Executive summary Emirates airline is the national carrier of Dubai government, United Arab Emirates.
It was established by Dubai government. Emirates flew its first flights out of Dubai on 25th October 1985. The airline commenced its commercial operations with two leased aircraft which were Boeing 737 and Airbus 300 B4. This assignment of marketing plan is divided into seven main parts – namely, mission statement, environment analysis, marketing objectives, marketing strategy, tactical integrated marketing plan, budget and appropriate control & evaluation. The mission section gives the reader an overview of Emirates airline in light of its mission. Environment analysis section, give analysis of PESTLE, SWOT, company analysis, customer analysis, and main competitors’ analysis. Here the reader will all be able to find out the internal and external analysis of Emirates airline. Marketing objectives section, shed lights on the performance of Emirates to achieve its objectives. Marketing strategy section, give a light of positioning strategy of Emirates airline. Tactical integrated marketing plan section shed lights on both the 7P’s of the marketing mix. Budget section; give the reader the expectation for next year of Emirates airline goals. Appropriate control and evaluation section, give the measurement that Emirates airline’ marketing plans are successful by measuring the performance.
1. Mission statement and objectives Emirates airline’ mission is to deliver the highest standards of service quality to support business in the air transportation industry and to achieve complete customer satisfaction through innovation and refinement of service levels.
Emirates airline want to be the best in every venture Emirates undertake, to meet their customers’ expectations profitably, contribution of the success of Dubai incorporated, and to make the city the new global aviation center for the 21st century.
Emirates airline aim is the quality, not quantity, and since taking those steps onto improving its aviation industry. Nowadays Emirates has influence into travel and tourism industry in the global because Emirates commitment to the highest standards of quality in every aspect of its business.
Emirates airline’s objective is positioning Emirates airline as a global airline and the carrier of choice to the Gulf countries, the Middle East and beyond.
2. Environmental [Internal & External] analysis
PESTLE Analysis Emirates airline is owned by Dubai’s government which this will help it to follow the regulations of government. Emirates has signed the agreements with countries in Asian Pacific also other countries about facilitate trade. These agreements have opened up Emirates to the world.
modern. Emirates airline located at a very suitable region. Which the airline is take benefit of resources from both sides. most of the people have high level of education which they are able to led or enter the industry sector. The potential investments in Dubai of the tourism industry and the business world will encourage more people to visit it. it is in middle of Eastern and Western regions. This technology called Flextracks. Emirates airline growth has never been lower than 20 per cent annually. Emirates airline has recently using the latest airbus 380 aircraft is friendly with environment and Emirates will operate 58 of them. Emirates develop the online ticket purchase to make it conveniences for customers. Emirates managed to save 628 tons of fuel and 57 hours in trip time. Emirates
. The technology gives many facilities. This kind of aircraft able to consume less fuel. and the airline has recorded annually profit in every year since its third year in operation. The Asian continent has a good economy and Emirates has advantage from this. Emirates airline invest at trip planning system which it allowed to plan carefully for trips that aim to achieve of saving time and fuel led to reduce the emissions. It has been very rapid at its economy with substantial growing rate which affect its overall income. UAE is Arab. Dubai is one of the most rapidly growing cities in the world.-
The conscious about environment pollution of Emirates government and staff. That led Emirates to take part of responsibilities of solution for emissions.
The Government of Dubai own Emirates airline. and Muslim country.
The important contributing factor to Emirates’ success. Airbus 380 aircraft is friendly with environment. The UAE’s government has been a successful in negotiating
. by establishing links with other states and provides a necessary platform for the successful implementation. With huge profits from several consecutive years. the company has outshined its major rival companies to become a model firm. is Dubai’s very suitable location.
Emirates have ability to develop continuously new generations of more advanced airline and aviation services for long-term competitiveness. preparing the ground work for conducting negotiations for Air Service Agreements. The department also serves as a point of contact for international and national aviation authorities and looks after aero-political rights of Dubai. Department of International Government Affairs. and a huge opportunity for future growth. Emirates Airline streamlined their business to take advantage of market share and size.follow the rules and regulation which set by legislation of government.2. Emirates airline began with the Dubai Desert Conservation Reserve (DDCR). Emirates airline was start up with US$10 million from Dubai government in 1985. (About Emirates)
2. This kind of aircraft able to consume less of fuel and emissions.
Strengths Emirates Airline is able to have strategic position in the global market. Emirates developed this reserve that is now the largest environmental park country. of an International Air Transport System.
Etihad’s expansion might prevent Emirates from obtaining much needed traffic rights to countries that do not pursue an
Qatar Airways fleet comprises 91 aircraft with 182 on firm order. that might pose the most serious future threat to Emirates. which are very likely to further increase demand for air travel to and from the UAE.-
The ability to continuously renew and improve their service in the airline and aviation.
Qatar Airways’ catch-up strategy with Emirates seems to rely largely on undercutting its competitor while offering similar product quality.
The competitors have the very aggressive growth plans of some other Gulf-based carriers. Threats
Diversification and approach haven’t been fully successful and this can be considered as one of the weaknesses of the company. most notably of Qatar Airways and Etihad Airways. Analysts have accused the company of focusing too much on their high-end acquisitions and diversification in spite of the risky effects of such decisions.
free-trade agreements with all major economies from the USA to the emerging markets of Asia (though not with a reluctant EU).
Etihad’s fleet comprises 50 aircraft with 103 aircraft on order.
the ability to take size from market share from the aviation industry.
Emirates have three segments of classes onboard which it is first class.
. Also offering convenience style for the customers. using network.8% of reach 27. to provide a better flight. The customer will not feel tired or bored with a huge package of entertainment system also customers will arrive to their destination revived and refreshed with take a shower Spas in the onboard. sleep on flat bed or enjoy the comfortable onboard.open-skies policy.
Economy class is set to give the customers more space. like doing some work. business class and economy class.3.
Size of customer market
The customers (passengers) increased by 20.
Business class provides to customers highest levels of service. Also.
First class offer for the customers’ highest levels of luxury.454 million 2009-2010 (Annual report). quality and comfort available onboard which it is most advanced class cabins in the air. This figure of increasing of 20.8% shows satisfaction of customers too by using Emirates. more comfort and better service.
.(Please refer to diagram in the appendix)
Type of customer
The most of customers using Emirates airline for tourism to spend their holidays and the other for businesses as Dubai is tourism centre and modern cosmopolitan city with high standards of healthcare. Dubai world trade centre and attractiveness things so that make advantage for Emirates. Emirates provide for group travel high standards of services such as rapid check in. The presence of one or more competitors can reduce the prices of services as the competitors attempt to gain a larger market share. Competition also requires companies to become more efficient in order to reduce costs. Such as international events.
The main competitors of Emirates are Singapore airline and British airways. and speedier passage through the airport which led the customer like to use Emirates for their travel. festivals. In addition.4.
Many competitors in the aviation industry compete of entity in the industry which is a rival against Emirates airline. Emirates provide a high quality of services and facilities to reach satisfaction to their customers. education and leisure pursuits. (Please refer to diagram in the appendix)
Singapore airlines strengths are youngest fleet of aircrafts. service and overall quality.5. Emirates Airline is owned by Dubai's government. British airways operate in two different markets. Weaknesses: British airways continue to have extremely high debts. Emirates leased two aircraft which were Boeing 737 and Airbus 300 B4. Singapore airlines weaknesses are weak turnover ratios. Singapore airlines has consistently been one of the most profitable airlines globally. Emirates have grown in scale and stature through the competition from the aviation industry. Emirates flew its first flights out of Dubai on 25th October 1985. and strong financial performance.5.1 History
Emirates have been in the business for the past twenty five years. and unbalanced business portfolio. making Emirates one of the largest airlines by research firm Skytrax. and had the reputation of a trendsetter and industry challenger. almost iconic.
2. First one is long-haul which competes on routes. Strengths: British airways have gained loyalty and trust from customers.Singapore airline is the strongest brand from Asia and it’s long-serving.
Emirate’s competitive advantage
. Second one is short-haul flights compete on low price. Emirates airlines now travel to 106 destinations across 6 continents.
For instance. The aim of such changes is to be the leader in industry by increasing the brand name awareness regionally and internationally which will increase the demand and the profit as well. Emirates provide for another airline companies such as Qatar Airways with training courses by using the most modern machines. Emirates was the first airline that offered TV screen for all classes inside the air plane. In addition. Emirates gained a competitive advantage by focusing in new segments in the market. called plane simulator to be the only company in the Middle East that offers such service. Emirates was the sixthlargest airline in the world in terms of international passengers carried.455 AED million.Emirates adopts differentiation generic strategy to gain a competitive advantage amongst its competitors by offering the highest quality of services in order to be the best company in the market and differentiates from its competitors. Also Emirates was first company in the Middle East to launch the e-ticketing.565 AED million ( US$ 964 million) from sales of 43.
2.2 Market performance
Market performance of Emirates airline is growing up as Emirates provide in annual report which Emirates made a net profit of 3. For example. Emirates airline has continue development of expansion for its airport that terminal three
depend on oil prices.8 AED million and airline aim to reach its goal of sales by 52. over 370 acres. The expansion in Emirates fleet will led to extend on its brand name and link to the established
. it is fortunate to be operating in the Middle East where there is still positive growth in travel by airlines. and 21 Boeing 777s plus 50 optional on the type.500 AED million of increasing 20% which that will increase in the profit too from 3. Once fully operational in 2011. (Please refer to diagram in the appendix)
3. The terminal three development will be exclusively for the A380-800 Airbus aircraft.opened in October of 2008 at Dubai International Airport and becoming the largest building in the world by floor space. 50 Airbus A380s. to be flown to several destinations across the globe. 5 Boeing 747s.250 AED million. Emirates airline plan to reduce the expenditure Emirates airline plan to cut cost by 5 .455.
Emirates airline want to increase the number of aircrafts 146 more on order of
Emirates airline fleet expansion. it will have the annual capacity for 43 million passengers. The sales goal of Emirates airline Emirates airline achieved sales this year of 43.538 AED million to 4. of which Emirates Airlines will have 58 in total when all orders are received.
Emirates airline faced many challenges as other airlines.10 %. The market share of Emirates airline Emirates airline objective of market share is aiming to increase market share to 70 % based on Dubai market. 70 Airbus A350 XWBs.
The new 4P’s and recommendations: Product The Emirates airline's first class is unique cabin in the air which the passenger will find a high quality of service and luxury. extend on Emirates image of service quality. the shower in bath room that the passengers able to take shower in the first class. value and innovation.
4. The recommendation is using penetration pricing strategy. Also. The recommendation is to provide a small cinema in the airplane especially for long-haul journey that the passengers will feel more comfortable. The price charged for services is
. Emirates airline promote to create positive awareness and generate greater demand for the airline. Moreover.meaningful positioning. Price The price of Emirates airline is setting of premium pricing strategy. Marketing strategy Positioning strategy Emirates airline's first class have many of attributes positioning. All of these attributes inside one airplane also especially for first class passengers which that attributes will occupies in consumers’ minds. The attributes of the first class is comfortable seat which it can be convert to be fully flat bed. The positioning brand are created in the customers mind that Emirates put more effort to reach a good positioning. emirates airline' first class has offer a mini bar to unlimited service for passengers. In addition.
Emirates first class offers a unique world of style. the price will increase. separated by wide aisles. Unrivalled space and comfort. luxury and refinement. • Electronically controlled leg rest and lumbar support-new seats also have many other touch-screen electronic controls. and those selected to attend to Emirates first class passengers provide unequalled service. are set in a 2-2-2 configuration in the most emirates airplane. attentive but unobtrusive service is always at hand. where every aspect of Emirates service has been meticulously planned for its passengers’ comfort and enjoyment.
. With up to four crew members dedicated exclusively to first class cabin. Place The Emirates airline’s office. The recommendation is doing a permanent TV channel of emirates airline which can promote all time and using all kind of promotions.
Tactical integrated marketing plan
Emirates airline provide a unique services and especial for first class cabin. Promotion The Emirates airline is using many elements of marketing promotion which it is all temporary trade promotions. with: • 12 roomy sleeper seat. The recommendation is Emirates airline should offer its tickets in the all national banks branches in each Emirates airline's destinations because every people in the world is dealing with bank.set artificially low in order to gain market share. agencies and dealers are available in many places to sell Emirates airline’s ticket. When this strategy had achieved its maturity of time. Emirates cabin crew among the best in the world.
agents. Live views from external camera of take offs. It can be short as being direct from Emirates airline to the consumer from using Emirates web site (online booking) or may include several inter-connected with many types of intermediaries such as distributors. advertising. direct mail. there are special parts of
Privacy hood and individual reading lamps built into each seat on some aircrafts. Also. This strategy is using to a substantial competitive advantage exists. Emirates airline use most useful elements of the promotions mix such as public relations. The promotions play a special part in the Emirates airline strategy that Emirates airline make it as a link to increase customers awareness. Place
Emirates airline are using intensive strategy by multi of distribution channel to reach customers and to make it more convenience. and sponsorship.
First class communication and entertainment
Personal video system with large screen.
Emirates airline's promotion budget has grown by AED 156 million to reach just over AED 1 billion. SMS. Such high prices are charge for high quality and luxuries. sales promotion. and phone in seat. landing and en route scenery. exhibitions.
Emirates airline use the strategy of premium pricing which use a high price where there is a uniqueness about the service providing by Emirates airline. retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.
Emirates airline are sponsoring in many fields such as Football. powerboat racing. Also. Consumers make judgments and deliver perceptions of the service based on Emirates' employees how interact with. it could be from agencies traveler. Then. or any types of intermediaries which it is suitable and fast for customers or travelers to get a ticket. and service knowledge to enable them to serve first class passengers that consumers are paying for. In addition. aptitude.
. Emirates airline is recruiting the right people of high caliber and train existing staff appropriately in the delivery of their service to enable them to continuously improve the business. horse racing. beginning with the first powerboat race held in Dubai. There are many options and facilities providing from Emirates to make buying a ticket convenient. People
One of the essential ingredients of Emirates airline is the use of appropriate staff and people. yacht racing. Australian Rules football. tennis. Emirates’ staff will handle every single thing to make sure that the passengers are comforted and happy. their baggage will be delivered by Emirates’ staff and they are able to access to lounges at all other airports. first class passengers board to the airplane first follow by rest people in different level.
Emirates airline processes begin from the moment that customer wants buy the ticket. in an environment that encourages teamwork. golf. Emirates’ staffs have the appropriate interpersonal skills. Emirates airline has obtain a form of competitive advantage. Also. No long waiting for boarding point because Emirates airline is offering special counter for them. and shopping festivals. online booking. Emirates airline will welcome those customers which they will use first class. Emirates has been committed to sponsorship more than twenty years in both the UAE and around the world. cricket.promoting the first class. Emirates airline sees it one of the best way to increase the level of customer’s awareness. in 1987. loyalty and commitment Emirates to ongoing development and success.
Emirates airline web site. phone and e-mail R&D of buy or lease Engineering & of new aircrafts purchase department Doing advertisements Marketing department to introduce the benefits that customers can get of flying in Emirates
. Physical evidence on the ground of Emirates airline are considering under booking offices about how fast the customer will get the booking. Emirates airline has award-winning best in flight entertainment system with more than 1. the customer have choices such as piece of paper (ticket) or only ticket number. For first class customer will find different treatment such as privet counter to serve them. keep pace with technological advances so Emirates airline site provides the latest methods for Customers to making it easy and convenient for the acquisition of the ticket and to ensure the safe of payment method. Cleanliness inside is mast in the airplane.
Physical evidences are very important and through it Emirates airline will prove how the passengers are important and different for choosing Emirates by providing to them unique services. Entertainment.200 channels on demand. Emirates offer passenger world-class lounge facilities in the airport at every destination which passengers will experience Emirates’ luxurious service. Ticket that Emirates provide depend on the order of the customer. In-Flight: Emirates have latest aircraft such as Airbus A380. The furniture and design are like lounge and airport. Seating configuration widely with reclines up to a fully fat bed.
One year of integrated marketing plan (Action plan) Months January February Descriptions Department responsible Design & engineering department IT department Completion expectation 1 until 29 January 2011 1 until 15 February 2011 1 until 30 March 2011 1 until 7 April 2011
R&D of designing all cabins Improve the media system in the first class cabin such as SMS. Uniforms of crew set to be recognized by the passengers.
250 61.547 6.999 Current year 2010 AED m 42.May June July
August September October November December
Update airport system and entertainment system in flight Training 50 crew to improve their performance Advertisements campaign to promote how easy to visa pass to enter Dubai if using Emirates airline Checking out of facilities pricing Maintenance for 30 aircrafts Evaluating the sales performance Secure the process of e-buying Set new promotions strategies for 2012
IT department Human resource department Marketing department
1 until 20 May 2011 1 until 25 June 2011 1 until 29 July 2011
Marketing department Engineering department Financial department IT department Telecom department
1until 27 August 2011 1 until 30 September 2011 1 until 20 October 2011 1 until 29 November 2011 1 until 15 December 2011
5.000 49.000) 4. Budget Emirates airline set budgeting for year 2011 of expecting to increase the sales Expecting for year 2011 AED m Revenue Operating cost Profit Cash flow Expenditure 45.700 (40.890) 3.675
.477 (39.565 55.
Help Emirates’ management and marketing control to evaluate and improve the spending efficiency and impact of marketing expenditures. performance measurement. Months January Control & evaluation Control by efficiency control to evaluate and improve spending efficiency by evaluate how the passengers are satisfy from number of traveler February Control by efficiency control to evaluate how improve earning profit of providing more facilities and see the changing between years in the profit March Control by annual-plan control to increase Emirates airline capacity to effect market share by aim to increase of 70% based on Dubai market share April Control by profitability control. Appropriate control & evaluation Evaluation and control is an essential part of the management process. Examine by control processes of goal setting. performance diagnosis and corrective action.454
6. It is steps that Emirates airline takes to ensure that its marketing plans are successful by measuring the performance. It tells Emirates owners important information. The advertisements are suitable to reach many customer and contribute of awareness among the people that will led to increase Emirates airline sales May Control by profitability control.Passengers carried Number ‘000
32. whether the planned results are being achieved. Bring the latest and high
. evaluate how improve pricing strategy to more profits September Control by annual-plan control to increase Emirates airline control of achieve result of performance October Control by efficiency control of achieve result of sale force if the Emirates set right strategies or not November Control by efficiency control of secure the process of ebuying.quality of media to satisfy customers of ticket price via what will find. June Control by annual-plan control to increase Emirates airline staffs skill which that will increase satisfactions of customers and sales. July Control by profitability control. this advertisements campaign will help the leverage of finance August Control by efficiency control. more secure will led to more sales December Control by annual-plan control to increase Emirates airline’ buying force and set new strategies
These diagrams are show of Emirates airline’s passengers carried in ‘000 from year 2005 to year 2010 and geographical revenue in % of type of customers.
000 5.3%Europe 12.731 (2008-09) 27.454 (2009-10)
Geog raphical rev enue in %
27. Middle East and Iran 11.6%Gulf.000 20.4%Am ericas
Emirates Financial and Operational Performance
.2%Africa 9.498 (2005-06) 17.000 25.6%Wast Asia and Indian Ocean 11.000 0 Passengerscarried in '000 14.9%East Asia and Australasia 27.30.229 (2007-08) 22.000 15.000 10.544 (2006-07) 21.
Expenditure (AED m)
20.9 35.455.1 21.143.474.5
Cargo carried (thousand)
31 March 2006 31 March 2007 31 March 2008 31 March 2009 31 March 2010
o Annual report attached in the back
Net Profit(+)/Loss() (AED m)
(+) 2.5 17.676 (+) 3.999 (+) 3.489.6 26.050.121.7 43.9 29.Year Ended
Passengers Flown (thousand)
14.0118.675. 12editition Philip Kotler and Kevin Lane Keller (2009) Marketing management.020.196.9 1.839.890.6 40.580.730.096.544.1 1.229.408.416 (+) 5.3 43.266.424 (+) 981.2 22.4 39.282.5 1. Reference
Books: Philip Kotler and Gary Amrmstrong (2008) Principles of marketing.538.497.3 1.6
Turnover (AED m)
23.454.9 27. 13edition
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