A

REPORT ON

ACKNOWLEDGEMENT

It is my proud privilege to express deep sense of gratitude

regards an appreciation to my guide , 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 Various 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.

CERTIFICATE
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 Singapore 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.

INTRODUCTION
Singapore Airlines (SIA) began in 1947 as Malayan (later
Malaysian) Airlines in a joint venture between the
Malaysian and Singapore governments, serving primarily
the South East Asian region. In 1965, Singapore
separated from Malaysia, and later the two governments
agreed to set up separate airlines. Singapore Airlines was
born in 1972. 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,
getting access to airports, securing flight slots and
landing rights, and attracting a new customer base.
Unlike most state-owned entities, 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, especially in the boardroom.
VISION:-

Singapore Airlines has a responsibility not only

to be an excellent company, but also to be an excellent
citizen of the world by enhancing the lives of the people
we touch. With that aim in mind, we have made many
commitments to the arts and education, to our
communities, and the health and welfare of our country's
citizens, and those in countries we fly to. With this goal in
mind, we've also made a strong commitment to
preserving the environment - 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.
CORE VALUES:THEIR SIX CORE VALUES:

Pursuit of Happiness
Safety
Customer First
Concern for Staff
Integrity

Team Work

GOALS:-

Singapore Airlines has a responsibility not only

to be an excellent company, but also to be an excellent
citizen of the world by enhancing the lives of the people
we touch. With that aim in mind we have many
commitments to the arts and education to our
communities and the health and welfare of our countrys
citizen .With this goal in mind; we have also made a
strong commitment to preserving the environment and
our world for future generations.

AWARDS AND ACHIEVEMENTS

Since Singapore Airlines first took flight, our
achievements have been recognized around the world.
We're proud of how far we've come, and humbled by the
tremendous support we've received. Singapore airlines
have won fourteen times The Asias best Airline award. It
is ranked 27 in Fortune Magazine.

STRUCTURE OF SINGAPORE AIRLINES

Singapore Airlines has diversified into related industries and sectors,
including ground handling, aircraft leasing, aviation engineering, air
catering, and tour operations. 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, 32 associated companies, and two joint
venture companies in the financial year ending 31 March 2007. SIA sold
all its equity share of 35.5% in a joint venture, Singapore Aircraft
Leasing Enterprise, to the Bank of China for US$980m on 15 December
2006. There have recently been suggestions to divest SIA Engineering
Company and Singapore Airport Terminal Services, two of SIA's largest
subsidiaries. Minister Mentor Lee Kuan Yew, for one, voiced his opinion
in December 2005 that Singapore Airlines should divest these two
companies to focus on its core business of air transportation. Although
Singapore Airlines has evaluated the divestment opportunity, no
tentative plan has been announced to date. Major companies in
Singapore Airlines Group include:

Company
International Engine
Component Overhaul
Private Limited.
SIA Engineering
Company Limited.
SilkAir (Singapore)
Private Limited.
Singapore Aero Engine
Services Private Limited.

Type

Joint venture

Singapore Flying College

Private Limited.
Taj SATS Air Catering.

Aircraft
overhaul

Singapore

41%

Subsidiary

Engineering

Singapore

81.9%

Subsidiary

Airline

Singapore

100%

Joint venture

Engine overhaul

Singapore

41%

Cargo airline

Singapore

100%

Singapore

81.9%

Singapore Airlines Cargo Subsidiary

Private Limited.
Singapore Airport
Terminal Services
Limited.

Principal
activities

Group's
Incorporated
Equity
in
Shareholding

Subsidiary

Holding
company

Subsidiary

Flight school

Singapore

100%

Joint Venture

Catering

India

50%

ALLAINCE OF SINGAPORE AIRLINES

Singapore airlines is a member of Star Alliance. In
order to become members, all airlines must comply with
the highest industry standards of customer service,
security and technical infrastructure.

FLEETs
Singapore Airlines operates a wide-body aircraft fleet
from five aircraft families: Airbus A330, Airbus A340,
Airbus A380, Boeing 747 and Boeing 777. In keeping with
its policy of maintaining a young fleet, which stands at an
average of 6 years 7 months as at 24 January 2010, it
renews its fleet frequently. The Boeing customer code for
Singapore Airline is 7x7-x12.
Years ago, the airline named its fleet according to aircraft
type. The Boeing 747-400s were called "Megatop", the
Boeing 777s were called "Jubilee" and the Airbus A340500s were named "Leadership". Names for airliners
previously flown by the airline include: "Superbus" for the
8 Airbus A300s, "Celestar" for the 17 Airbus A340-300s,
"Super B" for the 23 Boeing 747-200s, "Big Top" for the
14 Boeing 747-300s. Several of these names were pulled
officially from the mid-2000s under then CEO Chew
Choon Seng. No official name has since been accorded to
the newer A380s which joined the fleet in 2007.
Singapore Airlines has never painted an aircraft without
its tail livery. Even special liveries such as the Tropical
Mega top and the Star Alliance livery still retain the
signature stylized bird on their vertical stabilizers. The

total number of aircrafts of Singapore airlines is as

follows:

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 .

SERVICES OF SINGAPORE AIRLINES

Singapore Airlines have received numerous awards for
the standard of service it provides, the most recent award
being World's Best Cabin Staf at the 2010 World Airlines
Awards. It claims to be "The World's Most Awarded
Airline". In the 29th annual Zagat survey by US pollsters
in November 2007, SIA was placed first in both premium
and economy classes while additionally.

In-flight services
A) Singapore Airlines Suites:-

Singapore Airlines
Suites is a class available only on the Airbus A380. The
A380 flies to Hong Kong, London, Melbourne, Paris,
Sydney, Tokyo and Zurich. The product is designed by
French luxury yacht interior designer Jean-Jacques Coste
and consists of separate compartments with walls and
doors 1.5 m high. The leather seat, upholstered by
Poltrona Frau of Italy, is 35 in (88.9 cm) wide (with

armrests up and 23 in (58.42 cm) wide when armrests are

down) and a 23 in (58.42 cm) LCD TV screen is mounted
on the front wall. The 78 in (198.12 cm) bed is separate
from the seat and folds out from the back wall, with
several other components of the suite lowering to
accommodate the mattress. Windows are built into the
doors and blinds offer privacy. Suites located in the center
can form a double bed after the privacy blinds between
them are retracted into the ceiling.

B)Cuisine:-

A meal in Economy class, on a flight

from Los Angeles to Tokyo. Singapore Airlines offers
World Gourmet Cuisine in all three classes. Regional
dishes are often served on their respective flights, such
as the Kyo-Kaiseki, Shi Quan Shi Mei, and Shahi Thali
meals available for first class passengers on flights to
Japan, China and India, respectively.SIA has also
introduced a Popular Local Fare culinary programme
offering local favourites to passengers in all classes flying
from selected major destinations. Business and first class
passengers may also choose to use the "Book the Cook"
service on some flights, where specific dishes may be
selected in advance from a more extensive

c) flight entertainment system and communication:Singapore Airlines' in-flight entertainment system,

KrisWorld, was introduced in 1997. B747-400 and Boeing
777-200ER use the Wiseman 3000 system which offers
on-demand movies, audio and Nintendo games in all

classes. Passengers flying Singapore Airlines Suites, First

Class and Business Class receive active noise-cancelling
headphones. In March 2005, SIA introduced the
Connexion by Boeing in-flight Internet service, and the
system was extended to offer live TV in June. The service
ended in December 2006 when Connexion was ceased by
Boeing. From October 2005, SIA has offered free language
lessons in 22 languages and, starting December 2005,
live text news feeds. SIA announced that Panasonic
Avionics Corporation has been selected to create the new
Kris World, using their new eX2 system. [105][106] The new
Kris World is available on A380, A330-300, A340-500
(equipped with Business Class only) and Boeing 777300ER.
Widescreen LCD TV with 1280 x 768 resolution.
A range of movies,
interactive. programs .

TV,

music,

games,

and

Built-in office software, based on the StarOffice

Productivity Suite for use with the USB port.
In-seat AC power port.

Ground services:-

Passengers may check-in

between two to 48 hours prior to flight departure. This
may be done over the counter or at the lounge within the
airport (for first and business class passengers). Selfservice kiosks are also available at Singapore Changi
Airport. First class passengers also get a dedicated lane
at Changi Airport where staff will personally welcome and
escort them. Alternatively, they may check-in through the
Internet or by short message service. Online printing of
boarding passes is available through Internet check-in.
Passengers on short trips may also check-in on their
return flight upon departure from the city of origin.

Marketing strategy
1. Differentiation:The different thing about the
Singapore airlines is the Singapore girl which is there
to serve you. It is one of the important factor for the
success of Singapore Airlines. The personalization of the
Singapore Airlines brand is the mixed male and female
cabin crew, where especially the flight stewardesses
commonly referred to as Singapore Girls have become
very well-known. SIA engaged French haute-couture
designer Pierre Balmain at the inauguration of the
airline in 1972. 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. A

very designated and visual part of the entire brand

experience. 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 Singapore Girl encapsulates
Asian values and hospitality, and could be described as
caring, warm, gentle, elegant and serene. It is a brilliant
personification of SIA's commitment to service and
quality excellence. 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. 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 social status of the Singapore
Girl has also reached near-celebrity in Asia. 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.
The Singapore Girl

a) Place:-

Singapore airlines is available for

all the five continent as well as it goes to 35
countries. Thus
Singapore airlines
has
a wide
coverage.

b) Price:-

Its prices for economy class are

affordable. But have expensive business class and
first class.

c) Promotion:The Singapore girl is itself a

promotion for Singapore airlines. They are the
brand ambassadors of their company. Moreover it
has done various advertisement in TV, newspaper ,
internet etc.
d) Product:-

The Singapore airlines have most

advanced and new air crafts in there kitty. It does
not keep any aircraft which is older than 2years.
It changes its aircraft in every 2 years.

2. Segmentation:-

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). The objective
is to help determine marketing strategies and realistic
marketing objectives by understanding customer trends
and buyer behaviours. Once the market has been
segmented, 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.
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 SIAs business strengths. After the
organisation has identified and selected its target market,
the next stage for SIA is to decide how it wants to position
itself within that chosen segment.
Bases for segmentation with Singapore Airlines:
Geographic SIAs 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. SIAs strong presence in the Southeast
Asian region, with its subsidiary SilkAir, connects
Singapore to many international destinations in the
region. The airline has also established and captured
major markets in its Kangaroo Route, flying
international traffic into and out of Australia and

since 2005, frequent flights between Bangkok and

Tokyo. SIA can segment geographically in an attempt
to gain extended market share on transpacific routes
from Australia to the United States, as evidenced by
its proposed hub in North America through
Vancouver.
Demographics segmenting on the basis of
customer factual characteristics such as age, gender,
income etc. 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.
Psychographic attempts to capture what is
driving the customers behaviour, such as values,
personalities, attitudes 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 is 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 SIAs
Frequent Flyer program (KrisFlyer and PPS Club), in
return for consumer loyalty to the airline.

Buyer Behaviour:-

With the level of competitiveness

in the airline industry, an understanding of buyer
behaviour makes marketing strategy development and
value creation easier. Consumer behaviour is however
complex and dynamic because different products are
bought differently and as a result of different thinking.
Factors that influence it include a mix of social, cultural,
personal,
lifestyle,
psychological,
environmental,
education, occupation, motivation and beliefs and
attitudes to name a few. SIAs understanding of this could
enable them to develop more successful marketing mix
strategies.
Henry Asael in Kotler summarised the four different buyer
behaviours that require different responses from
marketers:
1. Complex buyer behaviour requires marketer to
provide more information and reassurance to a
customer. This is probably more prevalent in B2B
transactions with SIA.
2. Dissonance-reducing buyer behaviour requires
marketer not to provide any reason not to buy the
product and maintain consumer satisfaction. SIA
maintains this through their consistent delivery of
quality service in all cabin classes leaving consumers
with high satisfaction levels. The frequent flyer
program and lounge services further add value to
their level of satisfaction.
3. Variety-seeking buyer behaviour requires
marketers to provide a lot of options within their
range so it reduces the likelihood of the customer

switching to another provider. For example, SIA

provides a variety of options in cabin classes,
catering, in-flight entertainment, flight destinations
and even for budget-conscious customers, an option
with their Low-Cost Airline, Tiger Airways. These
days, access to service providers via the internet
enables buying decisions that involve low risk to be
compared more directly with competitors.
4. Habitual buying behaviour requires the
marketer to encourage as many people as possible
to trial their products so as to be included in their
habitual choice sets. SIA along with SilkAir has
established a strong presence in the Asian market,
managing regional flights to secondary cities with
smaller capacity requirements. The corporate sector,
as part of their business needs, is perhaps the most
consistent and habitual with flight bookings.
Upon a customer experiencing services from SIA, it is
equally important to understand how the customer is
satisfied by the service and/or product offered. This
provides invaluable insight on how the service and/or
product provided value for the customer as well as how
they chose it. Market research can be of assistance here.
3) Market Positioning:After segmenting a market and then targeting a
consumer (based on an understanding of their buying
behaviour), SIA can now position a product/service within
that market. Market positioning is about how SIA wants
consumers to perceive their products and services in
relation to their competitors. An understanding of market
positioning enables SIA to create positioning strategies

that result in an offer being seen by consumers as

attractive, filling a gap in the market, and providing the
organisation with some competitive advantage.
SIAs options are to:
1. Pursue the segment with an offer based on a current
product, or
2. Develop a new product offer that meets the needs of
the segment.
SIAs 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 SIAs
commitment to service and quality excellence. The more
senses the brand appeals to, the stronger the message
will be perceived.
At the other spectrum of the market, Tiger Airways
positioning is also very clear it is a pure low-cost carrier.
It pursued a segment with a low-cost offer and positioned
itself close to existing competitors like Jet Star, and Virgin
Blue, so consumers can make a direct comparison when
they purchase. It is operating successfully within
Australia, doing well in market penetration and turnover
against its competitors.

SWOT
ANALYSIS
AIRLINES

OF

SINGAPORE

1). Strength:SIA has been setting a good record

on operational performance and profitability. Even in
economic downturn in 1990, SIA was able to outperform
in posting profits.
High quality service :S IA

has always been frontier in

providing high quality services to its customers which
attracted a large number of flyers to SIA. It
Introduced electronic ticketing through websites.
Online ticketing was rolled out at all destinations in its
network.
Introduced automated check-in system on certain flights.
Silver Kris Lounge for first and business class people
offering peace and tranquility in the hustle and bustle of
the airport.
Provided top of the line business equipments such as
computers, fax services and a stock ticker.
Singapore Girl Image :-

The Singapore Girl

Image represented caring, comfortable and hospitable
service. This image was carefully nurtured as it

represented the brand of SIA. SIA paid great attention in

the selection process and training of the candidates
applying for the jobs. Apart from emphasized aspects of
passenger handling, social etiquettes and grooming,
these candidates also spent extensive periods of the
training program in homes for aged. This gained a better
appreciation for that segment. Taking advantage of labor
law, SIA had about 60% of the cabin crew as females.

Employee Training :-

SIA had pilots from over 50

countries. The company operated its own flying college
with eight flight simulators. All flight personnel were
required to go through biennial proficiency checks. The
complement of cabin crew was chosen through a very
rigorous process. SIA spent 14 times as much as other
airlines on per employee training program.
Strategy of differentiation:-

SIA has always been

keen in developing innovative options to attract
customers. The choice of meals in economic class,
innovative entertainment programs in the cabins then
became the norm of the major air carriers. SIA has always
provided the best of its service to its customers in the
best possible lowest price.
2) weakness:Sour Deals :-

SIA was somehow not able to form successful

partnerships. The deals which SIA expected to be fruitful
turned out sour. As New Zealand Government put money
into the company, the SIAs share in Air New Zealand

dropped dramatically and SIA lost about $157 million.

Also the 49% ownership deal with Virgin Atlantic which
cost SIA $1.6 billion was 40% of its value.
Virgin Blue, 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. Also the Government of Singapore
declared that although SIA is a national carrier, it wont
receive any subsidies or protection from the government.
It would have to develop based on its own resources.
International flights :-

Singapore Airlines doesnt offer

domestic flights. 100% of total transported passenger fall
under international segment. As of 2009, SIA carried
about 19 million passenger all of which were international
flyers.
Unbalanced Model:-

In addition to airline operations, SIA is

also handling airport terminal services and engineering
services. Although company operates in different
segments, the main revenue comes from airline
operations.

3) Opportunities:Enter into Low cost-operating airline:-

SIA can definitely

think of entering the low cost-operating airline service. If
this hampers the brand image of SIA, it can start with a
different name and/or brand. The profit of the low costoperating airlines is basically based on the cost savings in
in-flight services, higher fleet utilization, high load factor,

etc. SIA can earn a significant amount of revenue from

there.
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 5.3% to 7.9% annually. Even though
Singapores geographical location does compare less
favorably with cities like Hong Kong, steps must be taken
by Singapore Government and different segments of the
air freight industry to take advantage of new
developments.

4) Threats:Low cost operating airlines:-

Low cost operating airlines

definitely pose a great threat to SIA. The unbelievably low
air fairs for short distances. Even though these carriers do
not offer quality in-flight services, the business model
works great and can attract most of the consumers
towards it.
Rising Fuel Prices:-

Due to global rise in oil prices,

the aviation fuel prices have gone up substantially. The
Fuel operating cost for Singapore International Airlines for
4 years in $/ATK is shown below table.
Operating

2000

2008

2009

2010

Cost
Fuel

4.6

6.7

5.5

6.6

($/ATK)

These rising fuel prices may have immediate impact on

the companys margins making the operating expenses
high and having lowered sales.
Foreign currency rates:-

Since SIAs 100% customer

base is international, SIAs revenue is dominated by
foreign currencies exposing its margin to the threat of
volatility due to currency rate changes. Currency rate
fluctuations of Australian Dollar, Euros, and Japanese yen
have a substantial impact on the revenue streams of SIA.

PEST ANALYSIS OF SINGAPORE AIRLINES

The PEST analysis is one of them that are merely a
framework that categorizes environmental influences as
political, economic, social and technological forces.
Sometimes two additional factors, environmental and
legal, will be added to make a PEST analysis, but these
themes can easily be subsumed in the others.
Political factor:

This refers to government policy such as

the degree of intervention in the economy. What goods
and services does a government want to provide. To what
extent does it believe in finance firms such as Singapore
Airlines has withdrawn its bid for a stake in Air India,
dealing a heavy blow to the Indian government's

privatization programmed. This is a political barrier for

Singapore airline.

Economic factors:

These include interest rates, taxation

changes, economic growth, inflation and exchange rates.
The Singapore Airlines offer to buy a 24 percent stake in
China Eastern Airlines for 7.2 billion Hong Kong dollars
(US$923.8 million) appeared in trouble Wednesday after a
major shareholder criticized the deal as unfair.

Social factors:

Changes in social trends can

impact on the demand for a firm's products and the
availability and willingness of individuals to work. In the
year 2002 there was a fatal crash of a Singapore Airlines
flight SQ006 at Taipei's Chiang Kai-Shek International
Airport. Authorities blamed pilot error for the accident.
Singapore Airlines has accepted full responsibility for
the crash, saying it was obviously a case of pilot error.
The airline has offered $400,000 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. But facts have already begun to
emerge that point to a number of other causes, some of

which are directly linked to cost-saving measures by

airlines and airport authorities. The death toll has risen to
82 people with the death of a survivor in hospital.
Another 81 passengers were injured. This accident makes
societal effect on Singapore airline.

Technological factors:

New technologies create

new products and new processes. Organization must
have-to concern about the new upcoming technology.
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. In addition to
providing the world's widest first and Business Class seats
and a technologically advanced seat in Economy Class,
which makes the competitive advantage for Singapore
airline.

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:

Conclusion

Thus Singapore airlines is a company having strong

market position. It also
has 65 destination
in 35
countries. Because of all
these
efforts
Singapore
airlines have become the Asias no.1 airline. Moreover
they have 110+ planes in the kitty, making them to
reach the major corners of the world.
Singapore airlines does not have the domestic flyers.
Thus they should concentrate on the domestic part
also. And also it should increase its range in order to
reach other parts of the world.

BIBLIOGRAPHY

1. www.singaporeairlines.com
2. www.scribd.com
3. www.google.com
4. www.starallaince.com