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BY DEBJIT SAHA MKT+IB-2009-11 ROLL NO -1999/09040040
SURYADATTA INSTITUTE OF MANAGEMENT & MASS COMMUNICATION BAVDHAN PUNE-21 MAHARASTRA YEAR OF SUBMISSION ± 2010
It is my proud privilege to express deep sense of gratitude regards an appreciation to my guide Prof.G. Pherwni, for his invaluable guidance, deep rooted interest, inspiration and continuous encouragement on making the case study report on Singapore Airlines which help me to learn about the concept of ³Various Marketing Strategy´ takes place in an Airline Industry.
Finally, I am grateful and thankful to all of them who have directly or indirectly helped me during this project.
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Mr. Debjit Saha, a student of Suryadatta Institute of Management and Mass Communication (SIMMC), Pune, Maharashtra has done his project report on ³Singapore Airlines´ as a part of his academic course in PGDM, (MKT+IB) under the guidance of Prof. Gautam Pherwani (Faculty of Marketing). I also certify that Mr. Debjit Saha has successfully completed his project on Singapore Airlines and his performance was satisfactory.
Prof.G.Pherwani SIMMC Pune
we have made many commitments to the arts and education. VISION:Singapore Airlines has a responsibility not only to be an excellent company. serving primarily the South East Asian region. we've also made a strong commitment to preserving the environment . Singapore Airlines was in a different position than most other airlines at the time. There were no domestic routes to serve it was forced to immediately start competing with international airlines for routes. Singapore separated from Malaysia. and attracting a new customer base. In 1965. . Unlike most state-owned entities. especially in the boardroom. With that aim in mind. With this goal in mind.INTRODUCTION Singapore Airlines (SIA) began in 1947 as Malayan (later Malaysian) Airlines in a joint venture between the Malaysian and Singapore governments. Singapore Airlines was born in 1972. Singapore Airlines was subject to heavy competition from the onset and this tough start created a driving spirit to compete and also a dedication to branding. and the health and welfare of our country's citizens. getting access to airports. securing flight slots and landing rights. and later the two governments agreed to set up separate airlines. and those in countries we fly to. but also to be an excellent citizen of the world by enhancing the lives of the people we touch. to our communities.and our world for future generations.
MISSION:Singapore Airlines mission statement is ´we are a global company dedicated to providing air transportation services of the highest quality and to earning good returns to shareholder. With that aim in mind we have many commitments to the arts and education to our communities and the health and welfare of our country·s citizen . . we have also made a strong commitment to preserving the environment ² and our world for future generations.µ CORE VALUES:THEIR SIX CORE VALUES:y y y y y Pursuit of Happiness Safety Customer First Concern for Staff Integrity y Team Work GOALS:Singapore Airlines has a responsibility not only to be an excellent company.With this goal in mind. but also to be an excellent citizen of the world by enhancing the lives of the people we touch.
air catering. no tentative plan has been announced to date. and humbled by the tremendous support we've received. It is ranked 27 in Fortune Magazine. Although Singapore Airlines has evaluated the divestment opportunity. Major companies in Singapore Airlines Group include: . There have recently been suggestions to divest SIA Engineering Company and Singapore Airport Terminal Services.5% in a joint venture. our achievements have been recognized around the world. Singapore Aircraft Leasing Enterprise. SIA sold all its equity share of 35. Singapore airlines have won fourteen times The Asia·s best Airline award. to the Bank of China for US$980m on 15 December 2006. aircraft leasing.AWARDS AND ACHIEVEMENTS Since Singapore Airlines first took flight. aviation engineering. Minister Mentor Lee Kuan Yew. voiced his opinion in December 2005 that Singapore Airlines should divest these two companies to focus on its core business of air transportation. 32 associated companies. and tour operations. We're proud of how far we've come. including ground handling. and two joint venture companies in the financial year ending 31 March 2007. It has also restructured itself by hiving off operational units as fully-owned subsidiaries to maintain its core business as a passenger airline. The Singapore Airlines Group comprised 25 subsidiary companies. STRUCTURE OF SINGAPORE AIRLINES Singapore Airlines has diversified into related industries and sectors. for one. two of SIA's largest subsidiaries.
Taj SATS Air Catering. SIA Engineering Company Limited.9% Subsidiary Joint Venture Flight school Catering Singapore India 100% 50% . Subsidiary Engine overhaul Singapore 41% Cargo airline Singapore 100% Holding company Singapore 81.9% SilkAir (Singapore) Private Limited. Singapore Flying College Private Limited. Singapore Airlines Cargo Subsidiary Private Limited.Company International Engine Component Overhaul Private Limited. Singapore Airport Terminal Services Limited. Type Principal activities Aircraft overhaul Engineering Group's Incorporated Equity in Shareholding Singapore 41% Joint venture Subsidiary Singapore 81. Subsidiary Airline Singapore 100% Joint venture Singapore Aero Engine Services Private Limited.
ALLAINCE OF SINGAPORE AIRLINES Singapore airlines is a member of STAR ALLIANCE. all airlines must comply with the highest industry standards of customer service. . In order to become members. security and technical infrastructure.
Years ago. In keeping with its policy of maintaining a young fleet. the Boeing 777s were called "Jubilee" and the Airbus A340-500s were named "Leadership". "Celestar" for the 17 Airbus A340-300s. Airbus A340. "Big Top" for the 14 Boeing 747-300s. Names for airliners previously flown by the airline include: "Superbus" for the 8 Airbus A300s. The Boeing customer code for Singapore Airline is 7x7-x12. The total number of aircrafts of Singapore airlines is as follows: . Boeing 747 and Boeing 777. Airbus A380.FLEETS Singapore Airlines operates a wide-body aircraft fleet from five aircraft families: Airbus A330. Singapore Airlines has never painted an aircraft without its tail livery. the airline named its fleet according to aircraft type. Even special liveries such as the Tropical Mega top and the Star Alliance livery still retain the signature stylized bird on their vertical stabilizers. Several of these names were pulled officially from the mid-2000s under then CEO Chew Choon Seng. which stands at an average of 6 years 7 months as at 24 January 2010. it renews its fleet frequently. "Super B" for the 23 Boeing 747-200s. No official name has since been accorded to the newer A380s which joined the fleet in 2007. The Boeing 747-400s were called "Megatop".
AIRCRAFTS Airbus A330-300 Airbus A340-500 Airbus A380-800 Boeing 747-400 Boeing 777-200ER Boeing 777-300 Boeing 777-300ER TOTAL 19 5 11 7 36 12 19 More over Singapore airlines have ordered 20 Airbus A350 and 20 Boeing 787 . .
It claims to be "The World's Most Awarded Airline". Sydney. the most recent award being World's Best Cabin Staff at the 2010 World Airlines Awards.42 cm) wide when armrests are down) and a 23 in . In the 29th annual Zagat survey by US pollsters in November 2007. Paris. The product is designed by French luxury yacht interior designer Jean-Jacques Coste and consists of separate compartments with walls and doors 1. London. The A380 flies to Hong Kong. IN-FLIGHT SERVICES A) SINGAPORE AIRLINES SUITES:- Singapore Airlines Suites is a class available only on the Airbus A380.SERVICES OF SINGAPORE AIRLINES Singapore Airlines have received numerous awards for the standard of service it provides. SIA was placed first in both premium and economy classes while additionally. upholstered by Poltrona Frau of Italy.5 m high. The leather seat.9 cm) wide (with armrests up and 23 in (58. is 35 in (88. Tokyo and Zurich. Melbourne.
42 cm) LCD TV screen is mounted on the front wall.(58. with several other components of the suite lowering to accommodate the mattress. The 78 in (198. Windows are built into the doors and blinds offer privacy.12 cm) bed is separate from the seat and folds out from the back wall. . Suites located in the center can form a double bed after the privacy blinds between them are retracted into the ceiling.
Singapore Airlines offers World Gourmet Cuisine in all three classes. respectively. Business and first class passengers may also choose to use the "Book the Cook" service on some flights. such as the Kyo-Kaiseki. where specific dishes may be selected in advance from a more extensive C) FLIGHT ENTERTAINMENT SYSTEM AND COMMUNICATION:Singapore Airlines' in-flight entertainment system. B747-400 and Boeing 777- . and Shahi Thali meals available for first class passengers on flights to Japan. KrisWorld.B) CUISINE:A meal in Economy class.SIA has also introduced a Popular Local Fare culinary programme offering local favourites to passengers in all classes flying from selected major destinations. on a flight from Los Angeles to Tokyo. China and India. Shi Quan Shi Mei. was introduced in 1997. Regional dishes are often served on their respective flights.
music. using their new eX2 system. games. The new Kris World is available on A380. A340-500 (equipped with Business Class only) and Boeing 777-300ER. live text news feeds. A330300. and interactive. In March 2005. SIA has offered free language lessons in 22 languages and. SIA introduced the Connexion by Boeing in-flight Internet service. GROUND SERVICES:- . The service ended in December 2006 when Connexion was ceased by Boeing. In-seat AC power port. audio and Nintendo games in all classes. From October 2005. Built-in office software. based on the StarOffice Productivity Suite for use with the USB port. A range of movies. and the system was extended to offer live TV in June. SIA announced that Panasonic Avionics Corporation has been selected to create the new Kris World. starting December 2005. First Class and Business Class receive active noise-cancelling headphones. Passengers flying Singapore Airlines Suites. programs . y y y y Widescreen LCD TV with 1280 x 768 resolution.200ER use the Wiseman 3000 system which offers on-demand movies. TV.
Alternatively. This may be done over the counter or at the lounge within the airport (for first and business class passengers). He designed a special version of the Malay sarong kebaya as the uniform which later became one of the most recognized signatures of the airline. MARKETING STRATEGY 1. Self-service kiosks are also available at Singapore Changi Airport. The personalization of the Singapore Airlines brand is the mixed male and female cabin crew. they may check-in through the Internet or by short message service. First class passengers also get a dedicated lane at Changi Airport where staff will personally welcome and escort them. A very designated and visual . It is one of the important factor for the success of Singapore Airlines.Passengers may check-in between two to 48 hours prior to flight departure. Passengers on short trips may also check-in on their return flight upon departure from the city of origin. Online printing of boarding passes is available through Internet check-in. where especially the flight stewardesses commonly referred to as Singapore Girls have become very well-known. DIFFERENTIATION:The different thing about the Singapore airlines is the Singapore girl which is there to serve you. SIA engaged French haute-couture designer Pierre Balmain at the inauguration of the airline in 1972.
Singapore Airlines also runs one of the most comprehensive and rigorous training programs for cabin and flight crew in the industry to make sure the SIA brand experience is fully and consistently delivered. The Singapore Girl strategy turned out to be a very powerful idea and has become a successful brand icon with an almost mythical status and aura around her. The icon has become so strong that Madame Tussaud's Museum in London started to display the Singapore Girl in 1994 as the first commercial figure ever. The Singapore Girl encapsulates Asian values and hospitality. elegant and serene. This has allowed Singapore Airlines to be highly selective in the recruiting process for talent which has added further to the strength of the brand icon and the myth around it. and could be described as caring. THE SINGAPORE GIRL . warm. The social status of the Singapore Girl has also reached near-celebrity in Asia.part of the entire brand experience. It is a brilliant personification of SIA's commitment to service and quality excellence. gentle.
B) PRICE:Its prices for economy class are affordable. Moreover it has done various advertisement in TV. SEGMENTATION:- . They are the brand ambassadors of their company. It does not keep any aircraft which is older than 2years.A) PLACE:- Singapore airlines is available for all the five continent as well as it goes to 35 countries. 2. internet etc. It changes its aircraft in every 2 years. C) PROMOTION:The Singapore girl is itself a promotion for Singapore airlines. D) PRODUCT:The Singapore airlines have most advanced and new air crafts in there kitty. Thus Singapore airlines has a wide coverage. newspaper . But have expensive business class and first class.
with its subsidiary SilkAir. Bases for segmentation with Singapore Airlines: y Geographic ² SIA·s customers are located globally with varying wants and needs or behaviours and the organisation attempts to exploit this by providing airline services to major cities/ routes evidenced by SIA flying to 65 destinations in 35 countries on five continents. Once the market has been segmented. connects Singapore to many international destinations in the region. The objective is to help determine marketing strategies and realistic marketing objectives by understanding customer trends and buyer behaviours. Segmentation combined with the GE Matrix can also provide some useful insights for targeting segments and finding gaps or attractive segments that could be matched against SIA·s business strengths. After the organisation has identified and selected its target market. SIA·s strong presence in the Southeast Asian region.Market segmentation is the grouping of customers and characterising them in a relevant manner to ensure that the product or service is aimed at the right consumer (or customer). SIA can pursue all or a number of segments with a different offer for each through differentiated/niche marketing that creates and maintains value for the targeted segments Examples where SIA uses these types of segmentation are provided for each of the general bases for segmentation summarised below. frequent flights between Bangkok and Tokyo. The airline has also established and captured major markets in its Kangaroo Route. flying international traffic into and out of Australia and since 2005. SIA can segment geographically in an . the next stage for SIA is to decide how it wants to position itself within that chosen segment.
Demographics ² segmenting on the basis of customer factual characteristics such as age. For example. in return for consumer loyalty to the airline. Psychographic ² attempts to capture what is driving the customer·s behaviour. Tiger Airways. Business and Executive Economy) to meet the product needs and wants of people. SIA have positioned to be part of this target market with their stake in the carrier. Consumer behaviour is however complex and dynamic because . attitudes and lifestyle aspirations of each segment. gender. BUYER BEHAVIOUR:With the level of competitiveness in the airline industry. In addition. personalities. an understanding of buyer behaviour makes marketing strategy development and value creation easier. The corporate market tends to be a frequent flyer that could gain benefits from SIA·s Frequent Flyer program (KrisFlyer and PPS Club). such as values. the Low-Cost Airlines have attracted a market that have a simple need to reach their destination without the ´extrasµ. buyer readiness and commitment. SIA employs tiered membership to provide status preferences to consumers. as evidenced by its proposed hub in North America through Vancouver.y y y attempt to gain extended market share on transpacific routes from Australia to the United States. SIA could build on from this by looking at them in terms of the other major segmentation variables using multiple approaches to achieve a more complete consumer profile. SIA provides variations of cabin classes (First. Behavioural ² is segmenting the market based on observable issues on consumer behaviour when consuming the products. income etc. Characteristics include frequency of consumption.
lifestyle. Factors that influence it include a mix of social. motivation and beliefs and attitudes to name a few. personal. SIA·s understanding of this could enable them to develop more successful marketing mix strategies.different products are bought differently and as a result of different thinking. Complex buyer behaviour ² requires marketer to provide more information and reassurance to a customer. education. an option with their Low-Cost Airline. in-flight entertainment. SIA along . access to service providers via the internet enables buying decisions that involve low risk to be compared more directly with competitors. SIA maintains this through their consistent delivery of quality service in all cabin classes leaving consumers with high satisfaction levels. These days. flight destinations and even for budget-conscious customers. environmental. Variety-seeking buyer behaviour ² requires marketers to provide a lot of options within their range so it reduces the likelihood of the customer switching to another provider. psychological. cultural. occupation. SIA provides a variety of options in cabin classes. Tiger Airways. Dissonance-reducing buyer behaviour ² requires marketer not to provide any reason not to buy the product and maintain consumer satisfaction. 2. This is probably more prevalent in B2B transactions with SIA. Henry Asael in Kotler summarised the four different buyer behaviours that require different responses from marketers: 1. catering. 4. The frequent flyer program and lounge services further add value to their level of satisfaction. Habitual buying behaviour ² requires the marketer to encourage as many people as possible to trial their products so as to be included in their habitual choice sets. 3. For example.
SIA·s positioning strategy uses Singapore Girl as a central ingredient in marketing its image. Upon a customer experiencing services from SIA. This provides invaluable insight on how the service and/or product provided value for the customer as well as how they chose it. SIA can now position a product/service within that market. managing regional flights to secondary cities with smaller capacity requirements. An understanding of market positioning enables SIA to create positioning strategies that result in an offer being seen by consumers as attractive. as part of their business needs. 3) MARKET POSITIONING:After segmenting a market and then targeting a consumer (based on an understanding of their buying behaviour). The corporate sector. Develop a new product offer that meets the needs of the segment. is perhaps the most consistent and habitual with flight bookings. or 2. filling a gap in the market. it is equally important to understand how the customer is satisfied by the service and/or product offered. Market research can be of assistance here.with SilkAir has established a strong presence in the Asian market. Market positioning is about how SIA wants consumers to perceive their products and services in relation to their competitors. SIA·s options are to: 1. and providing the organisation with some competitive advantage. Singapore Girl broke that . Pursue the segment with an offer based on a current product.
food. Tiger Airways· positioning is also very clear ² it is a pure low-cost carrier. comfort and pricing. SWOT ANALYSIS OF SINGAPORE AIRLINES 1). STRENGTH:- . customers got a sensory/emotional experience of air travel with SIA·s commitment to service and quality excellence. the stronger the message will be perceived. The more senses the brand appeals to. At the other spectrum of the market.branding image of traditional marketing communications focusing on cabin design. It pursued a segment with a low-cost offer and positioned itself close to existing competitors like Jet Star. doing well in market penetration and turnover against its competitors. and Virgin Blue. so consumers can make a direct comparison when they purchase. Personified through the girls. It is operating successfully within Australia.
SIA had about 60% of the cabin crew as females. This image was carefully nurtured as it represented the brand of SIA. This gained a better appreciation for that segment. SIA was able to outperform in posting profits. HIGH QUALITY SERVICE :- has always been frontier in providing high quality services to its customers which attracted a large number of flyers to SIA. y Introduced automated check-in system on certain flights. Taking advantage of labor law. It y Introduced electronic ticketing through websites. y Online ticketing was rolled out at all destinations in its network. y Provided top of the line business equipments such as computers. comfortable and hospitable service. Apart from emphasized aspects of passenger handling.SIA has been setting a good record on operational performance and profitability. EMPLOYEE TRAINING :- . SIA paid great attention in the selection process and training of the candidates applying for the jobs. SINGAPORE GIRL IMAGE :- SIA The Singapore Girl Image represented caring. Even in economic downturn in 1990. fax services and a stock ticker. these candidates also spent extensive periods of the training program in homes for aged. social etiquettes and grooming. y Silver Kris Lounge for first and business class people offering peace and tranquility in the hustle and bustle of the airport.
innovative entertainment programs in the cabins then became the norm of the major air carriers. It would have to develop based on its own resources. before starting its service in Australia offered the opportunity to participate in venture but SIA turned down that opportunity relying on Air New Zealand deal which went in loss. the SIA·s share in Air New Zealand dropped dramatically and SIA lost about $157 million. The deals which SIA expected to be fruitful turned out sour. The company operated its own flying college with eight flight simulators. The choice of meals in economic class.SIA had pilots from over 50 countries. Also the 49% ownership deal with Virgin Atlantic which cost SIA $1. All flight personnel were required to go through biennial proficiency checks. SIA has always provided the best of its service to its customers in the best possible lowest price.6 billion was 40% of its value. Also the Government of Singapore declared that although SIA is a national carrier. it won·t receive any subsidies or protection from the government. 2) WEAKNESS:SOUR DEALS :- SIA was somehow not able to form successful partnerships. As New Zealand Government put money into the company. Virgin Blue. SIA spent 14 times as much as other airlines on per employee training program. . The complement of cabin crew was chosen through a very rigorous process. STRATEGY OF DIFFERENTIATION:- SIA has always been keen in developing innovative options to attract customers.
SIA carried about 19 million passenger all of which were international flyers. The profit of the low cost-operating airlines is basically based on the cost savings in in-flight services. FUTURE PROSPECTS OF AIR HUBBING IN SINGAPORE:- According to developed projections by ¶Boeing· air freight traffic is expected to grow in Asia-Pacific region during 1993 and 2014 at a rate of 5. If this hampers the brand image of SIA. it can start with a different name and/or brand. Although company operates in different segments.3% to 7. steps must be taken by Singapore Government and different segments of the air freight industry to take advantage of new developments. UNBALANCED MODEL:- In addition to airline operations.INTERNATIONAL FLIGHTS :- Singapore Airlines doesn·t offer domestic flights. 3) OPPORTUNITIES:ENTER INTO LOW COST-OPERATING AIRLINE:- SIA can definitely think of entering the low cost-operating airline service.9% annually. high load factor. SIA can earn a significant amount of revenue from there. the main revenue comes from airline operations. etc. 100% of total transported passenger fall under international segment. . SIA is also handling airport terminal services and engineering services. higher fleet utilization. Even though Singapore·s geographical location does compare less favorably with cities like Hong Kong. As of 2009.
RISING FUEL PRICES:- Due to global rise in oil prices.6 These rising fuel prices may have immediate impact on the company·s margins making the operating expenses high and having lowered sales. . and Japanese yen have a substantial impact on the revenue streams of SIA. Euros.6 2008 6. Operating Cost Fuel ($/ATK) 2000 4.7 2009 5.5 2010 6. Currency rate fluctuations of Australian Dollar. The unbelievably low air fairs for short distances. The Fuel operating cost for Singapore International Airlines for 4 years in $/ATK is shown below table. SIA·s revenue is dominated by foreign currencies exposing its margin to the threat of volatility due to currency rate changes. Even though these carriers do not offer quality in-flight services. FOREIGN CURRENCY RATES:- Since SIA·s 100% customer base is international. the aviation fuel prices have gone up substantially.4) THREATS:LOW COST OPERATING AIRLINES:- Low cost operating airlines definitely pose a great threat to SIA. the business model works great and can attract most of the consumers towards it.
This is a political barrier for Singapore airline. What goods and services does a government want to provide. POLITICAL FACTOR: This refers to government policy such as the degree of intervention in the economy. dealing a heavy blow to the Indian government's privatization programmed. The Singapore Airlines offer to buy a 24 percent stake in China Eastern Airlines for 7. taxation changes. will be added to make a PEST analysis. Sometimes two additional factors. economic growth. SOCIAL FACTORS: .8 million) appeared in trouble Wednesday after a major shareholder criticized the deal as unfair. To what extent does it believe in finance firms such as Singapore Airlines has withdrawn its bid for a stake in Air India. economic. but these themes can easily be subsumed in the others. inflation and exchange rates. environmental and legal.PEST ANALYSIS OF SINGAPORE AIRLINES The PEST analysis is one of them that are merely a framework that categorizes environmental influences as political.2 billion Hong Kong dollars (US$923. ECONOMIC FACTORS: These include interest rates. social and technological forces.
Singapore Airlines has accepted ´full responsibilityµ for the crash. which makes the competitive advantage for Singapore airline. In addition to providing the world's widest first and Business Class seats and a technologically advanced seat in Economy Class. The airline has offered $400. Another 81 passengers were injured. The death toll has risen to 82 people with the death of a survivor in hospital. Organization must have-to concern about the new upcoming technology.Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. some of which are directly linked to cost-saving measures by airlines and airport authorities. Singapore Airlines is the first and only airline to install a productivity suite for the benefit of its passengers who can now continue to work after boarding the plane without having to power up their laptops. Authorities blamed ´pilot errorµ for the accident. TECHNOLOGICAL FACTORS: New technologies create new products and new processes. But facts have already begun to emerge that point to a number of other causes. This accident makes societal effect on Singapore airline. saying it was obviously a case of ´pilot errorµ. In the year 2002 there was a fatal crash of a Singapore Airlines flight SQ006 at Taipei's Chiang Kai-Shek International Airport.000 in compensation to the relatives of each of the dead and announced it will meet the medical expenses of the injured and discuss compensation with them. .
PERCEPTUAL MAPPING It is a tool through which the companies know how their product or services are perceived by the consumer. The perceptual map of Singapore airlines is as follows: .
It also has 65 destination in 35 countries. Thus they should concentrate on the domestic part also.1 airline. Singapore airlines does not have the domestic flyers.CONCLUSION Thus Singapore airlines is a company having strong market position. Because of all these efforts Singapore airlines have become the Asia·s no. And also it should increase its range in order to reach other parts of the world. Moreover they have 110+ planes in the kitty. . making them to reach the major corners of the world.
4.com www.com www.com www.BIBLIOGRAPHY 1. 2. 3. www.starallaince.scribd.singaporeairlines.google.com .