Marketing For Aviation Assignment 2
Marketing For Aviation Assignment 2
(F2019001175)
Tuba Yasin
Mustafvi
(F2019001137)
Ayesha Haleem
(F2019001154)
MARKETING FOR
AVIATION
Section:B
University of Management and Technology
Institute of Aviation Studies
Categories the airline products (Qatar Airways, Emirates Airways, and British Airways)
on the basis of the Boston Box Matrix such as (Star, Cash Cow, Wild Cat/Question Mark,
and Dog) and suggest what strategy (s) the airlines need to be adopted.
Boston Box Metrix
The Boston Consulting Group (BCG matrix) helps in long-term marketing strategy. It enables a
business to assess growth potential by taking a look at its new product, also known as the
Growth/Share Matrix. The matrix is divided into 4 segments using information on market growth
and relative market share.
Question Marks (Products with low market share and high market growth)
Stars (products with a high market share and high market growth)
Cash cows (High market share and low growth markets)
Dogs (products having low market share or growth rate.)
Qatar Airways
High
Market
Growth
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University of Management and Technology
Institute of Aviation Studies
Stars
The Qatar Airways BCG matrix has the financial services, business and first class services lie in
stars. It runs a business in a market with exciting talents. These strategies provide Qatar Airways
with a major portion of its revenue.
Recommendations
The recommended way to proceed for Qatar Airways is to concentrate on research and
development in order to create unique properties. The firm will produce income in the
future due to product development strategy, which will ensure that this strategic
business unit turns into a cash cow.
The confections market is one that draws customers and has been growing over time.
Only a small share of this profitable market is held by Qatar Airways. The low sales are
due to Qatar Airways' poor distribution and limited reach in this market segment. Market
penetration is the recommended approach for Qatar Airways, in which it attempts to
make its product available in more places. Qatar Airways will guarantee greater sales by
doing this, turning this important economic sector into a cash cow.
Cash cows
Supplier management, economy class and foreign food strategies lie in this segment of BCG
matrix. Qatar Airways has a large market share, but the market growth is declining.
Recommendations
Despite having a significant market share, Qatar Airways has low market growth. Qatar
Airways should stop making new investments in this market and keep operating this
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University of Management and Technology
Institute of Aviation Studies
strategic business unit for as long as it is profitable, according to the recommended
course of action.
The suggested action plan for Qatar Airways is to make the necessary investments to
remain operational If Qatar Airways loses money and goes bankrupt, it should sell off
this significant commercial unit. It also goes by the name of diversification.
Dogs
In Qatar Airways' BCG matrix, the plastic bags lie in dog segment. This important business
segment has been losing money for the last five years. The market in which it operates is also
contracting as a result of expanding environmental issues.
Recommendations
The recommended plan of action for Qatar Airways is to enhance investment in the
company so that it becomes a cash cow.
The suggested course of action for Qatar Airways is to purchase out this strategic
business division and limit its losses as much as possible. If the market grows once more
in the future, Qatar Airways will always make money.
However, due to growing health concerns, more people are now shunning artificial
flavors. Qatar Airways doesn't possess a significant piece of the market, which is
declining
Emirates Airways
Emirates, the largest international airline in the world, offers service to 158 cities in 85 different
countries. Emirates operates 269 aircraft and is the world's largest carrier of the Airbus A380 and
Boeing 777 family of aircraft. Emirates, one of the most well-known airline brands in the world,
is renowned for its opulent interiors, gourmet cuisine with regional influences, award-winning
in-flight entertainment system called ice, and unrivalled customer service provided by its
impressive multilingual Cabin Crew from more than 130 different countries.
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University of Management and Technology
Institute of Aviation Studies
Emirates Airways
High
Market
Growth
Low High
Market Share
Stars
Emirates First Class and Emirates Business Class are two services that can be positioned in the
BCG Matrix. Emirates' two significant services control a large market share in this rapidly
growing industry. With sufficient investment in these two services, the company will be able to
increase market share even more. The corporation has already utilized all of the potential in its
services. As the attraction and demand for first and business class travel increases, Emirates
Airlines will have more opportunities for growth. Their additional services, which include
unlimited customized transportation to and from the airport, are a convenient addition to their
core offerings. Additions like the onboard lounges and entertainment systems have given them a
good return on their investments.
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University of Management and Technology
Institute of Aviation Studies
Recommendations
To maintain its great service Emirates should concentrate on maintaining its services on a
worldwide scale while making sure that all of its clients in the Middle East and South Asia
receive quality service and aircraft quality. So, emirates should focus on expansion of their
business and product development.
Question marks
"Emirates Holidays" was just released by Emirates. Although the potential is huge, the new
service has a little market share. Emirates has been putting in effort to boost "Emirates
Holidays'" recognition and market share. Family vacations, vacations, and summer deals to
Dubai, Mauritius, and the Maldives are all doing well. Emirates Holidays is struggling with US
aviation sector competitiveness. Emirates needs to overcome further obstacles if it wants to
dominate the tourism industry. The air travel has frequently been marketed in ads.
Recommendations
Their holiday services have failed to generate income or even hold onto their position in the
competitive marketplace. Emirates should focus on product development strategy and market
penetration to gain revenue in the competitive market. They should provide reasonable deals to
passengers to earn more revenue. Emirates Airlines needs to invest significantly in itself to
remain sustainable and avoid turning into a dog.
Cash cows
The cash cow of Emirates Airline is Emirates Economy Class. It has always had a large segment
of the market, but there is no growth.
Recommendations
Emirates Airlines is frequently used, especially the Economy class seats. The market for
Emirates Economy in Asia is still developing. Emirates Airlines should continue to profit
from its "Economy services" and use the money to add new products and enhance its
brand.
Emirates has promoted their cash cow while also concentrating on giving its customers a
better experience in Economy. Recent economy passengers' experiences with the Boeing
777 have been excellent. It should apply diversification strategy to gain more revenue.
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University of Management and Technology
Institute of Aviation Studies
British Airways
The UK's national airline, British Airways, has been taking passengers where they want to go for
more than a century. The airline connects Britain with the rest of the world and the rest of the
world with Britain, prioritizing customers, sustainability, and offering best customer service.
High
Market
Growth
Stars
The British Airways BCG matrix has long hauls and EU routes flights services strategies
consider as star. It runs a business in a market with exciting talents. These strategies provide
British Airways with a major portion of its revenue. British airways have high market share in
markets with rapid growth.
Recommendations
The process of service delivery requires to enhance in order to improve quality. By using
smaller airports, BA would be able to supply services to customers.
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University of Management and Technology
Institute of Aviation Studies
Due to the frequent complaints about baggage losses, British Airways is losing favor with
its customers. A large portion of this role is performed by the logistics department.
Therefore, BA should have effective staff to guarantee that the proper baggage is
distributed at the proper location.
Question marks
Cargo, Indian and Chinese routes of British airways lie in the Question marks segment in BCG
matrix. British airways have low market share in this segment. This segment requires high
amount of cash to gain high market share.
Recommendations
Over the previous few years, British Airways has earned a significant market share with
little growth. They didn't make any significant investment, like growing their fleet or
their destinations, which turned them into a cash cow. However, BA has lately given
greater attention to their growth goals by making orders for new aircraft and expanding
their regional market. So, in this segment British airways should implement product
development strategy.
Cash cows
Short hauls, UK routes and Ireland routes flight services lie in this segment of BCG matrix.
British airways have large market share, but the market as a whole is declining.
Recommendations
Problems with baggage handling systems at airport have also led to passengers seeing
huge delays. So, British airways should also apply product development strategy for
better baggage handling system.
British Airways should not invest additionally in short hauls and UK routes.
British Airways also implement diversification strategy to sustain in market.
Dogs
In British Airways' BCG matrix, the strategic business unit for open skies is a dog. In this
segment both market share and market growth are low.
Recommendations
The suggested action plan for British Airways is to buy off this strategic business
segment and minimize its losses as much as possible.
• Increasing investment in British Airways is the recommended method of operation in
order to turn it into a cash cow. British Airways will always be profitable if the market is
expanding more in the future.
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University of Management and Technology
Institute of Aviation Studies
The other strategies should also implement in case of loss of open skies services are
retrenchment or liquidation.