Fly Emirates

•Goal:

“To reach on top by excelling at what we do.”

•Mission Statement:

"We exist to deliver the world's best in-flight experience."

•Vission Statement:

“To make civil aviation safe, leading and sustainable.”

•Objectives:

Tangible objectives pertaining to the goals are :

1. Retain and improve frequent business class traveler’s

• market share.

2. Increase market share 40% to 55% by end of 2009

3. Tap low cost carriers market to achieve company’s

return on investment.

4. Promote Dubai’s Tourism activities and introduce

Dubai to the world.

Positioning Statement:

“The Finest in the Sky”

History&Introduction:

•During the mid-1980s, Gulf Air began to cut back its

services to Dubai as it was concerned it was providing

regional feeder flights for other carriers. As a result

Emirates was conceived in March 1985 with backing

from Dubai's royal family and was required to operate

independent of government subsidies.

•Apart from US$10 million in start-up capital

•Byleasing two of its airplanes - Airbus 300 and

Boeing 737 - as well as providing technical and

administrative assistance to the new carrier. Also

Emirates leased a new Boeing 737–300 and an Airbus

300B4-200 both from Pakistan International Airlines

. The airline's first flight, flight EK600, was Dubai–

Karachi on 25 October 1985

United Arab Emirates and operates over 1,990

passenger flights per week, from its hub at Dubai

International Airport, to 157 destinations in 55countries

across 6 continents

The airline ranks amongst the top 10 carriers

worldwide in terms of revenue and passenger

kilometres

Emirates has won numerous awards and is an

industry bellwether for aircraft purchases, purchasing

over 130 aircraft in 2007 alone.

•Structure and employment:

Emirates employed a total of 38,797 staff at the end of

the fiscal year on 31 March 2011.

Of which 10,785 were cabin crew, 2,237 were flight

deck crew, 1,904 were in engineering, and 9,084 were

listed as other

•Services:

1.Cabin:

(i) First Class

(ii) Business Class

(iii) Economy class

2. Cargo:

•Emirates SkyCargo is the air freight division of Emirates. It began

operations in October 1985, the same year Emirates was formed. Since

then it has been the main cargo division of Emirates, and the anchor cargo

airline at Dubai International Airport.

•Emirates SkyCargo operates thirteen dedicated cargo aircraft, with ten on

order.

3. Ground services:

Passengers may check-in between two to 48 hours prior to flight departure.

This may be done over the counter or at the lounge within the airport. Self-

service kiosks are also available at Dubai International Airport, as well as at

certain stations of the Dubai Metro.

•Enviromental Scanning:

1. Internal Enviroment:

2. External Enviroment:

Swot Analysis:

•Strengths:

•Has the advantage of size

•decision to focus on diversified market

•Entering the cargo shipping

•Weaknesses:

•Does not cater a lot of places in US

•Does not cater to middle class & budget traveler

•Not all of diversification and approach have been successful

•Opportunities:

•To develop continuously new generations of more advanced airline andaviation services.

•Budget travelers

•Innovation

•Threats:

•Rival companies are major threats

•Rising fuel costs

•Low cost carriers - Air Arabia, Jazeera Airways.

PEST Analysis

(i) Political:Political situations that affect the airline industry will be mainly wars

and terrorism.

(ii) Economical:One of the factors following the success of any airlines is to have the most sophisticated airports which are facilitated with cutting edge technologies to meet customer’s requirements

(iii) Social:

The population of the world is shooting at high rates. Thus the social factors also increases.

(iv) Technological:New technologies affect this industry in negative and positive manner.

Integration of Marketing Mix:

1. Price:

•Emirates Airline is using the premium pricing strategy, which is to offer a higher price than what other airlines in the market offer

2. Place:

• Emirates Airline has about eleven travel shop branches in the UAE and about 122 branches outside the UAE all around the world that provides superior services

•Emirates Airline has also an online website presented in about nine languages in order to reach all its target segments from different nationalities.

3. Promotion:

For advertising, it has to advertise in newspapers that mostly attract this segment like Gulf news and in cheap magazines such as Ahlan. Billboards are good tool for advertising, they are attractive and people everywhere could see them.

4. Product:

•Emirates is always the first to offer the high-quality, latest technologies and services to their customers.

•Gives travellers the ability to send and receive emails and SMS messages from any class and the first airline to implement TVs in all classes

5. People:

Management of Emirates Airlines are able to promotes the sharing of a commongoal among their employee,hence, make the organization and its team workefficient together. As they work together, they are able to focus on the needs ofthe entire organization which is to sustain their competitive advantage.

6. Process:•Emirates Airlines services includes the following key operating departments such as the First and Business Class Lounges, Special Services like assisting disabled passengers and unaccompanied minors, Customer Relations, Baggage Services, Check-in and Boarding, and the Millennium Airport Hotel (Emirates Wing).

7. Physical Evidence:

•Emirates fly planes release carbon dioxide through fuel burning. However, while flying planes, Emirates wants to make a different by focusing on how to be an ecologically-efficient organization. They use fewer resources and creating less waste and pollution.

TARGETING ANALYSIS

EMIRATES AIRLINES

ELITE CLASS

Foreign tours Business Esteem needs

POSITIONING

CUSTOMER ATTRACTION

Kids free campaign

Sports

Train fares

Partnership

Targeting :Emirates caters to high ranking executives and businessmen belonging to the age group of 30-60 who are looking for luxury and comfort in travel. It serves all customers regardless of nationality

Top Competitors for Emirates:

1.Deutsche Lufthansa AG

2.Air France-KLM S.A.

3.Etihad Airways P.J.S.C.

Segmentation :

•Emirates segments its market into two major categories, the profitable (business travelers) and the unprofitable one. These can be further divided on the basis of the average length of trip, the frequency of trips and the brand loyal customers

•Business class passengers are the most profitable to Emirates and are willing to pay for their luxurious services as price is relatively inelastic for them. Emirates offers these travelers great Wifi services and more room to work and hence they prefer nonstop trips

•Emirates loses out where the economy class travelers are concerned as they are very price elastic and prefer to choose low cost carriers.

Marketing Plan:

1. Marketing Penetration (Improving In-fight Service)

1) Retain and boost market share of Emirate airlines product and services.

2) Protect market dominance of Emirates airlines existing markets.

3) Driving out competitors by restructuring mature market.

4) Enhance usage of existing passengers.

2. Marketing Development (Extending New Routes)

•The objective of Emirates airline is building up Dubai into a popular aviation centre that will finally serve as an important universal long haul hub.

•It provides an alternative to the traditional European airline hubs as Heathrow Airport (London), Charles De Gaulle (Paris) and Schiphol(Amsterdam).

3. Product Development (Private Suite)

•Introducing new services into existing markets implies product development is

strategy which involves the development of skill and requires business to expand

customized services that can apply to current markets.

•Emirates airline has more services for business travelers that is

reason why Emirates airline introduce high quality first class

private lounges to attract business traveler,s.

•The premium class private suit would be fully outfitted with personal storage,

coat cabinet and desk and individual mini bar. Long seat reclines to become fully

horizontal couch and TV wide screen

4. Related Diversification (Low-cost carrier)

•The low cost airline offers lower prices than traditional airline by fascinate

promotion. The low cost has flexibility fare that is one reason why some people

is switching cost to them.

•Emirates Airlines be supposed to slightly spread from current marketing objectives to obtain the low cost airline market share and to retain its customer base of UAE expatriate market

•This can be done launching new subsidiary to cater budget airline market.

The key routes should be high demand and large number of expatriate’s home

country like Egypt, India and Pakistan.

Market Share

Market

Growth

High

Low

High

h

‘Stars’ Emirates Business

Class, First Class

‘?’ Emirates Holidays

Low

‘Cash Cow’ Emirates

economy class

‘Dog’

B.C.G Matrix of Emirates AirLines