Marketing Communication

Singapore Airlines

Psychology Service
Shella 54120100039
Jensen 54120100054
Veronica Bajra Kirana 54120100044
Hospitality Management / 2C
 Introduction
From a single plane to an internationally respected brand, more than 60 years of innovation and
service has propelled the growth of Singapore Airlines to become one of the world's leading carriers
with an advanced fleet. Singapore Airlines began with three flights per week, and today our route
network spans 99 destinations in 39 countries. Singapore Airlines Limited (SIA) emerged in 1972 and
is the national airline of Singapore operating major routes globally. SIA has built up a strong
reputation in the aviation industry for its innovation and safety and consistent profitability despite
rising and volatile fuel prices, stress in global financial markets, heightened security issues, and
increased market competition.
SIA has grown from a regional airline into one of the world’s leading carriers and as the first
operational customers of the “super jumbo” Airbus A380. It manages its regional flights with its
wholly owned subsidiary, SilkAir and has a stake in the low-cost airline market through Tiger
Airways. SIA has a dedicated freighter fleet, Singapore Airlines Cargo, and has also diversified into
airline related businesses. SIA have a young and well trained staff focused on service excellence and
a top ranked hub in Singapore to serve their extensive global network. The airline has built a
sustainable competitive advantage using strategies that differentiated it from other airlines based
on superior customer service, both in-flight and on the ground.
 STP Analysis
Segmentation
Market segmentation is the grouping of customers and characterizing them in a relevant manner to
ensure that the product or service is aimed at the right consumer (or customer).
The objective is to help determine marketing strategies and realistic marketing objectives by
understanding customer trends and buyer behaviors.

Bases for segmentation with Singapore Airlines:

• Geographic 
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 more than 35 countries on 5 continents. SIA’s strong presence in the Southeast Asian
region, with its subsidiary Silk Air, connects Singapore to many international destinations in the region.
The percentage of Singapore originating passengers varies from route to route, but on average there’s a
60:40 bias to Singapore.
• Demographics 
Segmenting on the basis of customer factual characteristics such as age, gender, family lifecycle,
Social-Culture, Occupation, Education and Income that can influence purchasing decisions.
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. 

Social-Culture: People from western region (like India) on the average prefer vegetarian meal
whereas people from east prefer non-vegetarian meal.

Suite class and First class passengers are dominantly traveling on business and are male, 25 to 45
years old and earning $ 50,000+ per annum.
Passengers in Business class are split evenly between traveling for business or leisure. Mostly are
male with average age 32.
Economy class passengers are a much broader group. Traveling mainly for leisure and evenly
spread across most socio-economic groups, and age ranges.
• Psychographic 
Attempts to capture what is driving the customer’s behaviour, such as values, personalities, attitudes,
opinion, interest and lifestyle aspirations of each segment.
For example, SIA provides variations of cabin classes (First, Business and Executive Economy) to meet
the product needs and wants of people. SIA employs tiered membership to provide status
preferences to consumers.
In addition, the Low-Cost Airlines have attracted a market that have a simple need to reach their
destination without the “extras”. SIA have positioned to be part of this target market with their stake
in the carrier, Tiger Airways.

• Behavioural 
Segmenting the market based on observable issues on consumer behaviour when consuming the
products. Characteristics include frequency of consumption, buyer readiness and commitment. The
corporate market tends to be a frequent flyer that could gain benefits from SIA’s Frequent Flyer
program (KrisFlyer and PPS Club) in return for consumer loyalty to the airline. Some consumers are
"brand loyal“, like they tend to stick with their preferred brands even when a competing one is on
sale.
Targeting
Targeting is when a firm chooses one or more market segments as a specific target markets.
There are 3 types of market segmentation:
• Standardized Market Targeting
Refers to Mass marketing and this target segment concentrate on the mass market as a whole on
what the majority consumers in the market needs and wants.
• Concentrated Market Targeting
Refers to where organization concentrates its market effort on one particular segment.
• Differentiated Market Targeting
Refers to where firm target several segments and develops distinct products/ services with separate
marketing mix strategies aimed at various group.

Singapore Airlines is a company that considers every customer to be important and thus offers
individualized services to customers. SIA use the differentiated Market Targeting, where they target
in accordance to consumers needs and to their occupation.
For example, those who owe a higher position in the company and is on a business trip would prefer
travelling in either first or business class where more personal space is given. However, those who
are normal travelers would feel that economy class is good enough as they do not need to have
enjoy premium services as they are only away for holiday. Finally youngster who do not earn a
stable income and feel that budget is concerned would prefer in travelling by budget airline.

SIA has two target markets:

The first aimed at people who mostly have a high income with a high-class lifestyle and prefer to
seek comfort with excellent services rather than to get a cheaper price but do not get the facilities
and services as good as SIA.
The other target market is normal passengers who mostly just want to travel and not too concern
about the services and the facilities as long as it’s good enough. For this market, SIA owns budget
airlines as well, Tiger Airways to meet the market needs.
Positioning
 
Positioning refers to the act of locating a brand in customers’ minds over and against other products
in terms of product attributes and benefits that the brand does or does not offer. There are many
different general strategies for positioning products. Attribute or benefit, quality and price, use or
application, competition, high-tech and high-touch can achieve desired positioning.
Market positioning is about how SIA wants consumers to perceive their products and services in
relation to their competitors.

SIA’s positioning strategy uses Singapore Girl as a central ingredient in marketing its image. Singapore
Girl broke that branding image of traditional marketing communications focusing on cabin design,
food, comfort and pricing. Personified through the girls, customers got a sensory/emotional
experience of air travel with SIA’s commitment to service and quality excellence, the more senses the
brand appeals to, the stronger the message will be perceived.
 Type of communication strategy
A. Pull Marketing
Pull marketing is where you develop advertising and promotional strategies that are meant to entice
the prospect to buy your product or service. Some classic examples are "half off!" or "bring in this
coupon to save 25%" or "buy one get one free", etc.
With pull marketing, you are trying to create a sense of increased, time limited value so that the
customer will come into your store to buy.
Pull strategies tend to be emphasized:
• For consumer goods.
• When distribution channels are long.
• When sufficient print and electronic media are available to carry the marketing message.

B. Push Marketing
Push marketing is where you develop advertising and promotional strategies geared toward your
marketing and distribution channels to entice them in promoting your product.
This type of marketing is directed to the distributors. It might include wholesale discounts, kickbacks,
bonuses, and other types of support. It's all designed to have the retailer promote your product to the
end users over a different product.
Push strategies tend to be emphasized:
• For industrial products and/or complex new products.
• When distribution channels are short.
• When few print or electronic media are available.

Just one strategy will not give a very good return. It is necessary to balance both strategies to create
good marketing mix that powerfully entice the customer. Some customer react only to one or another
strategies..

Singapore Airlines combines both the strategies in order to entice the customer. They sell tickets
through travel agents and they also sell ticket directly from their website or from their office.
Singapore Airlines advertising their product through the print and electronic media as we can see
their advertisement on TV, banner, brochure, even their own website. Moreover, they form
cooperation with a bank in a program for loyal customer, the program is KrisFlyer, they cooperate with
The American Express.
 Implement Triangle Communication Strategy
Internal Marketing (Company – Employee)
The relation between the company and employee included in internal communication.
SIA is a large organization, with more than 28,000 staff located around the world. People from different
cultures work together to produce a seamless and consistently positive customer experience.
To keep everyone on the same wavelength, SIA publishes a variety of department newsletters, websites
and a monthly company-wide magazine.
• Regular dialogue sessions between management and staff keep communication flowing. A program
called ‘Staff Ideas in Action’ ensures that new suggestions for improvement are constantly put forward.
Semi-annual business meetings provide another forum for sharing and evaluating results in sales,
marketing, yields and customer satisfaction levels.
• Staff Training
SIA understands that daily customer contact can be draining and that customer expectations are always
on the rise. To meet this challenge, SIA has a US$ 50 million training center, designed to drill all
employees in the fine art of serving customers. As reported in the Straits Times, Singapore’s leading
newspaper, everyone-from the floor sweeper to the deputy managing director-would receive this
training.
• Motivating through Rewards and Recognition
In SIA, the ‘CEO’s Transforming Customer Service Award’ is given annually to teams and
individuals who respond to unique customer situations with exceptionally positive,
innovative or selfless acts of service. This award carries no financial benefit, but it is the most
revered accolade in the airline. Winners and their families are flown to Singapore for a
special dinner celebration, the story of their efforts is published in the monthly magazine,
and their personal status as a ‘Managing Director’s Award Winner’ remains a badge of
distinction for life.

• Career Development
SIA staff are regularly appraised for performance and potential. High-flyers (high
performance and potential) are identified early and given every opportunity to learn and
grow. Senior managers are effectively developed with frequent rotation through top
positions in the company. This leads to a management team with great breadth and depth,
with a shared understanding of ‘the big picture’, and with a commitment to do what’s best
for the customers and the business, not just for one department or another.
External Marketing Communication (Company – Customers)

External communication through advertising (using both printed and electronic media;
brochure, banner, online promoting through their websites), public relations, sales promotion
and direct marketing helps Singapore Airlines build a corporate image to differentiate them
from other airlines competitors in an increasingly crowded marketplace.
SIA has spend 2% of its budget for advertising and promotion. The Singapore Girl is the key
element in the company’s ads strategy since day one. The aim of the strategy was to impart a
feeling romance and luxury service and so it was dominated by image of sarong-clad women
against exotically backdrops. The purpose of the modernization campaign was to give another
strong message to the market that SIA was leader in aircraft technology. Whether SIA’
advertisement is about new destinations, new airplanes, onboard cuisine, or new seats and
entertainment services, the legendary ‘SIA Girl’ is always featured.
Like most carries, SIA depended heavily on independent agents to sell its service. Since 2000
SIA use Abacus a computer reservation program with extended array of services including
airline and hotel, reservation, ground arrangements and regional travel news
Interactive Marketing Communication (Employee – Customers)

The interactive communication is a dynamic, two-way flow of information. Usually through the
personal selling and customer service.
SIA’s employee creates a connection with the customers and makes an effort to stay in touch with
customers through in-flight surveys, customer focus groups and often replies to every compliment
or complaint they receive.
Frequent flyers are kept well-connected with special messages, attractive offers and publications
sent regularly to Priority Passenger Service (PPS) members. Every frequent flyers achieve an elite
‘Solitaire’ status with a wide range of valuable privileges: most convenient check-in, additional
baggage allowance, priority seating and wait listing, and many more.
 Approach for Integrating Service Marketing
Communication
• Manage Service Promises
Singapore Airlines is among the top companies globally that is truly able to control the brand through every
interaction and experience. SIA has become a hugely rewarded innovator and industry leader: A great way to
fly.
Singapore Airlines has been as consistent in its communication vehicles as in its brand strategy. The primary
message “Singapore Airlines – A Great Way to Fly” has been consistently conveyed in exclusive print media and
also in selected TV-commercials of very high production value to underline the quality aspirations of brand. All
communication messages are featured through the iconic Singapore Girl in different themes and settings.
Interestingly, Singapore Airlines has chosen to focus on one aspect of the experiential brand strategy - in-flight
hospitality and warmth featured by the Singapore Girl - rather than trying to communicate the entire brand
benefits through its messages. A dangerous trap, which many other brands often fall into in their efforts to
communicate all at once. This has led to a focused and consistent message for SIA during the last 32 years. This
in itself is a great achievement for any brand.
The Singapore Girl has contributed immensely to the success of Singapore Airlines’ brand strategy and its
entire positioning around customer and service excellence.
• Manage Customer Expectations
“Customers, investors, partners, and staff — everyone expects excellence of us” that is the
slogan of Singapore Airlines. All SIA employees have to be as flexible as possible in their dealing
with customers even it takes more time and effort. Some passengers want to eat as soon as
they are boarding, others preferred to wait. Customers often change their minds. They might
come on board intending to sleep and then decide to watch a movie after all. On long-hours
flight, flexibility is important. Most passengers have individuals habits that correspond to their
travel agendas, which could include sleeping at the beginning and working later or v.v.
Singapore airline operates a frequent flyer program, KrisFlyer, to encourage loyalty in its
customers. In addition to offering miles that can be exchanged for free flights and other
rewards, KrisFlyer members are offered other support services and many benefits. SIA also
utilize an extensive customer database to further their marketing needs.
• Improve Customer Education
Singapore Airlines provide an easier way to purchase the tickets, customers in the US; Singapore; and

five other Asia Pacific countries and territories can now pay for their flights with PayPal on

singaporeair.com. This facility will be available to the airline’s customers in up to 17 countries, making

this the largest collaboration between PayPal and an Asian carrier until now. After booking the flights

online,travellers can now pay tickets using their PayPal account in a few clicks and without the need

to retype their credit card or financial details. PayPal is the faster, safer way to pay and get paid

online. The service allows members to send money without sharing financial information, with the

flexibility to pay using their account balances, bank accounts, debit cards and credit cards in various

markets. Besides using their online balance, PayPal users can pay for their Singapore Airlines flights

from their bank accounts, credit cards or debit cards that are linked to their PayPal account . In

addition, PayPal never shares its users financial information, it increase the security of the online

transaction and protecting the privacy of its users. Their collaboration is another way to deliver

choice, convenience and value to consumers across Asia Pacific and the world.
• Manage Internal Marketing Communication
Internal communication enable SIA to consistently deliver on its brand promise to become the world's

most successful international airline. A good relationship between the employees are also needed

because it is needed to improve the teamwork when they are doing their job. SIA maintain strong

relationships among management and employees by communicating the company's mission, core

values and strategic directions through a comprehensive and integrated communication network that

comprises print materials, online communication channels, face-to-face meetings or trainings, bond-

building extra-curricular activities and the organizational climate survey.

The whole members are involved in all meetings and training sessions because their involvement helps

to break down walls between unions and management and inculcate a sense of ownership. At SIA,

those are really useful to improve and maintain the excellent services from the whole employees to

reach the goals, which is to delivery the services and the products equally or even greater than the

promises.
 Conclusion
SIA is a proven company that delivers great service reflecting their frequent
international awards for innovation, flight experience and quality service. Many
companies aspire to the status that SIA has earned itself, but SIA earned this
through their commitment towards their mission statement of delivering quality
world class service to their customers as their prime objective. Like the glory days of
aviation when flying was an exclusive experience, SIA have continued to deliver to
their customers the sense that flying is glamorous and is matched with quality
customer service. Although their company slogan “A great way to fly” instills this,
SIA must continue to seek ways of improvement in order to maintain their track
record whilst retaining the loyalty of their customers and attracting new ones.