SPD4464 Business Marketing

Presented by:Chau Ho Lam (13006367s) Wong Wai Kin (13610687s)Yip Yun Cheong (13609260s) Yim Ho Lun (13613978s)Zhang Kan (13609928s)

About HAECO

STPRM

Marketing Strategy

Airframe Service

Line Service

Engine Service

Component and Avionic

Service

Inventory Technical

Management and Fleet Technical

Management

About HAECO

About HAECO

About HAECO

About HAECO

18 subsidiaries & affiliates

Segmentation

Macro-segmentation

• BusinessTypes

• Large Aircraft CorporationsSize

• HeavyUsage rate

• CentralizedStructure of the procurement function

• Facilitating GoodsService application

• Straight rebuy & Modified rebuyPurchasing situation

STP

Segmentation

Micro-segmentation

key criteri

a

• quality-focus

purchasing strategies

• optimizers

importance of the purchases

• high strategic

STP

Targeting

Concentrated strategy

STP Only targets Airliners / aircraft owners

The service is providing Maintenance, Repair and Overhaul (MRO) for flight

Positioning Experienced High quality aircraft service provider for airlines

• Provide excellent services and make profitRight goal

• complete and high quality aircraft service system rivals are difficult to match

Unique value

proposition

strategic positioning:

STP

Positioning

Competitive Analysis

• Other companies like CASL also provide full range services

• Increasing demand in customized services

• Do not provide service in Europe

• Wide range and high quality service

S W

TO

STP

Broad range of service

Narrow range of service

Less Point of Service More Point of Service

Positioning Map

STP

Relationship Marketing

RM

Relationship with customers(Transactional Exchanges)

Main customers ServicesMRO service on A,B,C-checks.

Technical assistance, maintenance and cabin services.

High quality on-time redelivery.

HAECO

Completed Cathy Pacific A330 hangar inputs.

HAESL

Offer overhaul services on Trent 700 engines.

Taikoo

Supports Trent 700, thrust reverser repair

RM

Web Portal System

Real-time check

Comprehensive range of data

Trace process of repair orders

Relationship with customers(Value-added Exchanges)

1. Web Portal System

RM

747-400 Boeing converted freighter

program

Fire safety induction system &

smoke control system

200 hours of in-flight

testing

2. Additional Flight Testing

Relationship with customers(Value-added Exchanges)

RM

3. Aircraft Lease Return Support• created a special taskforce• be a middleman between airlines

Relationship with customers(Value-added Exchanges)

RM

HAECO

Thai Airways

Strategic alliance

• Strong technical ties with Thai Technical

• Aircraft components of HAECO from HK Bangkok• Thai Airways use component workshop of HAECO

• Obvious cost savings • Eliminate processing time of maintenance

Relationship with customers(Collaborative Exchanges)

RM

Overcome technical

difficulties

Share lease-return checking experience & technical knowledge

Joint problem solving

Relationship with customers(Collaborative Exchanges)

RM

Dunlop Taikoo Taikoo-thrust reversers HAESL-engine parts

Taikoo-Blocker door overhaul

TALSCO-shipping pallets

TALSCO-set landing gear

All electro-mechanical units

Eclectic breaking system

Source: http://www.haeco.com/HAECOGroup/group-companies/dunlop-taikoo.aspx

Relationship with suppliers(Collaborative Exchanges)

RM

Search cost

RiskSocial cost

Takes time and effort to search for alternative maintenance service.

Exists many uncertainty.

Conducts Intensive technique skills.

Switching costsHIGH to

customers

RM

Relationships of marketing mix(s)

Product(Services)

People Physical evidence

Excellence service Awards / certificate

Awards = motivational factors

Satis

fied

peop

le de

liver

s exc

ellen

ce se

rvice

Marketing strategy

Services of HAECO

Sourced from HAECO’s 2013 Annual Report

Marketing strategy

Airframe Service

maintenance checks

cabin reconfiguration

in-flight entertainment system

avionics modification

structural modification

winglet modification

lease-return checks engine services

in-house support

Transit Checks and Certification

Ramp Services

Engine Services

AOG Services and Aircraft

Interior Enhancement Solutions

(ArIES)

Marketing strategy

Engine Service

Rolls-Royce Engines

GE-Aviation Engines

Pratt & Whitney Engines

Component and Avionics Overhaul

Landing Gear Overhaul

Aerostructures Repair

Technical support

Field Service Support

Component and Avionic

Service

Marketing strategy

Inventory Technical Management and

Fleet Technical Management

Inventory management

Component Engineering & Repair Management

24/7 AOG Support

Customization of Aircraft Maintenance

Programme (AMP)

Certificate of Airworthiness Application

Maintenance Planning & Scheduling

Maintenance Control

Marketing strategy

Evaluation on product (Services) strategy

• Criterion:

Facilities Location

Scope of Service

Compare with China Aircraft Services Limited (CASL) and Pan Asia Pacific Aviation Services Limited (PAPAS)

Marketing strategy

Scope of ServiceCompany/

ServicesHAECO CASL PAPAS

Airframe ✓ ✓

Line ✓ ✓ ✓

Engine ✓ ✓

Component & Avionics

✓ ✓

Inventory & fleet technical

management

✓ ✓ ✓

HAECO has competitive advantages over PAPAS but facing high level of rivalry threats from CASL.

Marketing strategy

Facilities LocationCompany/

Facilities location

HAECO CASL PAPAS

ASIA ✓ ✓ ✓

AMERICA ✓

EUROPE

HAECO enjoys competitive advantages as the target customers extends from regional airliners to international airliners.

Marketing strategy

Improvements on product (service) strategy

• Why improve?

Maintain competiveness

Differentiate from

competitors

Marketing strategy

1. Increase the degree of customization to differentiate from CASL

More low cost Airliners

Industry trends: Leasing aircraft

Modification

Specialized unit offers

tailored solution

Marketing strategy

2. Expend the business locational boundaries to maintain competiveness

Penetrate into the Europe market

Invest on overseas facilities

Begin with popular destination: huge demand on MRO services

London

Paris

Frankfurt

Marketing strategy

People of HAECO

Enhance morale

WorkshopsIncrease professionalism

License examStrengthen delights

Health program

• Retain current staff

Marketing strategy

People of HEACO

Recruit new Staff

graduate trainee program

practical training opportunities for

IVE students

aircraft maintenance

mechanics trainee (AMMT) program

Marketing strategy

Evaluation on People strategy

Achieve “Honour of Manpower Developer” from the Employee Retraining Board (ERB)

Marketing strategy

Evaluation on People strategy

Poor working conditionPoor benefit packageCannot attract new bloodAffect the capacity

Marketing strategy

Improvement on People strategy

Organization structure

Strengthen communication

Simplify

Stress and Relaxation workshop

Reinforce team spirit & cohesion force

OrganizeEmployment policy

More beneficial payment package

Higher incentives

Revamp

Marketing strategy

1. Line Maintenance

award

3. Sustainability

award

2. Approval award

Physical evidence Of HAECO

Marketing strategy

• Airframe maintenance : ranked second in the“Top 10 Airframe MROs”• Line maintenance : “Excellent Performance

Award 2012” • Engine overhaul : Rated “gold” under the

Rolls- Royce’s Centre

1. Line maintenance award

Marketing strategy

2. Approval award• HAECO product obtain approval over than 30 Countries• European Aviation Safety agency (“EASA”) & Hong Kong Civil

Aviation Department (“HKCAD”)

Marketing strategy

3. Sustainability award

• A silver medal from CLP Power Hong Kong• Bronze medal at the Hang Seng Pearl River

Delta Environmental• "5 Year+ Caring Company" accreditation

Marketing strategy

Evaluation on Physical evidence strategy

Gain prizes from industry every yearCover widest range of approval Neglect “employee” in sustainable development

Marketing strategy

Improvement onPhysical evidence strategy

• Allocate more resources on internal affairs• Create a balanced work of life• Refine working environment

Marketing strategy