reasonably profitable to devastatingly depressed.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work