Final Assignment

Jannatul Nayeem
1611482030
MKT 465.5
Spring 2020
Regent
Step-1: Current Industry Analysis

1. Industry Size: BDT. 46627509500.00 (DATABC.C., 2020)

2. Major SBUs: (Flightexpert.,2020))
a. Sky Air Airlines
b. NOVOAIR****
c. United Airways****
d. Regent Airways****
(FlightExpert., 2020))
i. Kuala Lumpur to Dhaka
ii. Kolkata to Chittagong
iii. Dhaka to Coxs Bazar
iv. Bangkok to Chittagong
v. Muscat to Chittagong
vi. Dhaka to Singapore
vii. Dhaka to Kolkata
viii. Muscat to Singapore
ix. Chittagong to Muscat
e. Biman Bangladesh Airline *****
f. Royal Bengal Airline
g. US Bangla Airlines ****
h. Fly Emirates**
i. Fly Kingfisher**
j. Thai airways
k. Turkish Airlines
3. Related Business (Supply Chain):
a. Horizon Jet Charter Inc. (https://www.private-jet-charters.co/y-bangladesh.html)
b. Biman Flight Catering Services (http://www.bfcc-bd.com/)
c. SGS-Airport cleaning services
(https://www.sgsgroup.com.bd/en/transportation/aerospace-and-aviation/aviation-
ground-services/airport-cleaning-services)
d. Intui.TRAVELtransfer
(https://en.intui.travel/transfer/bangladesh/dhaka_hazrat_shahjalal_airport/)
e. Liberty Bangladesh-Aviation Consultancy
(http://libertybangladesh.com/abib2.php)
f. ASL System (https://www.asl.aero/)
4. Major Competitors (SBU wise)
a. United Airways
b. US Bangla Airways
 c. NOVOAIR
d. Biman Bangladesh Airlines

5. % sales drop in last 3 months: 70%

(https://tbsnews.net/economy/aviation/aviation-nosedives-corona-fallout-56905)

(https://www.lightcastlebd.com/insights/2020/05/13/the-airline-industry-under-severe-threat-
due-to-the-covid-19-outbreak)
a. Biman Bangladesh Airlines (70%)
b. US Bangla (60%)
c. Total loss: BDT. 400 Crore

6. Expected Losses: 37%-this year- $88b

(https://bangladeshmonitor.com.bd/news_update/2223/Airlines-of-Bangladesh-in-turmoil-due-
to-COVID-19)
STEP-2: Adaptive Product Disruption, and Branding Strategy:
A. Consumer Profile : Regent Airways (http://www.flyregent.com/)

Geographic Demographic Psychographic/ Behavioral

Area:
Domestic (Urban), Global Age: 22 to 65 (young adults, Attitude towards the product
(Urban and Suburban) and adults) category and brand:
Location: Moderate (3.5/5)
Domestic Gender: Male, Female,
1. Dhaka Others
2. Chittagong Lifestyle:
3. Cox’s bazar Income (monthly/family):  Interactive party
 Domestic: Monthly animal
BDT. 1, 50,000 and  Outgoing socializer
Global: above.  Rushing adrenaline
1. Kuala Lumpur  Global: Monthly addicts
$5,000, and above
2. Kolkata  Unexcited Romantics
3. Bangkok Family size:
4. Muscat  Nuclear
5. Singapore  Joint Personality Traits:
 Single  Competent
(Successful,
Education: accomplished,
 University (All influential,
levels of higher Innovative, A leader)
studies)  Sophisticated
(Elegant, Prestigious,
Pretentious)

Preference:
Occupation:
 Elegant
 Entrepreneurs commercials
 Executives  Social media
 Graduates Advertisements
(Facebook,
Instagram,
Snapchat, Twitter,
etc.)
 Print ads on social
media, business
magazines, dailies

Values:
 Hierarchy (Social
power)
 Intellectual
Autonomy
(Freedom of
thoughts, curious,
creative, and
innovative)
 Mastery (Successful,
ambitious,
competence,
confident)
 Affective autonomy
(Freedom of action)

Benefit:
 Affordable
 Comfort
 Empathetic (Service)
 Convenient

Volume:
once in every four months

Loyalty Types:
  Split loyalty
 Switchers

USP:
Every little things count
Functional PoDs:
 Comfort
 Safety
 Reliability
Emotional PoDs:
 Excellence
 Quality

Usage Situation:
 Business travel
 Vacation tour
 Family Tour
 Honeymoon
 Medical Conditions

 Purchase
Situation/Context:
Convenient travelling
 Economic journey
 Safe journey

B. Product Disruption Strategy:

Local: Low Price Entry (Regent-savior)
Ex
Brief description: Regent will lower the cost by optimizing its Supply chain and
logistics by running new business model that will encompass-
 Digital Behavior: Digital concentration and interactive communication.
(https://worldaviationfestivalblog.com/strategies-for-the-post-covid-19-future-of-
airline-travel-retail-and-fb/)
 Digital Health Passport: Completely human labor less processing in
travelling. (https://www.weforum.org/agenda/2020/05/this-is-what-travelling-will-
be-like-after-covid-19/)
 Collaboration: Privatization and collaboration with government. A mixute of owned
and leased aircrafts to operate. (https://www.weforum.org/agenda/2020/05/this-is-
what-travelling-will-be-like-after-covid-19/)
 Bringing ATF under GST (https://www.mumbailive.com/en/business/world-post-covid-
19-what-is-next-for-aviation-49160)
 Neglecting profiteering where possible (https://www.simon-
kucher.com/en/blog/covid-19-and-airlines-start-planning-recovery-now)
Justification:
1. Consumer behavior has been severely affected by the pandemic situation.
People of Bangladesh are focusing on saving money more by spending
only necessity goods and services rather than shopping, and high
involvement products. (https://tbsnews.net/economy/industry/shift-consumer-
behaviour-silver-lining-e-commerce-firms-72835). Therefore, people will look for
less expensive means of travelling on air.
2. Since the local market is shrinking, therefore, it will be wise for the
company to adapt
International: Improvement (Regent +Digital= Regental)
(https://www.bcg.com/publications/2020/post-covid-airline-industry-strategy.aspx)

Brief description: Regent will go under significant improvement at international

market to a response to post covid-19 recession impact with following features-

o Less passenger/flight
o Safe travelling
o Touch-less travelling
o Automated technology
o Digital behavior and omnichannel option
(https://worldaviationfestivalblog.com/strategies-for-the-post-covid-19-future-of-
airline-travel-retail-and-fb/)

o Re-assurance of customer’s health (https://www.simon-

kucher.com/en/blog/covid-19-and-airlines-start-planning-recovery-now)
 Justification:
1. This pandemic has increased the ever-lasting health concerns of people all
over the world.
2. International target market will consider a more hygienic and digital
travelling.

7 factor Analysis Description Local Justification (Local) Inte Justification

rnat (International)
iona
l
Salience New extension 5 Parent Brand POD: 7 Improvements
to parent Quality justifies parent
Brand New Extension POD: brand’s vision-
Cost Savings quality
(so, salience is not good
enough)
Favorability New extension 5 Customer review: 3.5 6 Customer review:
to parent out o 10 3.7 out of 5
Brand (Affordable rush
tour)
Uniqueness/POD New Extension 6 Most airline will cut 7 Global concern of
down price health
Compelling Solution to 7 TGs will spend less 8 Global market will
TGs (cost saving) focus more on safety
and digital
travelling
Relevance (To Alignment 8 Customer will seek 7 Customer will seek
lifestyle) with TGs affordable lifestyle changed
demand environment
Consistent Parent Brand 5 Quality and Cost 7 Quality and
Boundary savings are challenging Improved travel
aligns
B. Growth Strategies
 Strong Sales forecast 4 People will use cheaper 6 People will use safer
means of travelling means of travelling
Total - 40 Rejected 48 Accepted
Chosen Extension: International

Brand Development: Line Extension

PRODUCT CATEGORY

EXISTING NEW
EXISTING

Line Extension Brand Extension

(Regental)
BRAND NAME

New Brands
NEW

Multi Brands

Product Strategy
 PRODUCT

EXISTING NEW
EXISTING

Market Product
Penetration- development
Regental
Market

Market Diversification
NEW

Development

C. Secondary Leverage Strategy : Strategy – Other Brands- (Ingredient co-branding)

(http://www.airlinetrends.com/tag/co-branding/)

Focus:

i. Compartment-based passenger seat

ii. Touch-less digital travelling
Co-branding with companies:
 Kuala Lumpur: Sutra (https://www.sutra.my/): Travel Agency to catch traveller’s
attention
 Kolkata: ITC (https://www.itcportal.com/): Sustainability program company that aligns
with new extension goal.
 Bangkok: Chevron (https://www.chevron.com/) Popular business organization to
capture more corporate travellers
 Muscat: Gulf Talent (https://www.gulftalent.com/companies/parsons-international):
International Solution company- to capture global attention
 Singapore: SBF (https://www.sbf.org.sg/sbf-to-lead-inaugural-business-mission-to-
bangladesh-to-explore-opportunities-in-infrastructure-and-consumer-sectors): The
Company has strategic business alliance with Bangladesh.

Step-3: Communication Strategies:

 a. SMART Objectives

Specifics Print Ads Sales Digital Mobile PR/ Support TVC

Promotio Marketing Marketing Publicity Media
n

Awareness 35% 9 45% 3 70% 9 40% 7 20% 4 30% 4 35% 3

months months months months months months month

Interest 30% 8 35% 3 60% 7 35% 5 15% 4 25% 3 30% 2

months month months months months months months

Evaluation 25% 7 30% 3 50% 6 300% 4 12% 3 22% 2 25% 2

months month months months months months months

Trial 20% 6 25% 3 55% 5 25% 3 11% 2 20% 2 20% 3

months month months months months months months

Adoption 15% 7 20% 3 40% 7 20% 3 10% 3 15% 3 15% 3

months month months months months months months

b. Media List
a. TV
i. Kuala Lumpur: Astro TV
ii. Kolkata: ABP Ananda
iii. Bangkok: Channel 3
iv. Muscat: Oman TV
v. Singapore: Channel 5
vi. Bangladesh: NTV, BBC Bangla
b. Dailies
i. Kuala Lumpur: The Star
ii. Kolkata: Anandabazar Patrika
iii. Bangkok: Bangkok Post
iv. Muscat: Muscat Daily
v. Singapore: The Straits Times
vi. Bangladesh: The daily star, Prothom Alo

c. Magazine
 i. Kuala Lumpur: City Guide
ii. Kolkata: Anandamela
iii. Bangkok: Timeout
iv. Muscat: Oman Magazine
v. Singapore: Singapore Business Review
vi. Bangladesh: The star, Canvas
d. Digital Media
i. Regent Website
ii. Social Media (Facebook, Instagram, Snapchat, Twitter, Pinterest,
Youtube)
iii. Mobile Application (Existing one with new fun feature)
e. Billboard
At all main route airports.

f. PR:
i. At all capital city (TGs) central markets
ii. Bangladesh: Dhaka Business Fair
g. Support Media:
i. At all capital city shopping mall (TGs)
ii. Bangladesh: Jamuna Future Park

c. Budget Time, Estimated people to cover

Items Time(Months) Population Coverage Estimated Cost (USD-
(million) million)
TVC cost 24 70 5
Newspaper 24 20 2
Billboard 24 30 0.5
Digital Media 24 80 7
Public Relations 2 10 .2
Event Campaign 2 5 .1
Sales Promotions 2 30 1
Miscellaneous 24 - .05
Evaluation & 24 - .05
Control
Total Cost 24 24.5 16.5

d. Sales Promotion Key

i. Price offs: 20% discount for two months
ii. Coupons: 10% discounts for customer frequency 2 travel/month
iii. Event Sponsorship: Dhaka International Trade Fair (DITF)

f. CSR
a. Cause-related marketing
i. Donation of $2 directly to WHO (Orphans Fund) for food, and the
person who is getting it can be tracked. Since post covid-19 recession
will generate more food crisis.
g. SEO PR
a. Online SEO
i. Search engine (Webmaster tool)
ii. Keyword research
iii. Site optimization
iv. Site content optimization
b. Offline
i. Blog post and backlink building (Both live and dead links)
ii. Content creation (articles, and blog) in Mahsable business blog
iii. Referrals (e.g. Amazon referral programs)
e. Interactive Content

1. Print Media

Regental- Now you can

travel touch-less

20% off

Scan to get offer

2. Digital Media (SMM, Website, and Mobile Marketing)

 Regental- Digital travelling

Your money will feed

them. Donate $2

Regental- Now you can travel touch-less

3. PR (Event Sponsorship)

Regental- Digital
travelling

Footprints here with regental

Blog Post
 13 Reasons why you should
change your aviation business
model

Click to read

Digital
Travelling
Reference
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Bangladesh's healthcare system. Retrieved from
https://www.bd.undp.org/content/bangladesh/en/home.html
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The Business Standard. Retrieved from
https://tbsnews.net/coronavirus-chronicle/covid-19-
bangladesh/coronavirus-devastates-shoe-industry-79930

3. Shawon, A. A. (2020, April). PM: Educational institutions

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schools-and-colleges-might-be-closed-till-september Desk, A.
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