Introduction

Etihad Airways has been a leading global airline since its conception in 2003. The company is based united Arab emirates and is recognized as one of the fastest growing global companies both in size and operations. It is infarct recognized for its growth in commercial aviation both locally and internationally.  The success story at the organization can be traced to the effective marketing strategy adopted in the company.  It is worth understanding that the firm has won several awards such as ‘World Leading Airline’ Award in the year 2009 by the World Travel Awards and the Best Marketing strategy among many more (Cole, 2013). The company’s relentless efforts have enabled it to become one of the fastest growing companies in the history of commercial aviation. In this chapter, we will discuss at length the marketing strategy of the airline and how it has managed its operations over the years.

Product review

Etihad Airways mainly deal with international transportation of people and goods. The airline has a fleet of planes that has enabled smooth transportation of people and goods in various destinations all over the world.  The aviation sector of the airline has three main products offered to their customers and includes; first class, business class or the economy class. In addition, the organization also has a tourism sector that operates through Etihad Holidays. Etihad Crystal cargo deals with cargo transport and logistics (Cole, 2013). Nevertheless, it is wise noting that the business class of international transportation has the largest revenues of 40%. First class and economy also have 20% and 40% in profit revenues respectively. The economy class has the larger market share and thus according to BCG matrix it can be represented by the cash cows. It is also prudent to note that the airline is known to offer superior services to its customers ensuring that they have a wonderful traveling experience.

Competition/ current market position

From the above analysis, it is evident that the transportation sector is the main product offered by the company. On this note, it is prudent to note that the airline faces direct competition from other airlines such as Jet airways, Qatar Airways, Oman Gulf Air and Emirates Airlines among other international firms.  Emirates airlines are considered as the greatest threat to the transportation sector of the airline (Sba.gov, 2015).  The tourism sector also face completion from other service providers such as Star Cruises and Carnival Cruise who to a great extent offer similar services and at cheaper rates. It is on this premises that it is important to understand their market position and act differently to remain competitive.

Market share

This an important consideration that will help the company determine its position and how it fares compared to the competitors. It is important noting that the both the business class and first class of Etihad company has a good market share as compared to the competitors. It is however essential to understand market growth is also a critical consideration in defining a marketing strategy. Nevertheless, Etihad airways are leading in most of the products it offers in the market.

SWOT Analysis

Strengths

• Established market in Abu Dhabi
• Enjoy strong customer loyalty

Weakness

• Face stiff competition from established airlines.

Opportunities

• Improving aviation industry
• Availability of markets outside UAE.

Threats

• Economic downturns may lead to people looking for cheaper alternatives
• Stiff competition especially low cost strategy adopted by Jet star would lead to low profits.

Marketing mix strategies/ future

After understanding the market position, a marketing strategy must be clearly outlined. This implies that both short term and long term objectives of the organizations are clearly outlined.

Short term objectives

• Maintaining customer value throughout
• Increased luxury transport at affordable prices.

Long term objectives

• Profit to increase by between 8-10% annually.
• Increase customer value by over 15% by 2020
• Increase the fleets to exceed other players in the sector by 2030.

Product strategy

The airline must ensure that it has unique products compared to the competitors. Etihad airways is known to segregate its products as first class and business class  thus giving consumers a variety to choose from. Presence of these augmented products gives the company a maximum competitive edge (Cole, 2013). The company is also known to offer additional services such as chauffer services in major airports thus improving its tourism sector. It is also prudent noting that the company is time conscious as it offers 24 hours flight and only half an hour wait as opposed to here hours offered by competitors.

Price strategy

Etihad Airways has also opted to use a pricing strategy that will enable penetration to new markets and increase market share in UAE (Srygley, 2007).   The airline must ensure that its pricing is not too low such that it is considered as a low cost carrier and nor should it be too high and give competitors a cutting edge.

Place strategy

A good marketing strategy is the one that ensure convenience to target customers.  It is on this premises that the airline must ensure booking of flights happens in its main offices as well as other parts with target customers. Use of the company website or employment of more sales agents can serve this purpose.

Promotion

Promotion is critical to any successful marketing strategy. This ensures that good news regarding the products offered by the firm get to target customers. Etihad Airlines has over the years engaged in direct marketing, sales promotion and sponsorship deals.  Through such activities, the company will have a chance to be in contact with potential customers thus gaining desired competitive edge.

Action programs budget and controls

A marketing strategy requires extensive programs, budgeting and controls to realize the organizational objectives. It is imperative ensuring that the strategy is implemented in accordance with the defined time frames and as discussed above. Use of BCG matrix will be of paramount importance to identify regions of high growth associated with increased profits. The matrix will help in establishing which products worth more investment than others (Cole, 2013). For instance, it will be prudent investing in business class, crystal cargo and the economy class. It is also important to have a rough budget estimate to ensure that the marketing strategy objectives are achieved within financial position of the airline. The budget used in marketing should be viable in terms of providing effective and efficient outcomes (Sba.gov, 2015). It is always advisable to utilize a budget where return on investment is assured.

References

Cole, A. (2013). Analysis of the Etihad Airways. Munich: GRIN Verlag GmbH.

Douglas, S., & Craig, C. (2011). Convergence and Divergence: Developing a Semiglobal Marketing Strategy. Journal Of International Marketing, 19(1), 82-101. doi:10.1509/jimk.19.1.82

Sba.gov,. (2015). Developing a Marketing Plan | The U.S. Small Business Administration | SBA.gov. Retrieved 23 August 2015, from https://www.sba.gov/content/developing-marketing-plan

Srygley, R. (2007). :Avian Flight. Oxford Ornithology Series, Volume 14. Q REV BIOL, 82(3), 286-287. doi:10.1086/523167

Stocks, D., Altendorfer, O., & Fachr, A. (2014). Strategische Partnerschaft von Airlines und deren Marketingstrategien. [S.l.: s.n.].

 
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