BSBA-II

MICROECONOMICS
SIR.CALUYA

CASE STUDY

Creating and Capturing Customer Values

Pegasus Airlines:
Delighting a New Type of Traveling Customer

Submitted by:
Argote, Samuel F.
Juan, Glaizza Camille
BSBA-II
MICROECONOMICS
SIR.CALUYA
Table of Contents

Brief Summary of the Case

SWOT Analysis
Competitor Analysis
Discussion of Theoretical of Concepts
Questions & Answers
SUMMARY
BSBA-II
MICROECONOMICS
SIR.CALUYA
Brief Summary of the Case

 Pegasus Airline was founded in MAY 1989 In Turkey.

 In 2008 Pegasus carried 4.4 million passenger.
 The people who work here don’t think of Pegasus as a business.
 They think of it as a crusade.
 Pegasus refers to itself as the “DELIGHT TRAVEL” airline
 Pegasus have had strong competitors

(SAM)

SWOT Analysis
Strengths
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MICROECONOMICS
SIR.CALUYA
 Strong Management
 Online Service
 Pricing Power
 Financial Leverage
 Supply Chain
 Size Advantages
 Technology
 Cost Advantages
 Brand Name

(CAMILLE)

Weaknesses

 Public Relations
 High Staff Turnover
 Customer Service

(SAM)

Opportunities

 Online Market
 Innovation
 New Services
 New Technology
 Emerging Markets
 Loosening Regulations
 New Products
 New Markets
 International Expansion

(CAMILLE)

Threats

 Other Means of transportation

 Volatile Currencies
 Intl Competition
 Intense Competition
 Goverment Regulations
 Political Risk
(SAM)

Competitor Analysis
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MICROECONOMICS
SIR.CALUYA

Domestic Competitors International

Competitors

(CAMILLE)
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MICROECONOMICS
SIR.CALUYA
Discussion of Theoretical of Concepts

Truly Customer Focused

 Develop to meet customer expectation and priorities.
 Put in place a yield management strategy for ticket pricing.
 Developed policy of customer satisfaction guarantee.
 Offers customer service experience at the airport.
 Operated a one class interior configuration.
 Provide 10% discount offer to international flights.
 Provide training and technical services for other local airline.
 Won “Best airline business price” in 2006 for innovative customer service.
 Achieved the most searched airline in Turkey on Google.

More than Amenities

 In 2007 Pegasus was recognized as one Turkey top brands.
 Select people to exhibit those values while directing the right person to the right department at
the right time.
 Share plans with Air Berlin and IZ Air.
 Has charter and scheduled service to 70 airports in Europe and Asia.  Maximizing Turkeys short
fighting opportunities and promoted strong reaction.
 Changed the preference of air travelers.
 Developed its intern market over 19 destination within Turkey.
 Term of weekly seat capacity, Achieved top 30 among European airlines.

Love Your Customers

 Aims to keep up with it customers even they are not flying.  Website titled “Pegasus listen to
u”.
 Ensured successful service through safety, training and developed employee.
 Creative Communication with its customer.
 Offer great destination and easy access to international hubs.
 Uses efficient management techniques, delivering low prices with a high quality service
experience.

(SAM)
BSBA-II
MICROECONOMICS
SIR.CALUYA
Questions & Answers

1. Give examples of needs, wants and demands that Pegasus customers demonstrate,
differentiating these three concepts

Needs:
What the Pegasus customer wants more service in terms of social network relationship. In the social
networking sites, they provide various gaming options which give their customers additional facilities
like free tickets and discounts. What customers want is the better quality of service and nor facilities to
be provided.

Wants:
The want of the customer of Pegasus is that the company must provide safe travelling along with
economically affordable price of ticket. The customer wants their airline to provide types of facilities like
good food, easy check post etc. Apart from these the customer also expects services that would be time
saving without trouble and solving their grievances as earlier as possible.

Demand:
What the customer demands from Pegasus is low cost of travelling, safe journey and effective services.
In order to serve their customer Pegasus provides certain services like E-tickets, communication via
internet like messaging or mailing.

Differentiating the needs wants and demands:

The needs are what the company must provide, the want is what the customer wants and the company
should think of it, and the customer demand is what the company should look after. What customer
wants are facilities from Pegasus even without travelling in it. What customer demands and need is the
minimum service that Pegasus provides (Shaw, 2007). Safe journey is not only what customer wants but
they also need to have a safe journey.

We can conclude the implications of each for Pegasus’ practices are customer-oriented company. In
other words, they want to meet customer’s expectation.

(CAMILLE)
BSBA-II
MICROECONOMICS
SIR.CALUYA
2. Describe in detail all the facets of Pegasus’ product. What is being exchanged in a Pegasus
transaction?

Facets of Pegasus’ product

Pegasus is the first Airline of Turkey that was of low cost. They have credit card that reduces their
insurance rates. Apart from that they provide Electronic Ticket policy which gives information via text
message and email in order to make communication with customers effective.

They provide facility similar to the procedure followed by other flights. Here the customer gets relatively
low price cost for the tickets if they book as early as 60 days before travelling. They offer Cards for credit
loyalty that help the customers to decreases the insurance rates (Pegasus.co.uk, 2015).

Amenities such as Hotel partners, parking facility, discounts & offers, in plane bulletin, Etc. are also
provided. Their main aim is to provide efficient hospitality with their potential customer crew.

They try to maintain relationship in Social networking sites in order to remain in touch with their
customer for efficient CRM and increasing customer loyalty.

Pegasus provides all kinds of supplementary, like an operation of one class interior configuration where
the customer can pay small premium price. 10% discount to passengers of International flights. It has
Pegasus Flying café where a various range of refreshments are available.

(SAM)
BSBA-II
MICROECONOMICS
SIR.CALUYA
3. Which of the five marketing management concepts best applies to Pegasus?

Production Concept:
This is one of the earliest forms of notion in business marketing .This perception is based on the
fact that customers prefer only those products which are economical in price and are available
widely. This type of concept is thriving in almost in every developing country, where the prime
concern for customers lies in acquiring more form the product than in its features. Pegasus has
a yield management strategy for pricing of tickets, where those who books the flight 60 days
before they receives savings.
Product Concept:
According to this concept the customers favor simply those services and products which
present the increased quality, effectual performance or possess innovative features. Like the
system of Pegasus electronic policy is well appreciated by the customers. This can be
considered as one of the quality of Pegasus Airlines.
The Selling Concept:
The selling concept of marketing is based on the reality that the businesses and the customers,
if left unaided, will typically not purchase sufficient amount of the products. The company
should therefore carry out an adamant promotional and selling strategy. The Supplementary
provided by Pegasus along with their travelling service proves to be efficient strategy to attract
more customers.
The Marketing Concept:
The marketing concept is more effectual in the communication, deliverance and creation of
standards to its target customers and in the success of managerial objectives which also helps
to have competitive advantage over others. The Marketing Concept focuses mainly on the
requirements of the customers; Pegasus is one such company who are truly customer focused
and loves their customers. They have provided various facilities for their customers.
The Societal Marketing Concept:
The concept of societal marketing is that the role of the business group is to decide the wants
and necessities, preferences and tastes of the target market. Pegasus has partnership with
hotels and they also provide parking facilities to their customers, this idea was initiated after
conducting various surveys and getting customer feedback.
(SAM)
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MICROECONOMICS
SIR.CALUYA
4. What value does Pegasus create for its customers ?
The value created by Pegasus for its customers is that they promote wellbeing of all. They provide
integrity in their service, q good quality of their products and services, on time delivery valuing the time
of their customers and provide a safe communication.

(CAMILLE)
BSBA-II
MICROECONOMICS
SIR.CALUYA

5. Is Pegasus likely to continue being successful in building customer relationship ?

Pegasus is likely to continue being successful in building a good customer relationship because Pegasus
service and product is totally customer oriented. They provide service and products according to
customers‟ needs, wants and demand. Because it ensures successful service, engages creative
communication policies and uses efficient management techniques.

(SAM)
BSBA-II
MICROECONOMICS
SIR.CALUYA
SUMMARY

Pegasus Airlines is a relative newcomer to the up and coming Turkish flight market. Operating out of a
secondary airport near Istanbul may have appeared to be a distinct disadvantage, but the airline has
turned this to its advantage by surpassing average on-time departure times. In addition to this, the
airline has sought to differentiate itself from the conventional airlines by adopting many of the features
of budget airlines operating throughout Europe. By positioning themselves as a low- cost carrier, the
airline has been able to achieve sustained growth even in times of economic uncertainty. The primary
focus of the airline is customer service, by putting this aspect of their operations front and center, they
have avoided many of the difficulties that other airlines have faced with dropping passenger numbers.
By running a series of incentive schemes, linked to improve and sustained high customer service levels,
Pegasus has a strong relationship with its customers. The airline has also made extensive use of social
networking sites, rewarding customers for participation and feedback. By combining low fare with
excellent customer service, Pegasus has shown that it can generate steady profits. In ensuring that it
caters for the exact needs of customers it has become a powerful player in the emerging Turkish airline
market.

(CAMILLE)