London Metropolitan University

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

2. References CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .2. Transit Passengers of Istanbul 4. Strategic Marketing Focus.1. Product 4.London Metropolitan University Table of Contents: 1. Conclusion 6.3.4.4.4.5. Customer Service 5.1.5.1. Competitors Overview and Situation analysis 2.3. Easyjet 2. Introduction 2.4.1.1.3. Target Market 4.6.3.2. Intended Strategies 4. British Airways 2.4. Internal Environment – SWOT Analysis 4.3.1. Marketing programmes 4.3. 3.5.2. Core competencies 3. Values 3. Goals and Objectives 3. Competitive advantage of Turkish Airlines. The Competitors 2.3.1.Cost reductions 4. Competitors products 2.4. Mission 3.5. Airline Overview 2.4.1. Market Penetration (Improving In-flight services) 4. 3.2.1.4.4.2. Place 4.3. Turkish Tourism and Business segments 4.3.4. Promotion 4. Appendices (Tables and Charts) 7.2.1. Product Development (First class private suite) 4.1.2.3. Marketing Plan 4. Business Strategy 2.3. Load Factor 4. External Environment -PEST Analysis 3. Pegasus Airlines 2. Market Development (Extending new routes) 4. Expatriates in Turkey 4. Market Share Estimates by Class 4.2.3. Existing Market 2.2.1.4. Price 4.2.

9% of the company shares are public. which it passes onto its passengers through high quality service. while the rest remain state-owned. 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. Turkish Airlines became a Star Alliance member enabling the company to offer even more destination through the code share flights of its partners. was founded in Ankara on 20 May 1933 as “State Airlines Administration. 5 million passengers and the number of transit passengers have increased by 41. Acting on these values. The task undertaken begins with overview of the company. 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. it was restructured into “Turkish Airlines”. its products for the UK market and competitive advantage. Airline Overview Turkish Airlines. followed by an in-depth analysis of the current situation on the London. with the shuttle service between Istanbul and the Turkish capital Ankara being particularly well used. particularly focusing on its services. 2. product differentiation.British Airways. Turkish Airlines has increased its annual passenger and the Available Seat Kilometer (ASK) by 15% and 11. market share and evaluation of its future marketing activities. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . which has covered the airline sector for 18 years. Turkish Airlines is an airline that rapidly implements transformative solutions in support of growth and development. 25% of the company was sold via an SPO under a privatisation programme in 2005. by providing extensive analysis of overall capacity between the city pairs and analysis of the competition. Turkish Airlines now has its sights set on a 5-star rating. 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. as measured by Skytrax(1). the report will be concluded with an overall summary of the company situation. Manchester and Birmingham to Istanbul routes. 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. target markets and customer segments is vital to ensure its survival against the existing services provided by its competitors . 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. Today 50. In 1955. Turkey‟s national flag carrier. When considering the economical crisis affecting many European Carriers and leading them to decrease their operations.London Metropolitan University 1.1. With its fleet of 127 aircraft. In 2008.” under the direction of the Ministry of Defence. Finally. The report also looks at the airline internal strengths and weaknesses through SWOT analysis and identifies the airline external operating environment through PEST analysis. Since April 2008. Turkish Airlines also have an extensive network of domestic flights. in 2009 Turkish Airlines carried 22. Constantly seeking innovation. Introduction A comprehensive marketing plan for Turkish Airlines.3% respectively. Turkish Airlines operate various onward connections throughout the Middle East and Central Asia. 2. Turkish Airlines has kept its position ranked as one of the fastest-growing airlines among European Carriers in terms of capacity and traffic growth. A clear measure of Turkish Airline‟s rise is its status as one of the world‟s 4-star airlines. Pegasus Airlines and Easyjet. 3 % across a network comprised of 145 International and 36 domestic destinations From Istanbul.

These are: British Airways that execute flights from London Heathrow to Istanbul Ataturk (2-3 flights daily).3.4. Another advantage of Turkish Airlines is that the company serve the route to Istanbul through regional airports in the UK. Based on the above information. Pegasus Airlines serving London Stansted – Istanbul Sabiha Gokcen (1 flight daily) and Easyjet serving London Gatwick – Istanbul Sabiha Gokcen (1 flight daily) (2). The Competitors Competitors for Turkish Airlines are classified as direct and non-direct threat. Table 1 below shows the current flight schedule of Turkish Airlines from UK to Istanbul. Existing Market Turkish Airlines is one of the major operators connecting directly UK with Turkey (and beyond) from London . 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. Despite there are other airlines servicing London – Istanbul route. the latter possess the advantage of servicing different airports around UK. Turkish Airlines is the only company serving airports as London Gatwick. targeting local communities and businesses on a wider spectrum. Turkish Airlines main competitor is British Airways – as a full service airline providing connection from main-to-main airport. Never the less.London Metropolitan University 2. Manchester and Birmingham in addition to its main London Heathrow base. such as Pegasus Airlines and Easyjet. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . the company remains very stable and its market share is estimated to be 54% of the total market (Reuters 09).2. 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. 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. London Stansted. as Manchester (the 2 nd largest airport after Heathrow) and Birmingham. it also operates flights to Istanbul from other airports such as London Gatwick and London Stansted. 2. Turkish Airlines main competitor remains British Airways.Heathrow through its major hub in Istanbul – Ataturk Airport. Although BA is a direct threat to Turkish Airlines.

British Airways is a full service airline that provide similar product to Turkish Airlines and therefore is considered as the main competitor. Competitors products Pegasus Airlines and Easyjet. Regional connections from its main hub in Istanbul.Manchester and Birmingham. It is a full service airline – the national carrier of Great Britain. 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. Flights frequencies are another advantage that boosts passengers flying the airline to increase enormously. Turkish Airlines competitive advantage in UK is based on its flight operations from three London airports and two regional operations . Pegasus Airlines Pegasus Airlines is a LCC servicing London Stansted – Istanbul Sabiha Gokcen Airport. 2.4.5. The airline is not classified as a main threat to Turkish Airlines services.4.). Their flights are operated either from/or to secondary airports which are no attractive to wider group of passengers (especially business). Its strong position in the UK market is well defined. paid snacks and baggage allowance. 2. even though it operates from the 2nd largest airport in London – Gatwick. 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). BA serves more than 680 destinations (3) around the world some of which on code share bases with One World partner airlines. enables Turkish Airlines to be one of the most desirable airlines. quality pre-boarding and onboard services and great customer service. always associated with the Turkish hospitality – experience of comfort.London Metropolitan University 2. Competitive advantage of Turkish Airlines.4. 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. British Airways British Airways is the main competitor of Turkish Airlines on the route LHR – IST. Its product has a low value compared to the full service of Turkish Airlines. speed and timeliness without compromising service quality. Flying Turkish Airlines is an experience of its own. The airline is better positioned with flight services within mainland Europe and has no regional connections within Turkey. 2. 2. enabling the company to increase its market share and passenger network. They provide the economy (leisure traveller) product along with the upper economy and business class experience. 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. 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.3. One advantage of this carrier is the fact that it has extensive route connections in regional Turkey.4. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .1. Easyjet Easyjet is a Low Cost carrier servicing London Gatwick .2.4.Istanbul Sabiha Gokcen Airport.4. etc. Therefore their product and marketing strategy differs from the one of Turkish Airlines. The most important factor separating Turkish Airlines from its competitors is its success in maintaining reliability.

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. This will primarily be achieved in three stages.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 . such as dedicated check-in points. exclusive security gates and effortless passport control at low fares assign the airline as one of the most preferred among different group of passengers. 3. service quality and competitiveness while maintaining its identity of the flag carrier of the Republic of Turkey.4% Increase load factor from 68% to 72% Further increase of load factor by 5% to 77% Promote thy. providing services. 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. 3. 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. product line. Mission To become a preferred leading European air carrier with global network coverage.London Metropolitan University The onboard product combining economy service focused to the leisure passengers. Each segment of the market will be targeted to increase Turkish Airlines sales and improve the airlines load factors.2. 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. Another major goal for the company is to be the bridge between the Asia and European markets through their Istanbul hub. This goal will be achieved by strong focus on transit passengers. 3. reliability.1. 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. 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. local Turkish communities and businesses. together with the unique business passengers‟ product. thanks to its strict compliance with flight safety.

leading to sharp increases in passenger numbers. Growing UK population and increasing demand for travel products . UK Economic downturn can result in decline of air travel – particularly for business traffic.5.London Metropolitan University 3. passengers can benefit from more than 940 destinations on Star alliance partners network. e-services . As the 20th Star Alliance member. 3. In addition. e-ticketing . customer service and ground operations.public. Turkish Airlines acts with the awareness of being the flag carrier of Turkey. Turkish Airlines is today a 4-star airline with a fleet of 130 aircraft flying to 145 destinations around the world. population of 75 million. Summing up the company experiences. marketing. Turkish Airlines took its place among the giants of the world‟s aviation sector. Economical Turkey dynamic economy. It is an important milestone in the company's history as the company joined one of the most prestigious airline alliances in the world . Turkish Airlines quality and safety have received global exposure through the Star Alliance broad network.PEST Analysis* Political Turkey 50.9% of the company shares . 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.4. Technological Turkey & UK New fleet . having completed an array o f membership steps in areas ranging from information technology infrastructure. * Please refer to Appendix 1 for detailed PEST Analysis CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . 3. increasing disposable income among its population. External Environment . Sociological Turkey unique growth opportunity. the rest remain state-owned .000 sq km). e-customer care. UK Huge presence of Turkish community .the world's biggest airline marketing partnership.Star Alliance . relatively large geographical area (780. Turkish Airlines has shown a tremendous development by becoming one of the fastest growing airlines in the world. strong political/governmental backup. Values With flight safety and customer service quality as its two indispensable values. UK Possible political instability that could worsen the relations between the 2 countries . Core competencies Over the past five years. sales.3. In 2009 Turkish Airlines celebrated its 75th anniversary. but also was awarded 4-star quality assurance by Skytrax.

Substantial cost advantage over rivals.6. *Please refer to Appendix 1 for detailed SWOT Analysis CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . THREATS Turkey LCCs increasing their presence . Product differentiation. Great product and customer services. Business customers focus. despite the economic crisis. Brand/ specific product awareness. WEAKNESSESS Turkey Higher risk organic growth strategy. British Airways coverage expansion.London Metropolitan University 3. Internal Environment – SWOT Analysis* STRENGTHS Turkey Expanding home market economy and favourable demographic. UK Market adaptation product. Benefiting from liberalisation policies. OPPORTUNITIES Turkey A growing market. Massive fleet growth to fund. Great flight frequency. UK Substantial market share. A popular tourism destination. Currency shifts may inhibit profitability. Under-utilising the potential of a strong alliance. National Flag carrier – European Capital of Culture 2010 Airline. UK LCCs increasing their presence. 3 London airports + 2 regional services. British Airways product differentiation. UK Extend coverage into Scotland. Star Alliance membership and close relationship with Lufthansa. Drawing passengers into onward flights from Istanbul hub. Strategic geographic position. Rising market share.

London Metropolitan University 4. The primary target market for the airline is corporate business air travel. Marketing Plan 4. significantly higher levels of comfort offered by the seats and a higher degree of luxury compared to the competition. 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. 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. These customers are generally uninterested in the frequency demanded by business travellers. The company product will be positioned to these customers to provide significant cost savings over competitors. PwC. 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. Corporate travellers that Turkish Airlines should be targeting include.1. The following table represents the market share estimate s by passengers‟ class for flights from London (3 airports). Market Share Estimates by Class The leisure passengers are the main income generator for Turkish Airlines. Manchester and Birmingham (in total).1. Table 3 Leisure Business Source: Reuters 54% 32% CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . 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. 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. Delloit. they will vary on price. whilst business passengers remain at a lower level.1. 4. Both London and Istanbul are cities with many multinational companies and businesses. Deutsche bank. 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). The product will be marketed and positioned to these customers as a „first class service at business class fares’. which create a vast market for corporate travel. The product will also be positioned to this target market as the one with the highest levels of service on board the aircraft. The final target market for the airline is the luxury travel market that exists from London and Manchester to Istanbul. The main need of this type of customers is the corporate discount available in return for volume.

(Figures calculated from Table 3 and Table 4) 4.4%. There are thousands of hotels and other tourist oriented businesses in the city. giving the airline a substantial 58% market share of the total business and leisure capacity offered on the London to Istanbul route. 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%.1. most of whom entered the country through the airports and seaports of Istanbul CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .2. 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.1 million tourists visited Turkey (TurkStat).London Metropolitan University 4. the marketing plan main objective will be to increase the airlines ‟ average load factors to around 72% towards the start of the summer period. capacity (ASK) and load factor in % from 2005 – Sep 2009. The opening of specific markets in the city during the 1980s further strengthened the city's economic status. Through increased marketing and focused advertising campaigns. In 2009 a total of 23. Turkish Tourism and Business segments Istanbul as Turkey's cultural and financial centre. Istanbul is also Turkey's largest industrial centre.3. catering to both vacationers and visiting professionals. 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. It employs approximately 20% of Turkey's industrial labour and contributes 38% of Turkey's industrial workspace. It is one of the most important tourism centres in Turkey.1. 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. profitable load factors) and thus increasing Turkish Airlines market share to 62. Load Factor The following table 4 shows Turkish Airlines traffic (RPK).

4% compared to the preceding year. and commercial activities.8 billion. 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. 4.1. 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. 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. Further to that.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. Market Penetration (Improving In-flight services) Improving in-flight services is a major move that could separate Turkish Airlines from its competitors. While world famous pop stars fill stadiums. Entertainment and communication in-flight systems are major advantage of Turkish Airlines. cultural. via its unique product. such as catering that influence the Turkish tradition (cuisine) and hospitality. The Istanbul International Film Festival is one of the most important film festivals in Europe. ballet and theatre continue throughout the year.2% of Turkey's gross national product. focusing on all transit passengers. Once the airline.4. while the Istanbul Biennial is another major event of fine arts.5.4 billion and imports worth $69. concerts and jazz legends can be found often playing to a full house. In 2008 companies based in Istanbul made exports worth $41. During seasonal festivals.1. which corresponded to 56.2.2% of Turkey's exports and imports in that year (TurkStat). Transit Passengers of Istanbul There were 2. that could choose the airline for their onward travel or in near future. chorale ensembles. It is also one of the world's major conference destinations and is an increasingly popular choice for the world's leading international associations. This is an increase of 6.6% and 60. The city is very familiar to expats that have chosen it for their new home. world famous orchestras.706. 4. Istanbul have been selected to be the European capital of culture for 2010. would attract more passengers looking for enjoyable and influential travel experience.614 transit passengers at Istanbul Ataturk Airport in 2009.1. Whilst exact TurkStat figures relating to the number of expats coming from UK are not available. as a single bad experience on Turkish Airlines will drive customers back to British Airways (and other airlines). which brings in and out a lot of business traffic. Turkish Airlines have the opportunity of a bigger exposure to transiting passengers. Promotions like companion free offers. advanced in-flight technology and world class cuisine are all marketing strategies that Turkish Airlines competitors embrace to capture premium travellers. activities like opera. As the main carrier at Ataturk Airport. Turkish Airlines main goal for 2010 is to create a bridge between Europe and the East through its Istanbul hub. Providing a different in-flight product. the Turkish Statistics Institute. and generates 21. and specific product tailored for the business travellers focusing on their needs and wants. many multinational companies have branches. Istanbul generates 55% of Turkey's trade and 45% of the country's wholesale trade. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . their latest findings do show that now around 235. which gives further opportunities for Turkish Airlines as the flag carrier and official ambassador of the city as a travel destination.2. Expatriates in Turkey The latest statistics from TurkStat. The city is becoming increasingly colourful in terms of its rich social.London Metropolitan University and Antalya. reveal that there has been a steady increase in the numbers of expats going to live in Turkey year by year. 4. 4.

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.London Metropolitan University 4. general trend of a business class consumer. 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. Market Development (Extending new routes) A great opportunity for Turkish Airlines. 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. Focusing on online bookings.2.3. This section of the report proposes several marketing promotions for the airline to increase their sales. brand awareness. which would most likely be the case if a buy one get one free promotion were offered. This promotion could enable three consumers to travel at once for the price of two. 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. 4. 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. This promotion is based on a consumer or group of consumers purchasing two full fare return tickets and receiving a third one free.2. This promotion will be designed to run in May.2.3. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . or enable a single consumer who purchases two tickets within a month. 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. e-customer services and e-technology will be a major objective in achieving cost cuts. the benefit would be given to consumers in the way of cheaper tickets or special discounts. 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. general trends of leisure travellers. The free ticket will be restricted and must be used within a period of one month. Cost reductions Cost reductions can be achieved by reducing the office premises and ground staff the airline use. however they must still yield a profit for the service provided. 4. June. Thus. knowing that the Scottish travel market is a lucrative opportunity. and loyalty from existing customers beyond that which can be provided by advertising alone. July and August when target load factors are less than 60%. This will enable the company to draw huge amount of traffic.4. 4. to be offered the third one free. as the largest carrier for Turkey in the UK market is to expand its presence and extend the route network into Scotland. 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.

1 or 2 free nights at luxury hotels will be offered. This is designed to increase load factors above target load factors for these months but also to reduce distribution costs of tickets. Although business class travel is not a new product. comfort and in-flight services. through increased product innovation and quality. The airline method of providing its services is what differentiates its product and allows it to offer vast benefits. Manchester. to compete with its major competitors mainly based on price differentiation. Turkish Airlines product has improved to the highest level possible. as well as genuine gestures such as Istanbul sightseeing cards and chauffeur services to the existing economy and business class passengers.  Summary of Marketing Programs Marketing Promotion Apr Advanced Booking Price Promotion Three for Two Gifts for On-line Bookings Frequent Flyer Triple Points 4.com will be offered free Istanbul sightseeing tour cards or similar organised tours. 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.3. Birmingham and Istanbul.1. seats. June and Oct. such as space. May Period Jun Jul Aug Sep Oct Nov Dec CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . Product Turkish Airlines product is providing economy and business class travel between London. In April.London Metropolitan University Promotional Items for On-line Bookings All consumers who book flights in August through to December directly through www. For all business passengers on onward flights from Istanbul.thy. the airline will offer triple points on all bookings made on-line. 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. who would normally fly with LCC like Easyjet or Pegasus (leisure passengers) or British Airways (business passengers). 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.

and are consistent with the other variables in the marketing mix. Based on competitor pricing customers would be willing to buy at Turkish Airlines prices. the product will not be supported by extensive marketing campaigns such as T. etc.3. 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. which can cost up to £130.37% 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.e. it undercuts the realities of the marketplace for the product and service offered by its competitor operating out of London Heathrow. London. The type of promotions and advertising used will affect the price. make a profit.3. 4. however in order to keep prices low. That is a combination of direct sales and indirect sales through the internet.000 for a single advert in a prime time slot (4). CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .3.V.3. Airline Economy Fares Business Fares % cheaper than British Airways Economy Business 63.3% 70. adverts. promoting the airlines directly to the target audiences. Business trade shows and corporate travel agencies. Prior to the event the trade show will provide significant media exposure that will feature Turkish Airlines brand. The trade show will provide the airline with on site marketing and promotional exposure. However.London Metropolitan University 4. Pricing is influenced by the distribution channels used particularly in selling to corporate customers. as the low price does not act as a substitute for lack of product quality. Twitter. Other methods of creating awareness of the airline product will include sales promotions and presence at business trade shows.Price Table 5 below shows the online published fares of THY versus BA. 4.2. Turkish Airlines pricing strategies support the products positioning. Place A Multi-level marketing strategy will be employed to distribute the product. i.4. While Turkish Airlines pricing allows the company to achieve its financial goals. Business Trade Shows Turkish Airlines will have a comprehensive premier presence at Business Travel Trade at Excel. through negotiations the airline can achieve great results with its corporate clients. as well as social websites like Facebook.

Turkish Airlines will market and make direct sales via its web site. Direct Sales to Corporations In order to attract large corporations and medium sized businesses. Outdoor Adverts Important part of Turkish Airlines marketing strategy will be focused on advertising with leading corporate and travel magazines. The first class service will appeal to small to medium business managers who can afford to fly with British Airways. 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. 4. special discounts and incentives for regular passengers.3. Direct Sales to Secretaries and PA’s Often PA‟s and secretaries are requ ired to book flights for managers. Turkish Airlines must target these secretaries with direct mail so that they are aware of the Turkish Airlines product. 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. such as billboards. the airline will manage a team who will build relations with corporations. CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman .5. That will be achieved through extensive communication with its current customers. bus and underground posters. The website allows customers to make reservations for flights and provides purchase and payment capabilities. Social websites like Facebook and Twitter could create brand awareness and can be used as a marketing tool for promotions of the airline. 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. To do this. as well as outdoor advertising.London Metropolitan University Internet In order to attract UK leisure and business travellers. Business and Travel Magazines. as well as comprehensive information on offers. Customer Service Building substantial customer relationship will be the primary objective of Turkish Airlines. This allows for cheap and efficient distribution costs and reaches a wide consumer base. etc. Turkish Airlines will directly contact the travel departments of corporations and businesses in UK with links in Turkey. Corporate Travel Agents This has the advantage of offering customers a distribution channel they may prefer in making their reservation.

The most effective media is expected to be outdoor billboards and posters on buses and underground. Marketing will be media generated to the business and corporate accounts with combined media and direct sales focused to the leisure market. Reservations will be centralised and cost effective.London Metropolitan University 5. The advantage of a local and highly identifiable market is that media selections can be limited in scope. as well as to maintain its leadership position in the UK market. Based on all these actions. 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. Word count: 4712 words CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . as they have acted as a key generator of sales for other airlines. 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. Turkish Airlines can meet its challenges and act in order to achieve its set goals and objectives. etc. by popularising the official website of the airline. Conclusion Turkish Airlines market presence will be achieved by relying on the strategy of identifying and serving well both leisure and business market.

(2006).turkishairlines. 4 th edition. (2004).com (Accessed on 18 Apr 2010) (4) www.gov.en.org (Accessed on 13 Apr 2010) Turkey Visitors site: www.uk (Accessed on 10 Apr 2010) http://uk.reuters.com (Accessed on 12 Apr 2010) Pegasus Airlines: www. USA Doganis R.com (Accessed on 12 Apr 2010) Centre for Aviation: http://www.turkstat. “The Airline Business”.flypegasus.goturkey.centreforaviation. (2009). HarperCollins Academic.ba.com (Accessed on 13 Apr 2010) European Culture Capital: www.easyjet.London Metropolitan University References: Textbooks: Shaw S. “Flying off course – Airline economics and marketing”.skytrax.chewonthis. USA Web sites: Turkish Airlines: www. UK Doganis R.com (Accessed on 12 Apr 2010) EasyJet: www.com/ (Accessed on 21 Apr 2010) Turkey Tourism Authority: www. 5 th edition. Ashgate Publishing Ltd.skyscanner.com (Accessed on 12 Apr 2010) Emirates Airline Strategies: www. “Airline Marketing and Management”. Routledge Publishing.org (Accessed on 13 Apr 2010) Turk Statistic Institute: www.tr (Accessed on 17 Apr 2010) CA3002C Aviation Commercial Planning and Marketing Tutor: Nicholas Coleman . 2 nd edition.istanbul2010.com/article/idUKLDE63D176201004 (Accessed on 14 Apr 2010) Istanbul – Ataturk Airport: www.com (Accessed on 13 Apr 2010) (1) www.emirates..net (Accessed on 18 Apr 2010) (3) www.ataturkairport.org.tourismturkey.com (Accessed on 12 Apr 2010) (2) www.

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