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Turkish Airlines Marketing Plan (Portfolio) Summer/Winter 2010/11 UK
By Nikola Georgiev Student ID: 07059973
CA3002C Aviation Commercial Planning and Marketing
Tutor: Nicholas Coleman
4.3. Market Development (Extending new routes) 220.127.116.11.3.2.1. References CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . Business Strategy 2.5.1. External Environment -PEST Analysis 3. Conclusion 18.104.22.168. Transit Passengers of Istanbul 4.3. Competitors products 2. Competitive advantage of Turkish Airlines.2.4.3. Values 3. Airline Overview 2. Easyjet 2. Expatriates in Turkey 4. Appendices (Tables and Charts) 7. 3. Marketing programmes 4.4. 3.1. Customer Service 5.3. Competitors Overview and Situation analysis 2.3. Strategic Marketing Focus. Promotion 22.214.171.124. Intended Strategies 4. Place 4.4. British Airways 2.1. Marketing Plan 4.2.5. Internal Environment – SWOT Analysis 126.96.36.199. Market Penetration (Improving In-flight services) 4.6. Load Factor 4. The Competitors 2.1.4. Turkish Tourism and Business segments 188.8.131.52.2. Goals and Objectives 3.5. Market Share Estimates by Class 4.1. Product 4. Price 4.London Metropolitan University Table of Contents: 1. Introduction 2.2.2. Existing Market 184.108.40.206.4.1.Cost reductions 4. Mission 3.2.4. Product Development (First class private suite) 4. Pegasus Airlines 2. Target Market 4. Core competencies 3.2.1.
Introduction A comprehensive marketing plan for Turkish Airlines.1. Today 50. With its fleet of 127 aircraft.” under the direction of the Ministry of Defence. while the rest remain state-owned. Turkish Airlines also have an extensive network of domestic flights. target markets and customer segments is vital to ensure its survival against the existing services provided by its competitors . Airline Overview Turkish Airlines. by providing extensive analysis of overall capacity between the city pairs and analysis of the competition. the airline will continue to build upon its success as it advances towards becoming a global airline and a Turkish brand name recognized around the world. which it passes onto its passengers through high quality service. 5 million passengers and the number of transit passengers have increased by 41. When considering the economical crisis affecting many European Carriers and leading them to decrease their operations. In 1955. Turkey‟s national flag carrier. 2. as measured by Skytrax(1). Turkish Airlines has increased its annual passenger and the Available Seat Kilometer (ASK) by 15% and 11. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . with the shuttle service between Istanbul and the Turkish capital Ankara being particularly well used. product differentiation. Acting on these values. Marketing promotions highlighted in this marketing plan serve to increase market share in the short term while the advertisements seek to increase product and brand awareness in the long term. market share and evaluation of its future marketing activities. in 2009 Turkish Airlines carried 22. 3 % across a network comprised of 145 International and 36 domestic destinations From Istanbul. Pegasus Airlines and Easyjet. Finally. Turkish Airlines operate various onward connections throughout the Middle East and Central Asia. Turkish Airlines is an airline that rapidly implements transformative solutions in support of growth and development. which has covered the airline sector for 18 years.British Airways. particularly focusing on its services. its products for the UK market and competitive advantage.9% of the company shares are public. The task undertaken begins with overview of the company. 2. Turkish Airlines became a Star Alliance member enabling the company to offer even more destination through the code share flights of its partners.London Metropolitan University 1. it was restructured into “Turkish Airlines”. Manchester and Birmingham to Istanbul routes. These actions are being performed in order to better understand where Turkish Airlines should focus its marketing campaign and how it should differentiate its product. A clear measure of Turkish Airline‟s rise is its status as one of the world‟s 4-star airlines. In 2008. Business Strategy Turkish Airlines has pursued a strategy focused on growth and development for many years and is now one of world‟s fastest rising airlines. Turkish Airlines now has its sights set on a 5-star rating. the report will be concluded with an overall summary of the company situation. was founded in Ankara on 20 May 1933 as “State Airlines Administration. The objective of this marketing plan is to further develop Turkish Airlines market share in summer 2010 and winter 2010/11 period through marketing programs and initiatives. 25% of the company was sold via an SPO under a privatisation programme in 2005. Since April 2008.3% respectively. Turkish Airlines has kept its position ranked as one of the fastest-growing airlines among European Carriers in terms of capacity and traffic growth. Constantly seeking innovation. followed by an in-depth analysis of the current situation on the London. The report also looks at the airline internal strengths and weaknesses through SWOT analysis and identifies the airline external operating environment through PEST analysis.
London Stansted. as Manchester (the 2 nd largest airport after Heathrow) and Birmingham. Another advantage of Turkish Airlines is that the company serve the route to Istanbul through regional airports in the UK. it also operates flights to Istanbul from other airports such as London Gatwick and London Stansted. the company remains very stable and its market share is estimated to be 54% of the total market (Reuters 09). Although BA is a direct threat to Turkish Airlines. Pegasus Airlines serving London Stansted – Istanbul Sabiha Gokcen (1 flight daily) and Easyjet serving London Gatwick – Istanbul Sabiha Gokcen (1 flight daily) (2). Despite there are other airlines servicing London – Istanbul route. Never the less. targeting local communities and businesses on a wider spectrum. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .3. Turkish Airlines is the only company serving airports as London Gatwick.4. the latter possess the advantage of servicing different airports around UK. Turkish Airlines main competitor is British Airways – as a full service airline providing connection from main-to-main airport. Manchester and Birmingham in addition to its main London Heathrow base. Although Turkish Airlines compete with a very strong positioned and well known operator as BA. Competitors Overview and Situation analysis Turkish Airlines competes with three main airlines on the route London – Istanbul. Table 1 From Birmingham International London Gatwick London Heathrow London Stansted Manchester Source: Turkish Airlines To Istanbul Ataturk International Istanbul Ataturk International Istanbul Ataturk International Istanbul Sabiha-Gokcen Istanbul Ataturk International Flights Per Day 1 2 3/5 2 2 2. Table 1 below shows the current flight schedule of Turkish Airlines from UK to Istanbul.2.London Metropolitan University 2. such as Pegasus Airlines and Easyjet. whilst Pegasus Airlines and Easyjet are LCC executing flights from secondary airports to Istanbul Sabiha Gokcen – airport located further away from Istanbul in the Asian side. The Competitors Competitors for Turkish Airlines are classified as direct and non-direct threat. Existing Market Turkish Airlines is one of the major operators connecting directly UK with Turkey (and beyond) from London .Heathrow through its major hub in Istanbul – Ataturk Airport. These are: British Airways that execute flights from London Heathrow to Istanbul Ataturk (2-3 flights daily). 2. Turkish Airlines main competitor remains British Airways. Based on the above information.
BA‟s main advantage on the route IST-LHR is the onward connections they provide to the rest of the world from their operating hub LHR or through its One World airline partners. Flights frequencies are another advantage that boosts passengers flying the airline to increase enormously.4. Therefore their product and marketing strategy differs from the one of Turkish Airlines. They provide the economy (leisure traveller) product along with the upper economy and business class experience. 2. Its strong position in the UK market is well defined. Flying Turkish Airlines is an experience of its own. Pegasus Airlines Pegasus Airlines is a LCC servicing London Stansted – Istanbul Sabiha Gokcen Airport. etc. enabling the company to increase its market share and passenger network. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .4. They also operate 2-3 flights daily feeding their extensive routes worldwide. as low cost carriers have well defined product structure mainly targeting the leisure market. Their flights are operated either from/or to secondary airports which are no attractive to wider group of passengers (especially business). Competitors products Pegasus Airlines and Easyjet.4. always associated with the Turkish hospitality – experience of comfort. British Airways is a full service airline that provide similar product to Turkish Airlines and therefore is considered as the main competitor. Competitive advantage of Turkish Airlines. The airline is not classified as a main threat to Turkish Airlines services as it operates from secondary airports and its product has a low value compared to the full service of Turkish Airlines. Turkish Airlines competitive advantage in UK is based on its flight operations from three London airports and two regional operations . Its product has a low value compared to the full service of Turkish Airlines.London Metropolitan University 2. British Airways British Airways is the main competitor of Turkish Airlines on the route LHR – IST. One advantage of this carrier is the fact that it has extensive route connections in regional Turkey.Istanbul Sabiha Gokcen Airport. quality pre-boarding and onboard services and great customer service.).5. It is a full service airline – the national carrier of Great Britain. 2. Easyjet Easyjet is a Low Cost carrier servicing London Gatwick . paid snacks and baggage allowance. The most important factor separating Turkish Airlines from its competitors is its success in maintaining reliability. 2.1.4. Regional connections from its main hub in Istanbul. The airline is better positioned with flight services within mainland Europe and has no regional connections within Turkey. BA serves more than 680 destinations (3) around the world some of which on code share bases with One World partner airlines. speed and timeliness without compromising service quality.Manchester and Birmingham. 2.4. The airline is not classified as a main threat to Turkish Airlines services. Their product value refers to the low cost model with fewer services on board -product that can mainly be directed to travellers on a budget (no seat allocation. enables Turkish Airlines to be one of the most desirable airlines. as well as more than 145 onward connections to the Middle and Far East and Asian countries(and further 940 destinations with its code share partners). even though it operates from the 2nd largest airport in London – Gatwick.4.2.3.
London Metropolitan University The onboard product combining economy service focused to the leisure passengers. Another major goal for the company is to be the bridge between the Asia and European markets through their Istanbul hub. 3. such as dedicated check-in points. This goal will be achieved by strong focus on transit passengers. service quality and competitiveness while maintaining its identity of the flag carrier of the Republic of Turkey. reliability. Goals and Objectives Turkish Airlines main goal is to become the most preferred operator on flights to Turkey (and beyond) for both leisure and business travellers. The main objective of the marketing plan for Turkish Airlines is to increase the generated revenue in the business segment in order to secure the financial sustainability and future growth of the company and its premium product in the UK market. Each segment of the market will be targeted to increase Turkish Airlines sales and improve the airlines load factors. thanks to its strict compliance with flight safety. secondly by further identifying the available market from London and the rest of UK to Istanbul and finally targeting the potential market for additional leisure and business travel on the route. 3. This will primarily be achieved in three stages. exclusive security gates and effortless passport control at low fares assign the airline as one of the most preferred among different group of passengers. Strategic Marketing Focus The strategic marketing plan for 2010/11 is focusing on promoting Turkish Airlines as the most favourable airline in the UK by empowering its brand name and creating better awareness of the airline website and its products amongst the British public. local Turkish communities and businesses. product line.com for bookings to reduce cost Promote first class product and onward flights from London to the rest of the world via Istanbul Time period Summer 2010/winter 2010/11 By the start of Summer 2010 During Summer 2010 By the start of Summer 2010 During Summer 2010/Winter 10/11 Throughout the whole period Throughout the whole period CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .1. 3. together with the unique business passengers‟ product. Table 2 below summarises the marketing objectives: Table 2 Objective Increase revenue in business segment by 15% Increase market share by 4% to 58% Increase market share to 62.2. providing services. Mission To become a preferred leading European air carrier with global network coverage. firstly by defining the market to narrow the market focus to consumers and businesses that are qualified to or are already users of business class air travel.4% Increase load factor from 68% to 72% Further increase of load factor by 5% to 77% Promote thy.
3.public.4. e-customer care.London Metropolitan University 3. 3. but also was awarded 4-star quality assurance by Skytrax. sales. It is an important milestone in the company's history as the company joined one of the most prestigious airline alliances in the world .the world's biggest airline marketing partnership. Turkish Airlines took its place among the giants of the world‟s aviation sector. population of 75 million.5. e-services . customer service and ground operations. the rest remain state-owned . Core competencies Over the past five years. Turkish Airlines is today a 4-star airline with a fleet of 130 aircraft flying to 145 destinations around the world. marketing. Growing UK population and increasing demand for travel products . As the 20th Star Alliance member. Turkish Airlines acts with the awareness of being the flag carrier of Turkey. Technological Turkey & UK New fleet . Turkish Airlines quality and safety have received global exposure through the Star Alliance broad network. e-ticketing . Values With flight safety and customer service quality as its two indispensable values.PEST Analysis* Political Turkey 50. relatively large geographical area (780. Summing up the company experiences. * Please refer to Appendix 1 for detailed PEST Analysis CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . UK Possible political instability that could worsen the relations between the 2 countries . Economical Turkey dynamic economy. Sociological Turkey unique growth opportunity.Star Alliance . having completed an array o f membership steps in areas ranging from information technology infrastructure. External Environment . Turkish Airlines has shown a tremendous development by becoming one of the fastest growing airlines in the world. UK Economic downturn can result in decline of air travel – particularly for business traffic.9% of the company shares . leading to sharp increases in passenger numbers.3. strong political/governmental backup.000 sq km). UK Huge presence of Turkish community . In addition. Another important value that the airline tries to maintain on a regular basis is value for money – cheap tickets with no compromises on services provided. passengers can benefit from more than 940 destinations on Star alliance partners network. In 2009 Turkish Airlines celebrated its 75th anniversary. increasing disposable income among its population.
A popular tourism destination. UK Extend coverage into Scotland. 3 London airports + 2 regional services. Drawing passengers into onward flights from Istanbul hub. THREATS Turkey LCCs increasing their presence . UK Market adaptation product. UK Substantial market share. Substantial cost advantage over rivals.London Metropolitan University 3. Star Alliance membership and close relationship with Lufthansa. *Please refer to Appendix 1 for detailed SWOT Analysis CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . National Flag carrier – European Capital of Culture 2010 Airline. Great flight frequency. Benefiting from liberalisation policies. Business customers focus. British Airways product differentiation. WEAKNESSESS Turkey Higher risk organic growth strategy. UK LCCs increasing their presence. Internal Environment – SWOT Analysis* STRENGTHS Turkey Expanding home market economy and favourable demographic. Great product and customer services. Currency shifts may inhibit profitability. Rising market share. Massive fleet growth to fund. Strategic geographic position.6. British Airways coverage expansion. OPPORTUNITIES Turkey A growing market. despite the economic crisis. Under-utilising the potential of a strong alliance. Product differentiation. Brand/ specific product awareness.
The product will also be positioned to this target market as the one with the highest levels of service on board the aircraft. significantly higher levels of comfort offered by the seats and a higher degree of luxury compared to the competition. The main need of this type of customers is the corporate discount available in return for volume.1. The product will be positioned for these customers by providing a FFP and a business class fare that is significantly lower than most traditional fares (the two main needs of business travellers according to surveys). Distinct marketing techniques will be used to create a competitively distinctive place for the product and the Turkish Airlines brand in the minds of the targeted consumers.1. The following table represents the market share estimate s by passengers‟ class for flights from London (3 airports). The market segmentations strategy will focus on attracting three different types of passengers although the overall product offering in each case will be virtually identical on service.1. The secondary target market for the airline is the small business and independent business travellers who typically fly from Heathrow to Istanbul but also from the industrial cities – Manchester and Birmingham. The final target market for the airline is the luxury travel market that exists from London and Manchester to Istanbul. 4. Manchester and Birmingham (in total). Target Market Market segmentation will allow Turkish Airlines to concentrate its resources in markets where its competitive advantage is at its greatest and hence its returns are highest. These customers are generally uninterested in the frequency demanded by business travellers. The product will be marketed and positioned to these customers as a „first class service at business class fares’. Market Share Estimates by Class The leisure passengers are the main income generator for Turkish Airlines. Deutsche bank. PwC. whilst business passengers remain at a lower level. The company product will be positioned to these customers to provide significant cost savings over competitors. Both London and Istanbul are cities with many multinational companies and businesses. The primary target market for the airline is corporate business air travel. Delloit. Marketing Plan 4. Corporate travellers that Turkish Airlines should be targeting include. they will vary on price. which create a vast market for corporate travel. Table 3 Leisure Business Source: Reuters 54% 32% CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . Shell and several other prominent corporations with links in Istanbul and London who fly business class and has significant volume of business travel between the pair cities.London Metropolitan University 4.
(Figures calculated from Table 3 and Table 4) 4.1. the marketing objective is to further increase load factors by 5% over the summer period to 77% (so the airline will be operating with very healthy.London Metropolitan University 4. extends both on the European (Thrace) and on the Asian (Anatolia) side of the Bosphorus and is thereby the only metropolis in the world which is situated on two continents. Istanbul is also Turkey's largest industrial centre.4%.1 million tourists visited Turkey (TurkStat).3. Through increased marketing and focused advertising campaigns. most of whom entered the country through the airports and seaports of Istanbul CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . In 2009 a total of 23. capacity (ASK) and load factor in % from 2005 – Sep 2009. Turkish Tourism and Business segments Istanbul as Turkey's cultural and financial centre. Load Factor The following table 4 shows Turkish Airlines traffic (RPK). profitable load factors) and thus increasing Turkish Airlines market share to 62. It is one of the most important tourism centres in Turkey. the marketing plan main objective will be to increase the airlines ‟ average load factors to around 72% towards the start of the summer period. The opening of specific markets in the city during the 1980s further strengthened the city's economic status. giving the airline a substantial 58% market share of the total business and leisure capacity offered on the London to Istanbul route.2.1. catering to both vacationers and visiting professionals. There are thousands of hotels and other tourist oriented businesses in the city. It employs approximately 20% of Turkey's industrial labour and contributes 38% of Turkey's industrial workspace. The city has always been the centre of the country's economic life because of its location as an international junction of land and sea trade routes. Table 4 Source: Centre for Asia Pacific Aviation and Turkish Airlines Based on these figures and the growth on previous average load factors of 68%.
4. cultural. concerts and jazz legends can be found often playing to a full house.1. 4. Intended Strategies The marketing strategy serves as a foundation for the marketing plan and sets out the strategic approach that the plan will apply in reaching the marketing objectives set. their latest findings do show that now around 235.706. In 2008 companies based in Istanbul made exports worth $41.614 transit passengers at Istanbul Ataturk Airport in 2009. Turkish Airlines main goal for 2010 is to create a bridge between Europe and the East through its Istanbul hub. Turkish Airlines have the opportunity of a bigger exposure to transiting passengers.4. that could choose the airline for their onward travel or in near future. The Istanbul International Film Festival is one of the most important film festivals in Europe. which brings in and out a lot of business traffic. via its unique product. such as catering that influence the Turkish tradition (cuisine) and hospitality.000 Britons moved to live in Turkey in the last couple of years as the appeal of the nation grows and becomes more widely appreciated. The airline marketing strategy therefore has to be designed to promote the airlines superior service and product at a price lower than the competitor s‟ inferior product to attract consumers.5. Transit Passengers of Istanbul There were 2. advanced in-flight technology and world class cuisine are all marketing strategies that Turkish Airlines competitors embrace to capture premium travellers. Promotions like companion free offers. and generates 21. Istanbul generates 55% of Turkey's trade and 45% of the country's wholesale trade. as a single bad experience on Turkish Airlines will drive customers back to British Airways (and other airlines). reveal that there has been a steady increase in the numbers of expats going to live in Turkey year by year.4 billion and imports worth $69.1. Market Penetration (Improving In-flight services) Improving in-flight services is a major move that could separate Turkish Airlines from its competitors. which corresponded to 56. Further to that. and specific product tailored for the business travellers focusing on their needs and wants. world famous orchestras. Expatriates in Turkey The latest statistics from TurkStat. The city is very familiar to expats that have chosen it for their new home. and commercial activities. Istanbul have been selected to be the European capital of culture for 2010.2. would attract more passengers looking for enjoyable and influential travel experience. 4.4% compared to the preceding year. the Turkish Statistics Institute. During seasonal festivals.6% and 60. many multinational companies have branches.2% of Turkey's gross national product. chorale ensembles.8 billion.2% of Turkey's exports and imports in that year (TurkStat). CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . Whilst exact TurkStat figures relating to the number of expats coming from UK are not available. This is an increase of 6.London Metropolitan University and Antalya. Entertainment and communication in-flight systems are major advantage of Turkish Airlines. ballet and theatre continue throughout the year. activities like opera. 4. has established a relationship with the consumer its goal is to retain those customers by enhancing their experience through increased customer service and higher level of quality offered. While world famous pop stars fill stadiums. Providing a different in-flight product. while the Istanbul Biennial is another major event of fine arts. which gives further opportunities for Turkish Airlines as the flag carrier and official ambassador of the city as a travel destination. It is also one of the world's major conference destinations and is an increasingly popular choice for the world's leading international associations. The city is becoming increasingly colourful in terms of its rich social. As the main carrier at Ataturk Airport. Once the airline. focusing on all transit passengers.2.1.
e-customer services and e-technology will be a major objective in achieving cost cuts. This promotion will be targeted at leisure travellers as it is assumed that a majority of business travellers book their seats close to the required date of departure as they are required to leave on short notice. Advanced Booking Price Promotions The main aim of the price promotions will be to reduce the number of empty seats on the aircraft and hence to maximise revenue.2. to be offered the third one free. This will enable the company to draw huge amount of traffic. Thus. 4. The free ticket will be restricted and must be used within a period of one month. July and August when target load factors are less than 60%. however they must still yield a profit for the service provided. Market Development (Extending new routes) A great opportunity for Turkish Airlines.3.London Metropolitan University 4.2. Focusing on online bookings. the benefit would be given to consumers in the way of cheaper tickets or special discounts. Three for Two The main aim of this promotion is to generate additional revenue while not overbooking the aircraft or undermining the passengers who have not utilised this promotion. knowing that the Scottish travel market is a lucrative opportunity. and loyalty from existing customers beyond that which can be provided by advertising alone. or enable a single consumer who purchases two tickets within a month. Turkish Airlines price promotion will provide significantly low prices for customers who are able to book an anytime seat over one calendar month in advance.3. Product Development (First class private suite) Turkish Airlines is one of the very few airlines in the world that implemented private suite on its long haul fleet. 4.2. June. This section of the report proposes several marketing promotions for the airline to increase their sales. This is a unique product focused towards the needs of superior customers and awareness of this product in the UK market will increase the passenger demand for the onward flights of Turkish Airlines from Istanbul. general trends of leisure travellers. Marketing programmes Turkish Airlines marketing promotions will be designed to enable the airline to exceed its marketing objectives by increasing interest in the product and the willingness of consumers to buy it.4. as the largest carrier for Turkey in the UK market is to expand its presence and extend the route network into Scotland. This promotion could enable three consumers to travel at once for the price of two. Cost reductions Cost reductions can be achieved by reducing the office premises and ground staff the airline use. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . 4. which would most likely be the case if a buy one get one free promotion were offered. brand awareness. general trend of a business class consumer. Assuming that the existing target load factors are sufficient to generate significant profit additional seats which otherwise would be empty could be sold at significantly reduced prices.2. This promotion will be designed to run in May. This promotion is based on a consumer or group of consumers purchasing two full fare return tickets and receiving a third one free.
as well as genuine gestures such as Istanbul sightseeing cards and chauffeur services to the existing economy and business class passengers. the airline will offer triple points on all bookings made on-line. The product focused towards business travellers allows them to hold in flight meetings in comfort and order meals and services to suit their timetable and specific needs. Manchester. Although business class travel is not a new product.1. comfort and in-flight services.com will be offered free Istanbul sightseeing tour cards or similar organised tours. who would normally fly with LCC like Easyjet or Pegasus (leisure passengers) or British Airways (business passengers). Birmingham and Istanbul. Turkish Airlines Triple Points Frequent Flyer Program Miles&Smiles is already a rewarding and generous scheme where passengers can redeem rewards and take advantage of many benefits. The airline method of providing its services is what differentiates its product and allows it to offer vast benefits. In April. May Period Jun Jul Aug Sep Oct Nov Dec CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . June and Oct. 1 or 2 free nights at luxury hotels will be offered. Turkish Airlines product has improved to the highest level possible. Turkish Airlines product must be positioned to the target market as one that meets and exceeds the needs of both leisure and business class travellers.thy. This is designed to increase load factors above target load factors for these months but also to reduce distribution costs of tickets. to compete with its major competitors mainly based on price differentiation. For all business passengers on onward flights from Istanbul. through increased product innovation and quality. seats. Summary of Marketing Programs Marketing Promotion Apr Advanced Booking Price Promotion Three for Two Gifts for On-line Bookings Frequent Flyer Triple Points 4. such as space.London Metropolitan University Promotional Items for On-line Bookings All consumers who book flights in August through to December directly through www.3. Product Turkish Airlines product is providing economy and business class travel between London.
and are consistent with the other variables in the marketing mix.Price Table 5 below shows the online published fares of THY versus BA. Turkish Airlines pricing strategies support the products positioning. London. 4.000 for a single advert in a prime time slot (4). make a profit. Place A Multi-level marketing strategy will be employed to distribute the product.2. 4. Other methods of creating awareness of the airline product will include sales promotions and presence at business trade shows. as the low price does not act as a substitute for lack of product quality.V. through negotiations the airline can achieve great results with its corporate clients. Based on competitor pricing customers would be willing to buy at Turkish Airlines prices. Promotion Turkish Airlines promotional strategy will be carried out with the target customer in mind preventing the waste of time and money on ineffective promotional activities such as TV ads. While Turkish Airlines pricing allows the company to achieve its financial goals.3. the product will not be supported by extensive marketing campaigns such as T.3. Business Trade Shows Turkish Airlines will have a comprehensive premier presence at Business Travel Trade at Excel. The type of promotions and advertising used will affect the price.4. adverts.London Metropolitan University 4.3.3. That is a combination of direct sales and indirect sales through the internet. as well as social websites like Facebook. it undercuts the realities of the marketplace for the product and service offered by its competitor operating out of London Heathrow. however in order to keep prices low. Prior to the event the trade show will provide significant media exposure that will feature Turkish Airlines brand. However.e. etc. Business trade shows and corporate travel agencies. Pricing is influenced by the distribution channels used particularly in selling to corporate customers.37% Turkish £95 (15 days £380 Airlines advanced) British £150 (30 days £540 Airways advanced) Table 5 comparison of airline pricing strategies Mon 10 to Fri 14 May 2010 The main pricing strategy of the company is to maintain price leadership. promoting the airlines directly to the target audiences. The trade show will provide the airline with on site marketing and promotional exposure. i. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . Twitter.3% 70. which can cost up to £130. Airline Economy Fares Business Fares % cheaper than British Airways Economy Business 63.
Customer care prior and after travelling with Turkish Airlines will be another focus that will enable the airline to become very customer orientated and friendly. Direct Sales to Secretaries and PA’s Often PA‟s and secretaries are requ ired to book flights for managers. 4.London Metropolitan University Internet In order to attract UK leisure and business travellers. This allows for cheap and efficient distribution costs and reaches a wide consumer base. These direct sales will allow for a greater degree of product differentiation to be established in the minds of corporations and allow Turkish Airlines to demonstrate and highlight the benefits of its products compared to its competitors. special discounts and incentives for regular passengers. Direct Sales to Corporations In order to attract large corporations and medium sized businesses. The website allows customers to make reservations for flights and provides purchase and payment capabilities. The first class service will appeal to small to medium business managers who can afford to fly with British Airways. the airline will manage a team who will build relations with corporations. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .3. To do this. Outdoor Adverts Important part of Turkish Airlines marketing strategy will be focused on advertising with leading corporate and travel magazines. Also direct sales and product recommendation to corporations which currently fly with British Airways will increase the airline share out of the total market share. bus and underground posters. Customer Service Building substantial customer relationship will be the primary objective of Turkish Airlines.5. Business and Travel Magazines. Corporate Travel Agents This has the advantage of offering customers a distribution channel they may prefer in making their reservation. Turkish Airlines must target these secretaries with direct mail so that they are aware of the Turkish Airlines product. etc. Turkish Airlines will market and make direct sales via its web site. as well as outdoor advertising. Turkish Airlines will directly contact the travel departments of corporations and businesses in UK with links in Turkey. That will be achieved through extensive communication with its current customers. as well as comprehensive information on offers. Social websites like Facebook and Twitter could create brand awareness and can be used as a marketing tool for promotions of the airline. such as billboards.
Based on all these actions. The advantage of a local and highly identifiable market is that media selections can be limited in scope. Word count: 4712 words CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . by popularising the official website of the airline. Marketing will be media generated to the business and corporate accounts with combined media and direct sales focused to the leisure market. Conclusion Turkish Airlines market presence will be achieved by relying on the strategy of identifying and serving well both leisure and business market. as they have acted as a key generator of sales for other airlines. Turkish Airlines can meet its challenges and act in order to achieve its set goals and objectives. etc. The most effective media is expected to be outdoor billboards and posters on buses and underground. as well as to maintain its leadership position in the UK market. Presence in the popular social websites would be beneficial in order to increase brand awareness and can be used as powerful marketing tool for advertising promotions.London Metropolitan University 5. The marketing programs section of this report highlights the set of co-ordinated actions that will be implemented to meet the airlines marketing objectives and to attract existing business class travellers from competitors. Reservations will be centralised and cost effective.
centreforaviation.turkishairlines.goturkey. (2009).skyscanner.com (Accessed on 12 Apr 2010) Emirates Airline Strategies: www.net (Accessed on 18 Apr 2010) (3) www.com (Accessed on 18 Apr 2010) (4) www.com/article/idUKLDE63D176201004 (Accessed on 14 Apr 2010) Istanbul – Ataturk Airport: www.flypegasus. USA Doganis R. “The Airline Business”. 2 nd edition.org (Accessed on 13 Apr 2010) Turkey Visitors site: www.com (Accessed on 12 Apr 2010) Centre for Aviation: http://www.en.ba.reuters. 4 th edition. Routledge Publishing.com (Accessed on 12 Apr 2010) EasyJet: www.com (Accessed on 13 Apr 2010) European Culture Capital: www.turkstat.uk (Accessed on 10 Apr 2010) http://uk. “Flying off course – Airline economics and marketing”.com/ (Accessed on 21 Apr 2010) Turkey Tourism Authority: www. Ashgate Publishing Ltd.skytrax.tourismturkey.easyjet. USA Web sites: Turkish Airlines: www.com (Accessed on 12 Apr 2010) (2) www. “Airline Marketing and Management”.com (Accessed on 12 Apr 2010) Pegasus Airlines: www.gov.tr (Accessed on 17 Apr 2010) CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .. (2004).emirates.London Metropolitan University References: Textbooks: Shaw S.com (Accessed on 13 Apr 2010) (1) www.org (Accessed on 13 Apr 2010) Turk Statistic Institute: www.ataturkairport. UK Doganis R.chewonthis.istanbul2010. HarperCollins Academic. 5 th edition. (2006).org.
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