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Transcript of Textron Aviation.pptx
Marketing the Citation Longitude for
C-Suite Executives
By: Rob Bruns, Emily Haskins, Quynh Jacobs, Matt Mrozek, and Anthony Tucker
The QuestionWhat is the best strategy to reach C- level executives and corporate flight departments who are interested in purchasing an aircraft in this segment (cost of $20-30M)?
The LongitudeSuper-midsize business jet
$20 to $30 million price range
12 seat max capacity
3,400 nm range (NY to LA is 2472 nm)
Customization available for customer satisfaction
First flight completed October 8, 2016
First design to combine Cessna and Hawker Beechcraft concepts
Comparable CompetitionBombardier- Challenger 350
Starting at $26.67 million
9 seat max capacity
3100 nm range
Gulfstream- G280
Starting at $25 million
10 seat max capacity
3600 nm range
Embraer Legacy 500
Starting at $20 million
12 seat max capacity
3125 nm range
Misconception of private ownershipIssue: Many believe that purchasing a private jet is too expensive.
Response: Convey to our target audience how cost of purchasing and operating a private plane outweighs using commercial flights, charter flights, or utilizing fractional ownership on a business jet.
Create brand awareness in the segmentIssue: In the midsize jet segment, Textron Aviation is a fairly new entrant. We do not have the brand recognition that our primary competitors have with regards to luxury jets. In other words, Gulfstream and Bombardier are likely the two brands that come to mind when considering purchasing a private jet.
Response: Emphasize Textron Aviation’s success and expertise within other segments of the industry. Explain the Citation Longitude’s features/specs and how they compare to the more recognizable brands in the segment.
Embraer SWOTStrengths-Strong brand image; regularly sources the U.S. military-17% of deliveries in the business jet market, with only 7 models-Although a Brazilian company, has a large manufacturing and engineering facilities in Florida (can claim American-made)
Weaknesses-Not yet a competitor in the ultra-long-range, large cabin jet market-Lacks the R&D pipeline, government subsidization, and university recruitment of Bombardier, Gulfstream, and Textron-Forced to adopt voluntary layoff program
Embraer SWOTOpportunities-Respond to Textron’s 4,500nm range Cessna Citation Hemisphere-International expansion; build a customer network and service centers beyond Brazil and U.S.
Threats-As a Brazilian company, is more likely to be hurt by currency exchange rates than Canadian or U.S. companies-In discussion with US Dept of Justice regarding allegations of violating Foreign Corrupt Practices Act
Bombardier SWOTStrengths-In-house financing-Well-known brand with a strong marketing position-Service centers in 27 countries-Aircraft training, situation simulator available
Weaknesses-Still not the premiere name in this market-Too diversified- only aerospace brand to also compete in the rail industry-Small profit margins forced a cutback of production of popular existing models and development of a new jet on hold
Bombardier SWOTOpportunities-Current Canadian government is heavily courting Bombardier to invest upwards of $50 million (Canada) for a research consortium (supersonic jets); the Quebec provincial government has recently followed through on a $1 billion (US) commitment
Threats-Cost overruns due to delays on C-Series (commercial jets with range between 3,000nm and 6,000nm) (Feb 2015)-Cash flow issues, is relying on loans and shares to keep it afloat until the C-series hits the market (Feb 2015)-Brazil (Embraer) threatening to file a challenge at the WTO regarding government bailout of Bombardier (July 2016)
Gulfstream SWOTStrengths-Highly respected brand name in the domestic market-Strong relationship with top engineering schools-Has not suffered downward pressure on prices affecting other business jet producers
Gulfstream SWOTWeaknesses-Only 3 international service centers (Brazil, UK, and China); 8 U.S. service centers; compared to Textron’s industry-leading 21-30% of Gulfstream’s 1Q deliveries were to the Middle East, a highly volatile region that cannot be relied on for long term, sustained sales-Pre-owned inventory is rising, particularly the G650 (range of 7,000 nm), which has doubled in pre-owned inventory in the past year
Gulfstream SWOTOpportunities-Develop new jet models that succeed off the Gulfstream brand-Customers report wanting the speed and technology of the G650, but at a lower price and range capacity-Expand to markets outside of North AmericaThreats-Tepid demand in energy-dependent/emerging markets-Growing competition and lowering profitability
Typical Private Jet Audience1.Fortune 1000 companies (100+ million annually)
2.Wealthy individuals (30+ million net worth)
3.Companies or individuals that frequently fly (120+ flight hours)
What C-Suite Executives are Looking forContent- strong data, concise points and a vision for the future
Network- building specific networking contacts
Publish Frequently- looking at reputable sources for purchases
Highly Digital- everything accessible on their mobile devices
Immediate Value- positive results
Our Specific Target AudienceTop 100 law firms by revenue
Range from 300 million to 3 billion dollars
Reality of Law Firms Clients want cheaper legal bills
Issues accounting for billing- ex. Time spent traveling or working on the plane (by minute)
Everything is digital- Digital Briefs and Memos via email
“Travel is quite common; lawyers must visit out-of-town clients and attend distant depositions, hearings, trials, site inspections, board meetings, conferences and other events.” - The Balance
“Companies that make their own employees fly coach also expect their lawyers to do the same.”- WSJ
Advantages of Private JetsFlexible schedule so they can fly any time of day
Increased efficiency and less time than commercial flights
Flexible locations so you can get closer to your exact destination (5000 compared to 500)"Features like WiFi are very popular, and we provide our Clarity fibre optic based system which gives the passengers full connectivity to the internet, moving maps, and trip metrics like altitude and speed."- GQ Magazine interview with Ashley Namihas, Cessna's regional sales director for northern Europe
Advantages of Private JetsTax benefits for using private jet
Privacy, for meetings etc.
Multiple color options and seating arrangements
Specific Advantages for Law FirmsFrom the standpoint of an average firm, the ratio of travel expenses to total revenue lies around 0.6%
For a law firm within the segment we are targeting, revenues start at around $300 million. For a firm making this much, the anticipated travel expense would be around $1.8 million per year
With the purchase of a longitude business jet, it would only take a little over 10 years of use (minus maintenance costs) to be beneficial to the firm
Where are they flying?
ABA Techshow Expo ABA TECHSHOW Expo- March 16-17, 2017 - Chicago, IL
Costs: booking early- $850 a ticket (assuming booking early)
Send about 4 people to make connections at this show ($2000 room/board)
Stipend for potential networking dinners/cocktail hours: $3500
total : ~$9500
Legal Marketing Technology ConferenceLegal Marketing Technology Conference- October 2017 in San Francisco, CA
Focuses on adopting new technologies to attract/better serve clientsTerabyte Sponsor:Cost: $4,750 West/$4,250 Midwest.Registrations: 4.Exhibit Area: Premium placement.Logo: In "Terabyte" section of: advertising, communications, signage, intro slide show, on LMA website with link, promotional video, on passport to prizes.Program: Full page ad on front/back cover of programVIP Dinner: 2 admissions.Premium promotion: Select one complimentary add-on from the list below.Attendee List: One week before conference and after the conference.
Demographics
Legal Marketing Tech. conference4 marketers ($2000 room/board)
TED talk style presentation
“How flying privately will help enhance your legal career”
Exhibit Table
Run 5 Demos: $2000 per demo
Stipend for potential networking dinners/cocktail hours: $3500
Send Tru Simulation pod with salesman ~$50000
Total Cost: ~$69750
Football Tailgates November 4th: Harvard/Columbia game at ColumbiaTailgate costs- $20,000
Raffle with 3 demo flights
November 18th: Harvard/Yale game at YaleTailgate- $20,000
Raffle with 3 demo flights
(Bonus: attract students and alumni)
Monthly Contact PlanCold Calling- C suite executives at major law firms
Direct mail printing ads to top 100 law firms- $25 per mailing, $2500 semi-annually (March and September of each year), Total Cost: $10,000
Digital ad campaign- $3000 per ad per month, 10 websites
Run ads popular publications
WSJ: 1 year, ½ page, $137,595
Illinois, Texas, Washington D.C., California, and New York state BAR association publications ($3000 for a full page 3 times a year, for 5 states, 2 years: $30000)
Why Textron- Our PitchMore deliveries than any of its competitors in the first halves of 2015 and 2016
Several high-profile brands under common management (Cessna, Beechcraft, Hawker)
Due to name-recognition, these brands perform very well in the domestic market
Cessna and Beechcraft together account for more than ½ of all general aviation aircraft currently flying
In-house financing available
Why Textron- Our PitchIndustry’s largest global service network
Citation Jets (Cessna) are world’s best selling jets
Well-funded and supported R&D capabilities
TA has posted strong, stable financial performances since acquiring its subsidiary brands
Existing sales and distribution network
Highly skilled and valued workforce
BudgetBreakdown of $400K
Left with $1115 remaining
Future Marketing TacticsCreating a club for all c suite level executives
Offering private flying lessons through cessna.org and cessnaflyer.org
Leveraging status as leading aircraft manufacturer - industry expertise
Add Tru simulation as part of package of buying the plane (keeps it in house)
International- expanding to attract international law firms
Ex. London Law Expo
Questions?
Works Citedhttps://www.flightglobal.com/news/articles/citation-longitude-completes-first-flight-430170/https://www.entrepreneur.com/article/243125http://blog.hubspot.com/sales/5-keys-to-successfully-selling-to-fortune-500-companies#sm.00008ceadnxdodddqg51ihw2680d6http://jetcraft.com/outlook/Jetcraft-10-Year-Market-Forecast-2016.pdfhttp://www.gq-magazine.co.uk/article/private-jet-buyers-guidehttp://www.investopedia.com/articles/wealth-management/032516/time-move-business-class-private-jet-charter.asphttp://www.wsj.com/articles/SB10001424052970203400604578070611725856952 http://www.businessinsider.com/why-lawyers-are-unhappy-at-work-2013-8 https://www.thebalance.com/so-you-want-to-become-a-lawyer-2164536 http://www.americanbar.org/content/dam/aba/publications/solosez/billfortravel_2005_07.authcheckdam.pdf http://www.atticusonline.com/wp-content/uploads/SampleBudget.pdf
Works Citedhttp://www.techshow.com/https://www.isba.org/http://www.marketingprofs.com/articles/2015/27672/five-proven-elements-of-b2b-c-suite-marketinghttp://tampabayblog.dupontregistry.com/http://www.forbes.com/sites/kenrapoza/2013/03/21/kansas-airplane-maker-beechcraft-sues-u-s-air-force/#5b16b4e618fd https://www.flightglobal.com/news/articles/ebace-embraer-caps-16-year-run-with-1000th-deliver-424532/http://business.financialpost.com/news/transportation/federal-liberals-signal-desire-to-invest-in-bombardier-but-dont-indicate-dollar-amount?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FP_TopStories+%28Financial+Post+-+Top+Stories%29
http://business.financialpost.com/news/transportation/bombardier-inc-the-top-5-problems-that-need-to-be-fixed
]https://www.ft.com/content/ca329a12-214e-11e5-aa5a-398b2169cf79https://www.ft.com/content/ca329a12-214e-11e5-aa5a-398b2169cf79