WEBSITE CRITIQUE

“INTERNET AND ELECTRONIC MARKETING”

“SINGAPORE AIRLINES”

Author:

VANEET SOOD

TABLE OF CONTENTS

1. Executive summary 3

2. Purpose of the website 4

3. Website Analysis 4

4. Web business model 7

5. Analysis of market mix 12

6. Analysis of Financial Statistics 16

7. Target market and customer behavior

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8. Customer relations 23

9. Navigation and traffic building 25

10.Comparative analysis 30

11.Suggestions for the website 35

12.Conclusion 36

13.References 37

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EXECUTIVE SUMMARY

Singapore Airlines (SIA) is consistently recognized as the world’s “best” airline. It is regularly voted “best business class”, “best cabin crew service”, “best in-flight food”, “best for punctuality and safety”, “best for business travelers”, “best air cargo carrier” and “Asia’s most admired company (Wirtz and Johnston, 2003). SIA, like other airline companies, is not a just a product based company; rather it is a service based company. This poses a serious challenge internally in terms of being the best in every aspect. Development of the company website has proved a good strategy to stay ahead in market competition and customer personalization.

In terms of e-commerce, SIA has used its website www.singaporeair.com as a direct interface between customers and the company.it can also be reached through search engines like Google and yahoo. The webpage is customized, well explained, simplest way used by SIA to interact with its customers and for B2B purposes.

The purpose of the website is to deliver a unique experience for SIA web users. In the report, Singapore airlines website is analyzed carefully against its appearance, web business model, credibility and persuasion, personalization and traffic building. Its strengths and weaknesses are enlisted and recommendations have been made accordingly from a customer perspective.

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PURPOSE OF THE WEBSITE

With time and advancements in internet, most of the companies like SIA have shifted their business from real to virtual mode. This is done using an internet dependent websites. The official Singapore airlines link is ‘www.singaporeair.com.’ purpose of the website is to reach everybody in any part of the world and making them convenient to plan their journeys and book tickets sitting at home or office with just one click.

WEBSITE ANALYSIS

Reaching the website:

In the modern-day scenario, where things are just a click away, websites play an important role to make business, and to hold business. Singapore airlines have excelled from this lesson. When a layman types in www.singaporeairlines.com, www.singaporeair.com, or fill in Singapore airlines or SIA in Google or yahoo, and click the very first option (which is definitely Singapore airlines), he or she is automatically diverted to company’s webpage. Further, the first page is a universal page, from which you can chose language and country you wish to surf into the website.

Color:

The sky-blue color with white in contrast is self-explanatory, that the company relates to sky. The colors are eye soothing, and give a feeling of goodness and temptation to everybody who loves

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sky. Thus, just the colors make it clear what company is and what customers it targets (Fig 1).

Fig 1. The Singapore airlines webpage. The sky-blue color used delivers the information about the company’s main product. (source: (SIA, 2009) )

Quality vs quantity: The website is a good example of delivering quality over quantity keeping in mind the hectic lives people have these days. SIA realizes that almost everybody logging into the website aims to either book tickets or check prices, therefore, on the very first page (homepage) we will find the flight booking column.

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Again, with this simple approach, SIA has targeted the entire working population. Further, if anybody wants other information, the person can click into the relevant options on the top of the page. You can change your location, surf the web site map, get information about pre-flight services like checking in (which SIA is also providing online) and also about loyalty programs and Kris flyer memberships and promotions. Lastly, some lucrative promotions can also be sighted at the home page, which a user can refer if planning to fly.

Multimedia and upload speed: The website content is plotted in HTML as well as in Flash. Thus, usually no special software download is required to view the website. Also, no plug-in is demanded by the website. Being simple with a bit of animation and graphics, the website is easily accessible by everybody, even if the user is using a weak dialup internet connection. Overall, the website fast, easily uploaded and balanced in terms of graphics.

Availability: The website is available 24*7.

Stickiness factor: SIA has an advantage that its product itself brings in the stickiness factor. Anybody booking air ticket surfs into website for all related information about the travel. To enhance the factor, SIA has provided some interesting data, like ‘before you fly’ option which gives you details about the airport lounges, check in, about Changi Airport in Singapore. Then in ‘Promotion’ option, one can find details about Singapore, boarding, stop over at Singapore and about recent promotions. Thus, for a person who is travelling, like from Australia to LA, one gets keen to know what goes on in Singapore, what if he takes a beak journey via Singapore, does he need to wait in que for check in? How can he get a seat with more leg space? And so on. All these desperate questions are answered by the website and thus a person finds it hard to leave the webpage. According to

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Alexa database, a customer on an average spends about 5.2mins/day on the SIA website (Alexa, 2009).

Ability to deliver the aim: The major aim of the website is to satisfy core customer service through a virtual medium. The focus of the website is to run the core competencies of the company that is its business, using internet as a medium.

WEB BUSINESS MODEL

Singapore airlines, follows a customer centered web business model. Like any other airline industry, he models begins and end with the customer. A rough flowchart of the e-business process followed by all airlines is as shown below (fig 2). The current model is a profit centered model with little customer reference. In such a model, pricing and sales are correlated to generate profits.

According to SIA senior management, customer service is the key of Singapore airlines success. Thus, every effort is being made to provide the best any customer can expect (Wirtz and Johnston, 2003). With such a strategy, it is expected the modification of the profit based web model to be more of customer centered profit based web model. An example of a customer centered e-business model (CCEB) is given in figure 4. The model has been derived using MS Visio2000 software (Jiang and Doukas, 2003).

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Fig 2. Generic Airline e-business model (Source: (Smith et al., 2001))

The CCEB model is in infant mode as, in present scenario, study of the web models is not yet widely flourished. The Diagram in fig 3 shows how sales are generated using data from pricing and booking. In such a model, the emphasis is on generating a global approach to achieve uniformity in prices and services.

On other hand, the CCEB model is entirely customer based. Sales are generated thoroughly from customer satisfaction and loyalty. Customer personalization and e-profiling is the part of the model for customer persuasion and for customer trust and also to get a clear data of number of customers flying through the airlines. This helps in

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solving the most prominent problem in such an industry; the problem of loss faced due to empty or partially loaded flights.

Fig 3. CCEB process model (Jiang and Doukas, 2003).

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Agency business model for SIA:

Much of the company dealings are with agents for ticket sales. In Australia, SIA has contracts with approximately all big and small travel agencies including, Flight Centre, Best and Less, Base Sydney and many other. These agencies incur commissions from SIA, and in replacement these agencies enhance SIA ticket sales. The prices are fixed by SIA (Expedia.com, 2009).

Merchandising model for SIA:

Such a model is seen in business between SIA and online travel sites. Singapore airlines have partnerships with well-known travel sites like Expedia.com, Orbitz.com, Travelocity.com, Priceline.com etc. in such a model, the travel sites get inventory over wholesale tickets from SIA, and then acquire right to fix their own prices (Expedia.com, 2009).

The purpose of the Agency and Merchandising model is to sell maximum seats, and target fully filled flights.

Alliances:

Singapore airlines is one of the members of the Star Alliance, and cover most of its Asian continent travelers. In the Alliance, the company has to share its profits and losses with other members of the alliance. Star alliance has benefitted SIA and other members by building up an image to provide ease of travelling for the passengers travelling in SIA. Membership in this Alliance benefits SIA’s customers because they can accumulate frequent flyer mileage whenever they travel in any of the member’s aircraft.

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Fig 4. The logo for Star Alliance

ANALYSIS OF THE MARKET MIX

Fig 5. The 4P marketing model (Source: http://www.provenmodels.com/files/11a7a7dc5acdcb06f944722a23

b5f9de/four_principles_of_the_mark.gif)

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Product:

The core product of the company is the flights, but to sustain them, the company is more dependent on delivering an efficient customer service. The company website is one of those promises. The company website is not only used to sell tickets, but also to deliver an unforgotten customer service for a person sitting back home and planning to fly with the company.

“As of March 2008, 97% of all tickets issued from the Airline’s sales channels were e-tickets. All Singapore Airlines’ stations in the network are e-ticket enabled. This means Singapore Airlines is on track to achieve 100% e-ticketing by May 2008, ahead of IATA’s global target of 1 June 2008 (SIA, 2007-2008).”

Thus, we see that most of the business for SIA comes from e-business.

Branding:

Singapore airlines as such does not have any web marketing brand name, but due to its reputation, ‘Singaporeair’, which are the keywords for the website, have become its online brand. Moreover, the company has maintained its Singapore Girl brand on its web services as well. “The personalization of the Singapore Airlines brand is the mixed male and female cabin crew, where especially the flight stewardesses commonly referred to as Singapore Girls have become very well-known (Roll, 2008). “Someone logging into the webpage can see a Singapore girl image on both global as well national webpage with a smile, wearing an elegant Malay sarong Kabaya. The

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brand has been well maintained past 32 years of the history of Singapore airlines (Roll, 2008).

Singapore Airlines has maintained its position as one of the best-known and best-performing brands in Asia, and remains one of the few consistent performers in an industry where established brands are struggling to stay alive

Analysis of the “6X brand” factor for SIA:

Fig 6. Analysis of SIA on basis of 6X model. 6X model is used to analyses airline brands on basis of the value delivered by the brand to the customers (Source: (Nigam, 2008) ) .

Promotion:

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The SIA homepage displays all the new and exclusive offers provided by the Singapore airlines. These include cheaper flights between specific rates, special packages and many more. Apart from this, the webpage is equipped with a separate ‘Promotions’ option on the top right corner (fig 7), that links you to all the promotional offers that are available including, Singapore stopovers, local fare deals, events etc. (fig8). Further, special offers are available for Kris flyer members (frequent flyers), then can be viewed on the website.

Fig 7. ‘Promotions’ option on SIA homepage.

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Fig 8. Some recent promotions available through SIA.

Price:

As mentioned previously, Singapore airlines follow a global pricing strategy. This means the prices available on the SIA link will be the same elsewhere. The prices are updated regularly, ensuring fare dealing with the customers. 97 percent ticket business for the company operates through internet. Except for this, one can get the best deals for hotels in Singapore or transit charges for stopovers in Singapore. The prices vary from class to class. Economic class offers cheapest airfares among all classes.

Place:

Singapore airlines have customized its website as per the location user want to search in from. User in Australia can surf into Australian SIA webpage or into American SIA webpage.

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ANALYSIS OF THE FINANIAL STATISTICS

The company website gives access to everybody to observe its financial statement, operating cost, revenues, and other data. Just by clicking onto “Company information” option at base of the webpage, user is directed to other options including, ‘investor relations’ and ‘partners and benefits’ (fig 9). By clicking onto the investor relations, you get access to analyses the company’s performance through its annual, half yearly and quarterly report.

Fig 9. “About the company” page gives you an option to observe the investor relations and the company’s financial statement.

Singapore airlines have been awarded as the best airlines for 2008 (http://www.worldairlineawards.com/). In the same year, the

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company revenues shot up to 6,954 million dollars in the first half of year 2008, from revenue of 6,061 million dollars in the past year. The overall profit hike in the same period was recorded around 36% more than the first half of 2007, which is an outstanding figure for any industry. On annual basis, the profit was 60% more than 2007.

Fig 10. The Financial statistics of Singapore airlines

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Figure 10 shows the cost the cost composition of Singapore airlines for 2007/08 (not as a part of the Star Alliance). Thus, from the diagram we can see that most the expenditure counts on miscellaneous factors. The company has reduced costs in sectors like airport handling as well as on fuel (fig 11). The fuel cost reduction can be predicted due to addition of ‘Airbuses’ in its fleet that use 10% less fuel. Besides, dropping of the US dollar has also contributed to this change.

Fig11. Shows the cost factor for SIA alone for year 2007/08.

SIA has performed outstandingly in increasing its operational profits. This has been made possible by highly efficient team performance and engineering skills, in addition to its innovation in all aspects of the process. Figure 1o shows its extraordinary success in operation management, recording a profit of 61% in year 2007/08(SIA, 2007/2008) .

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Singapore is the market leader in Stock exchanges around the globe. It is registered in Nasdaq, SGX, S&P index (fig. 12) and many others. From the fig11, it is clearly seen that the share market for the company is at a downfall. This can be assumed with respect to the economic meltdown.

Fig12. S&P index for Singapore airlines as reviewed on 15th April, 2009.

If we review at companies Dividends for 2007/08, we see that overall value per share has increased from 35cents from 2007 to 80c in 2008. Thus anybody with company shares seem to have earned profit per share (SIA, 2007/2008).

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TARGET MARKET AND CUSTOMER BEHAVIOUR

As mentioned above, anybody who wants to fly, planning for a vacation or want to have a good time is the potential target for Singapore Airlines. The website has been intelligently design to tempt its target market. The Singapore brand itself has been the choice of the people. Using its Singapore Girl image on the Webpages has allowed the company to generate value out of it, both on line and offline.

The color contrast used in website on one hand proves handy to fetch the sky lovers, while on other hand it sounds soothing for everybody. Moreover, the site has been kept simple without much of the graphics to make it easier for people with dialup and weak internet connections. Besides this, website easy to be deciphered, qualitative than quantitative, thus setting an example of a user-friendly website. Thus, with such a website experience, the company has targeted everybody around the globe, despite of their gender, origin, budget and age.

The SIA website interface for customers and business investors have become really popular means for Business to business as well as business to customer interaction. The website has made it possible for SIA to reach to everybody in any part of the world.

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The most widely faced problem that people face is the discomfort to go to a travel agency and book tickets. It may sometimes take more than one time visit to the agent. SIA website has tried to ease the customer by providing one click ticket booking sitting in your home or office.

The website has made it convenient for everybody to book tickets or get any relevant information regarding airlines and prices. SIA website is based on the fact that everybody on net expects quality, speed, easy accessibility in a website. With a single click, anybody from any part of the world can book tickets; provided he/she has valid payment options and the details provided are authentic. Moreover, the website has plotted all relevant options and promotions on the company homepage. With such an ease, a customer can easily derive the necessary information in no time. Apart from bookings, you can get information regarding tourism in Singapore, hotel deals, online check in. Recently, Singapore airlines have provided an online facility of choosing your desirable seat.

For B2b purposes, website has made available entire company info, finances, future planning, share info and many more. To enhance the customer experience, the company has registered many navigation key names including SIA, Singapore air, Singapore airlines, Airlines Singapore and many more. Thus, even if you forget one, you can get into the website through other available names.

Amazingly, the average length a customer stays on the website is 5.2 minutes/day (Alexa, 2009). Other company usually averages about a couple of minutes to a few seconds.

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CUSTOMER RELATIONS

Usability:

According to Palmer, a good website should fulfil 4 requirements (Hanson and Kalyanam, 2007):

Palmer’s Factors SIA Website response

1. Fast Response TimeMinimum graphics, No plug-in required, easy uploading.

2. Effective navigationSite map, search option. Ticket booking option on homepage.

3. Responsiveness to user goals and desires

Quality over quantity, Singapore Girl brand image on homepage.

4. Higher interactivitySite provides a link between company and customer. Regularly updated, motive of the site well implemented.

Credibility:

The website is reliable, which is assured by the brand it represents. The data on SIA website can be verified either by directly contacting the company or with the airline agent in the city. Website is free from ads except for the company ads. Website is free from any errors, popup or any unwanted elements.

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Persuasion:

Rather than using pictures or animations, company has persuaded its customers by the Singapore girl brand image with a smiling face on the webpage, along with the user friendly, easy to use website.

Personalization:

Singapore airlines have achieved its success based on regular customer feed backs and responding to those feed backs. Such a personalization involves customization in terms customer requirements, suggesting best deals, and regularly interacting with the customers in terms of flight experience and customer enquiry and complaint response. On basis of customer feedbacks and customer to passenger conversion rate, SIA assembles this data and uses it to differentiate its customers.

Mass customization:

SIA holds a reputation of being innovative and solely customer focused airline service. Singapore airlines not only takes customer feed backs from passengers travelling through Singapore airlines plane, but also welcome feedbacks and suggestions from each and every person visiting the website.

The most suitable type of mass customization in which SIA falls under is transparent customization and adaptive customization. In transparent type, SIA makes relevant changes/modification itself, to ensure unforgettable customer experience at all stages from website to travelling through SIA.

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For adaptive customization, SIA welcomes anybody to register in its newsletter at first stage. The registered persons are sent regular news about events, promotions from Singapore airlines. Second stage of such customization is through Kris flyer membership option. Third and final stage is collecting data from passengers in flight and responding them accordingly. This data includes, the company impression and whether the customer will prefer to travel with SIA again (Ayob, 2005).

Kris flyers: These are considered the indirect company stakeholders. Once registering as a member, company offers special discounts, class upgradation and other offers. By doing so they make sure the customer becomes loyal to the company. Also, the membership allows the company to create customer profiles which helps it to target the customers for future flights.

NAVIGATION AND TRAFFIC BUILDING

Direct navigation:

Singapore airlines have taken all the care to ease customers in navigating the website for SIA webpage and navigating through the website. A loyal Singapore airlines customer usually remembers the web link or save it in his bookmarks. The webpage can be directly accessed by typing the following url link “ www.singaporeair.com.” The company has also license over the domain name “www.singaporeairlines.com”, but since the former is the official

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web address, a person typing the later address is automatically directed to the webpage with domain www.singaporeair.com.

Indirect or search engine navigation:

Google, yahoo and msn search engines provide the alternatives route into the website. Singapore airline has registered various keywords like Singaporeair, Singapore airlines, SIA, airline Singapore and many others which directs the person on any of the search engines to the Singapore airlines link. The figure given below(fig. 13) shows the most common key words used on various search engines in relation to Singapore airlines (Alexa, 2009).

Fig13. The most common keywords used for Singapore airlines on net for past month. {Source: www.alexa.com }

In terms of traffic building, the Singapore airlines brand is self-sufficient to pull people towards it. The popularity of the company has made it the top priority on all search engines when fed in the right key words. Figure below shows the results from Google and

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yahoo search engines (fig 14). SIA does not have any banner advertisement except for the ones on its own website. Sources like word of mouth and community websites prove a rich source for the company to generate more and more web traffic.

Fig 14. Google and yahoo search results when searched for Singapore airlines.

SIA web traffic can be analyzed using various online tools. Some of these tools are given below.

1. Lexicon: Facebook has become an important source of spreading word of mouth among people and communities. Facebook has come over with a new tool called Lexicon which keeps the track of the keywords used on Facebook walls. The results showed that SIA has been frequently discussed from 2008 mid till March, 2009 (Facebook, 2009).

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Fig15. Lexicon results for the keyword SIA.

2. Twist: It’s the a web tool provided by “twitter.com .” it gives a record of various key words used in twitter (Twitter, 2008).

Fig16. Twist results for keyword Singapore airlines.

3. Google trends: it’s similar to twist. It keeps key word record for Google search engine (Google, 2008).

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Fig 17. Google trends result for Singapore airlines.

4. AdCenter Keyword Forecast- it’s a Microsoft tool, tracking the keyword use, and generate graphs based on gender and age (Adlabs, 2008).

Fig18: AdCenter keyword forecast for SIA. Shows a sudden peak in April 2007.

5. Alexa: it is the most widely used web index to analyzed web traffic for different websites (Alexa, 2009).

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Fig19. Alexa results for SIA. Gives variety of important data related to the webpage.

COMPARATIVE ANALYSIS

Singapore airlines face a tough head to head competition from other airlines at all levels, including internet. Emirates are one such airline company that competes with SIA for Asian market. By doing a comparative analysis of websites of both companies we can make out where SIA stands stronger and where it is weaker in terms of e-business.

Website navigation:

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Unlike Singapore airlines, Emirates is a bit hard to get linked. This is because only the correct keyword “Emirates” can take you to the website www.emirates.com.

Website attractiveness:

SIA’s light blue shades showed a global approach in targeting customers. On other hand, Emirates website is dusty brown colored (Fig20) (Emirates, 2009). It gives a reflection of Arabic culture. Thus, it can be predicted that Emirates primary target is the Middle East customers. The webpage has only a fewer options on main page, so anybody intending for a simple search needs to waste time exploring the website. The good part of the website is that when anybody searches for a flight, the web results show nearest flights as well in terms of dates and timings, which make it easier for a customer to select from the given list (fig21).

Fig20. An insight of the Emirates home page. (Source: (Emirates, 2009) )

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Fig21. Shows the results when a scheduled trip is entered into flight search. Various other flights are also displayed, making easier for customers to have options.

Web business model:

In addition to merchandising and agency model, Emirates also derive income from its hotel and tourism business (Emirates group). Also, it sponsors events like cricket and football matches.

Comparing the finances, we see that Singapore airlines have incurred more profits than Emirates for 2007/08. The operating profits for Emirates were just 35.5% as compared to 61% for SIA (fig22).

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Fig 22. The financial statistics of Emirates group. (Source: (Emirates, 2009) )

Traffic building:

Comparing Alexa results for Singaporeair and Emirates, we see that on an average, a person stays just 3.5min/day on Emirates website as compared to 5.2min/day for SIA (Alexa, 2009).

Twist results show a tremendous search for SIA, against a nil key word search for Emirates (Twitter, 2008).

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Fig23. Emirates results for twist.

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SUGGESTIONS FOR IMPROVEMENT OF THE WEBSITE

The company website is good enough, but can be made better by a bit of additions.

Firstly, options like cargo and details such as baggage weight should be highlighted on the front page. These are two big needs for a person moving overseas, or for a vacation.

Secondly, everything that demands and it of detail is available in .pdf format. So, if anybody wants to go through the detail, they have to make sure they have adobe. This again poses problems for people logging in from some exclusive internet locations like offices or cyber café.

Thirdly, the company financial statement fails to give any relevant detail about the expenditure on online ticket sales or on website development and maintenance.

Fourthly, like Emirates, SIA can list the closest flight dates to the selected flight date searched on web. This way, person can select from any of the closest dates if his preferred flight is not available.

Lastly, students are one of the biggest customers for SIA; it is expected from SIA to give special discounts and deals for students.

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CONCLUSION

SIA website seems has proven to be good in all analysis. It has been successful in delivering the purpose and generating business for the customers. The website is user friendly, easy to reach and access, with a whole lot of other features for customer benefit. The authenticity of the website is marked by the relevant company data that can be accessed by anybody any time. Thus, the website with a bit of modifications can help in achieving the company target of 100% e-ticket booking rate in coming years and also turn out to engage more and more SIA customers into loyal customers by respecting their expectations.

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References

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Alexa (2009) Movers and Shakers. Alexa Inc., viewed 13thApril 2009, http://www.alexa.com/

Ayob, AM (n.d.) Singapore Airlines limited: Building a culture of service excellence, viewed 5th April 2009, http://mahdzan.com/papers/sia/SINGAPORE_AIRLINES.pdf

Emirates (2009) Emirates Webpage. Emirates group., viewed 13th April 2009, http://www.emirates.com/au/english/

Expedia.com (2009),Reports Record Third Quarter Pro Forma Results, Washington DC, viewed 13th April 2009, http://press.expedia.com/index.php?s=press_releases&item=146

Facebook (2009) Lexicon. Facebook, viewed 13th April 2009, http://www.facebook.com/advertising/?lexicon

Google (2008) Google trends. Google,viewed 13th April 2009, http://www.google.com/trends

Hanson, W. & Kalyanam, K. (2007) Internet marketing and e-commerce, Thousand Oaks., South Western College Publishing.

Jiang, H. & Doukas, L. (2003) Can Customer-Centric E-Business System Achieve Competitive Advantage for Airline Industry? Ausweb 03. Gold Coast, Souther Cross University.

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Nigam, S. (2008) 6 Steps To Building A Swashbuckling Airline Brand. The Red Paper Series, viewed 13thApril 2009, http://www.airlinebrandindex.com./

ROLL, M. (2008) Singapore Airlines - An Excellent Asian Brand. Singapore, viewed 13thApril 2009, http://www.venturerepublic.com/resources/Singapore_Airlines_-_An_Excellent_Asian_Brand.asp.

SIA (2007-2008) SIA annual report 2007-2008. Singapore, viewed 13thApril 2009, http://www.singaporeair.com/saa/en_UK/content/company_info/investor/index.jsp

SIA (2007/2008) SIA GROUP FY2007-08 RESULTS 14 MAY 2008. Singapore, viewed 13thApril 2009, http://www.singaporeair.com/saa/en_UK/content/company_info/investor/index.jsp

SIA (2009) Singapore Airlines Webpage. Singapore Airlines, Singapore, viewed 13th April 2009, http://www.singaporeair.com/saa/en_UK/index.jsp

Smith, B. C., Günther, D. P., Rao, B. V. & Ratlife, R. M. (2001) E-Commerce and Operations Research in Airline Planning, Marketing, and Distribution. Interfaces, 31, 37-55.

Twitter (2008) Twist. Twitter, viewed 13thApril 2009, http://twist.flaptor.com/?tz=10

WIRTZ, J. & JOHNSTON, R. (2003) Singapore Airlines: what it takes to sustain service excellence – a senior management perspective. Managing Service Quality, 13, 10-19.

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