COLLEGE OF MANAGEMENT AND ENTREPRENEURSHIP

In Partial Fulfillment of the Requirements for the Subject:

BUSINESS MARKETING

Submitted to:
Norberto M. Secretaria, Ph.D.

Submitted by:
Bucao, Ethyl Nicole
Dano, Shiena Mae
Fuentes, RG Lyn
Miranda, Nivea Mae
Santisas, Ivy Dianne
Tayad, Kristine Grace
Vitor, Hannah Lee
MARKETING PLAN FOR
CEBU PACIFIC AIR INC.

TABLE OF CONTENTS
EXECUTIVE SUMMARY
 SITUATIONAL ANALYSIS

MARKET SUMMARY
 Cebu Pacific Air, Inc. is an airline in the Philippines offering low-cost flights. They cater
to their Filipino home audience by providing low-cost flights to destinations with a high
concentration of Filipino overseas workers or tourists, with a laser-like focus on affordability. It is
based on the grounds of Mactan-Cebu International Airport, Lapu-Lapu City, Metro Cebu. Its
operating area is within the Philippines. In March 1996 the Cebu Pacific entered the aviation
industry and has been the Philippine’s leading airline that has entered the aviation industry.

In 2020, the fall of air travel demand and perplexing government policies resulting from
the COVID-19 pandemic resulted in massive financial losses. With that, Cebu Pacific was also
forced to downsize half of its employees, reduce services, and move unneeded planes wherein
Cebu Pacific suffered P22.2 Billion net loss.

Being the leading airline in the country, Cebu Pacific introduced web check-in, E-
ticketing, and seat selection in the Philippines that encourage travelers a more easy and
convenient way of booking their flight. Then on, Cebu Pacific continues to be the pioneer in
strategic marketing, wherein they imposed GetGo, a lifestyle rewards program that rewards their
passengers who are frequent fliers with travel benefits such as a free flight with Cebu Pacific.

Cebu Pacific Air, Inc. never fails to attract passengers with their marketing strategy
where they closed a partnership deal with companies that offer travel and tourism services such
as hotels and resorts, car rental and entertainment ticketing services, and travel insurance
companies to provide a more comfortable travel experience for their passengers.

SWOT ANALYSIS.

STRENGTHS

1.Product Innovation & High-Quality Meals

 Cebu Pacific Air A is a fast-growing company that has always respected its consumers
by providing them with high-quality meals. These meals are created according to the
preferences of the customers. Furthermore, these firms are personalized, and Cebu Pacific Air
A uses a variety of Cebu Pacific Air A flavors.

2.Reliable Distributors
Cebu Pacific Air A's suppliers are reputable and trustworthy. Furthermore, they deliver
raw materials and ingredients on time, which speeds up the supply chain management process.

3.Marketing & Promotional Advertisement with a Strong Capture

Through their emotional and strong message commercials, they have effectively
recorded the thoughts of their customers. Cebu Pacific Air A's psychological technique, for
example, is to market Mother's Day with a message to "enjoy your moms and dads no matter
what."

4.Fast and Reliable Delivery System

Cebu Pacific Air A is well-known for its quick delivery. They guarantee delivery within 30
minutes, and if the consumer does not receive it within that time, they will supply
"complimentary corp." They never, ever, ever, ever, ever, ever, ever, ever, ever,

5.Price Points
Consumers can get all of Cebu Pacific Air A's items at reasonable prices. Customers
can choose from a variety of sizes and deals from the company to suit their preferences.

6.Internal Dough Production

The company is making money on its own, without the help of any vendors. As a result,
it has become a Cebu Pacific Air A secret active ingredient.
7.Services to Customers
Cebu Pacific Air A's social media managers are available 24 hours a day, 7 days a week
on their websites and social media platforms, where they communicate with customers. It also
fosters a positive interaction between customers and franchisees.

8.Excellent Brand Equity

 Cebu Pacific Air A's key services were recognized by every consumer, resulting in
significant brand equity. Cebu Pacific Air A, on the other hand, solely makes high-quality
merchandise and provides 30-minute shipping, resulting in a solid brand image. This is due to
the fact that the company has a large number of loyal customers.

9.Employees with a high level of expertise

Cebu Pacific Air has created training and development programs for its employees in
order to improve their skills. The company has maintained its employees' motivation to work
because of its non-monetary and monetary benefits.

10.An Effective Distribution Network

Cebu Pacific Air A has successfully maintained its circulation network, which is the most
important strength, and has recently expanded its circulations to every corner of the globe in
order to sustain its worldwide market potential.

11.Established Business Model

Cebu Pacific Air A's business model is based on the concept of a cost-effective store. As
a result, their business model encompasses all activities carried out throughout the preceding
50 years, such as earnings, fees, supply chain and operations, earnings, strategies, and
functions.

12.Technology and Innovation Investment

Technology and advancements have an impact on corporate eateries as well. Cebu
Pacific Air A has joined forces with other technological firms.

13.Return On Capital Expenditure for Goods

Cebu Pacific Air A's increased financial investments in their services and products, as
well as developing fantastic franchisees/stores and investing in worker training, have resulted in
significant profit streams in previous years.

WEAKNESSES
1. Outlets are in short supply.
Cebu Pacific Air A has a large number of franchisees for order taking, however there are
no proper Cebu Pacific Air A dine-in restaurants anywhere.

2. Concerns about franchising

Because of the disloyalty of its franchise employees, Cebu Pacific Air A is having
challenges. Because there are so many franchises, it's difficult to keep track of each employee
that cheats.

3.Operational Challenges
Cebu Pacific Air A finds it difficult to manage its operations because franchisees are
located around the city.

4. High-tech is required.
The company's visions do not match the technologies they are currently using. As a
result, they must invest more in their ideas in order to compete in a crowded market.

5.Revenue
Cebu Pacific Air A has determined that its net earnings do not correspond to its actual
monetary assessments and forecasts. To improve its net performance and earnings, the
company must work on its sales.

OPPORTUNITIES

1. New Environmental Regulations

Cebu Pacific Air A may benefit much from the new environmental policies, since they will
be able to benefit more from innovation as a result of the smooth implementation of the policies.

2.Menu with Few Calories

 Customers will grow if Cebu Pacific Air A adds low-calorie meals to its menu. They can
produce low-calorie meals by using low-fat goods and reducing the amount of carbohydrate in
their recipes.

3. Cebu Pacific Air A is the third airline in the Cebu Pacific Group.
Cebu Pacific Air A has increased its global market share. According to statistics, Cebu
Pacific Air A shops and franchisees may be found in more than 85 countries. On a daily basis,
they prepare around 1.5 billion orgs for a variety of channels.

4.Changes in Demographics
Cebu Pacific Air A is also affordable to middle-class customers, as they have split their
market based on demographics.

5. Asian Countries' Population

Countries such as India, Pakistan, and China have high expectations for Cebu Pacific
Air A, praising the quality of their cuisine and spices. They appreciated the handcrafted nature
of the business as well as the quality of the ingredients used, such as cheese and meatballs.

6. Cebu Pacific Air A's New Preferences

Cebu Pacific Air A can broaden their appeal by incorporating flat business, and there are
many admirers of those kinds of pieces. It will also help Cebu Pacific Air A to introduce LAVA
cakes because its competitors, such as Cebu Pacific Air A, already have them.

7.Economic Changes
Because the ratio of employment in Asian and European countries is high, the clients
have strong purchasing power. Cebu Pacific Air A's excellent feature is that it is unaffected by
consumer purchasing power.

8.Consumer Behaviours in New Directions

Numerous opportunities have arisen as a result of the new trends in customer behavior.
They use cognitive advertisements to influence consumers' decision-making processes.
9. Inflation Rate Is Lower
Inflation rates are low in some countries. This aids in the management of the company's
expenses and rates.

THREATS

1. Direct And Indirect Rivalry

Competitors are posing a danger to Cebu Pacific Air A. Its direct competition consists
solely of companies in the manufacturing sector, although its indirect competition consists of
various fast-food chains.

2. Cebu Pacific Airlines has a significant competitive advantage.

Cebu Pacific Air A Has Dine-In Places Throughout The Middle East, Europe, and Asia
Cebu Pacific Air A has dine-in areas throughout the Middle East, Europe, and Asia. Cebu
Pacific Air A features small counters and no counters at all in several areas.

3. Pressures that are controlled

Every year, the federal government enacts new laws and regulations. As a result, Cebu
Pacific Air A has been under regulated pressure to provide pay to its employees and workers.

4. Expensive
Cebu Pacific Air's current operation and production entails a number of costly functions.
To avoid this threat, they can work on cost-cutting strategies.
5.An insufficient number of long-term contracts
The Cebu Pacific Air A suppliers provide raw commodities such as vegetables and
meats. This can be a major danger to a business's ability to produce.

6.Trends in Health Awareness and Consciousness

People nowadays prefer to eat nutritious, home-cooked meals rather than fast food.
Clients' health consciousness may have a direct impact on the company's sales.
COMPETITION

The top competitors of Cebu Pacific Air in the Aviation Industry in the Philippines are the
Philippine Airlines (PAL) and the Philippines AirAsia.

Philippine Airlines (PAL), a subsidiary of PAL Holdings, Inc., is the flag carrier of the
Republic of the Philippines and therefore the pioneer domestic airline of the country. within the
year 1941, a gaggle of businessmen led by Andres Soriano, one in all the country's leading
industrialists and it's the primary and oldest commercial airline in Asia operating under its
original name. Fast forward, Lucio Tan, a Chinese-born Filipino entrepreneur is now the
chairperson of PAL Holdings Inc. As you'll be able to observe in their logo, it highlights the flag
of the Philippines. Its main headquarters is found at the PNB middle in Pasay, Philippines.

PAL's success with "search" inspired confidence in deploying digital-only campaigns on

a worldwide scale. It means they're testing out search ads to scrutinize the web opportunity.
Since more people are more into online to research for his or her travel options or in purchasing
items are going to be done thru online, PAL find this online opportunity as their first stop or
experiment with "Search".

In early 2015, PAL gave Google an inventory of key routes they wanted to grow and
began a "three-wave test with search ads" to measure consumers' interest in PAL tickets online.
To place it simply, search became their best sales agent. They were able to bring their senior
staff on board with a fresh, digital-driven approach by connecting the efficacy of their search
advertisements to ticket sales. Following its success in search, the airline is now focusing on
digital marketing.

In 2019, Philippine Airlines (PAL) was awarded a 4-star airline quality rating by
SKYTRAX, an international shipping rating organization, and just received a 5-star rating from
the US-based Airline Passenger Experience Association for the year 2021, despite the
pandemic (APEX). This is a quality distinction that honors high levels of product and staff
service in many assessment categories for both the onboard and airport environments.

Philippine Airlines has paved the way for search success and gained recognition by
Skytrax and APEX. Meanwhile, Cebu Pacific, a low-cost airline, has successfully dominated the
Philippine domestic industry, capturing almost 60% of the market. This percentage is double the
quantity that its rival Philippine Airlines holds domestically.

The Company adopted the low-cost carrier (LCC) business model or called budget-
friendly low cost in 2005, whose strategy is to supply affordable air service to passengers. Cebu
Pacific was able to achieve record results and earnings last year thanks to this local success.
While the airline has been ready to attract a profusion of recent customers, it also greatly
benefited from lower oil prices.

Cebu Pacific, the country's largest low-cost carrier, was honored at the CAPA Awards for
Excellence in Aviation in Singapore with the 2014 Asia Pacific Low-Cost Carrier of the Year
Award.

Along with PAL, Cebu Pacific offers flights in both domestic and international
destinations. Cebu Pacific flies to 25 international destinations. However, PAL has more travel
connections to international destinations than Cebu Pacific. Yet, when it involves domestic
flights, Cebu Pacific is the best option since they provide cheaper prices which benefit the
passengers.

Despite the characteristics and capabilities of PAL, Cebu Pacific remains a pioneer in
creative pricing strategies because it manages to supply very cheap year-round fares for all its
flights. It paved its own thanks to success within the domestic market after launching the "low
fare, great value" business model strategy and gaining about 60% of the market share. This is
often an enormous success made by Cebu Pacific which garnered double the number that its
rival Philippine Airlines holds domestically.
 Another competitor of Cebu Pacific Air is the AirAsia Philippines. It was founded in
March 2012 and may be a local subsidiary of AirAsia Group Berhad that owns 40% of the
airline, whereas Filipino investors own the company’s remaining 60% stake. The corporation
relies in Kuala Lumpur, Malaysia and decided to enter the Philippine economy to assist the
industry and make new jobs.

AirAsia Philippines flies to 11 domestic destinations and 19 international destinations in

11 countries. While these figures don't appear to match Cebu Pacific's, AirAsia has subsidiaries
in many regions of the globe that provide flights to more foreign destinations.

According to the International shipping Association Operation Safety Audit (IOSA), both
airlines have passed the protection audit and are IOSA-certified. Cebu Pacific and AirAsia were
likewise reported to be off the EU Blacklist, indicating that no safety concerns had been lodged
against them. Both airlines have also maintained a zero record in terms of deaths thanks to
airline accidents within the past 10 years. Additionally, the International Civil Aviation
Organization (ICAO) country audit states that every airline’s country of origin meets ICAO safety
parameters because it also reveals that AirAsia scores 5/8, while Cebu Pacific gets 6/8.

Moreover, data from the Official Aviation Guide (OAG), the most important network of
travel data within the world, shows AirAsia Philippines having a slim lead over Cebu Pacific in
terms of annual On-Time Performance (OTP). AirAsia had a 63.1 percent OTP from June 2018
to May 2019, while Cebu Pac got a 56 percent OTP. This suggests that five to 6 Cebu Pacific or
AirAsia flights left and arrived on a day trip of ten, while four to 5 were late.

Two of the Philippine's biggest airlines, Cebu Pacific Air and AirAsia Philippines, take
credit for offering significantly cheaper flights than full-service airlines, with several trade-offs
when it involves cabin legroom and customer service. supported customer reviews posted
online and data from trustworthy institutions, this Battle of the Brands edition contrasts these
two biggest budget airlines within the Philippines. In terms of flight routes, the perfect airline for
you is the one that flies to your required location on your preferred timetable.

Flying with a low-cost carrier like Cebu Pacific or AirAsia has its advantages and
downsides. The most effective airline for you may be determined by a simple price. Other things
that are important to you need to even be considered. It may be a matter of safety or having the
ability to depart and arrive on time.

PRODUCT OFFERING

Cebu Pacific is Certified as a 3-Star Low-Cost Airline for the quality of its airport and
onboard product and staff service. Product rating includes cabin comfort, baggage / seat
charges, buy onboard food & beverages, cabin cleanliness, and service rating is for cabin and
ground staff. It provides scheduled air travel services and cargo services. Cebu Pacific, through
its partners, provides tours , hotel booking services and car booking services and wireless in-
flight entertainment system.

Onboard food Cargo services

Web check in , E-ticketing GOOD staff services

 Cebu Pacific is the first local airline to introduce web check in and e-ticketing to provide
its passengers a more convenient travel experience.

Cebu Pacific also preferred air cargo carriers in the Philippines, linking islands together
through the exchange of goods. It provides competitive, fast, flexible and straightforward air
cargo service to an extensive network, including individual shippers and cargo agents within the
country and overseas.

Cebu Pacific is a low-cost airline based in the Philippines. Cebu Pacific meals are not
included in the price of your ticket. However, inflight meal options include items such as savory
light snacks and drinks. Passengers can pre-order a range of meals and all meals served on
Cebu Pacific .

A total of five aircraft have been equipped with the SKYfi club product for the trial, and
passengers will be able to stream music and movies, and view magazines and surveys using
their own smartphones, tablets and laptops.

DISTRIBUTION

Cebu Pacific Air is strongly positioned as the country’s premium “Low-Cost Carrier”
(LCC) with its motto “Low Fare, Great Value.”. It is also acknowledged as the only airline that
guarantees a “Fun Flight Experience” because of its entertainment and games during the flight.
Additionally, Cebu Pacific Air offers the most routes per day and has the youngest fleet age.

As the fast growth of the digital world, Cebu Pacific's main distribution channel is the
internet. They make use of the technology as they introduced the web check-in, E-ticketing, and
seat selection in the Philippine aviation industry. This method allows passengers to book their
flights online which is very convenient for them. Through this, airline customers will no longer
have to print their tickets for them to board the aircraft because they can just store their ticket
information on their phones or any gadgets through a phone feature called screenshot and the
airline teller will just scan the QR code of their ticket during check-in.

However, despite the increase of online booking customers, there are still physical booking
sales offices and outlets that allow people who aren’t tech-savvy to still book their flights without
the use of the internet.

To grow online brand recognition, Cebu Pacific Air leverages on its strong e-commerce
website that is reinforced by joining social networking sites such as Facebook and Twitter in
order for them to advertise sales promotion. They also use word of mouth, public relations, and
events and experiences as a form of sales marketing which is very strategic for an airline
company.

Consequently, Cebu Pacific Air along with its tagline “It’s time every Juan flies”, is a very
competitive airline company that allows everyone to experience the adventure on air. Their
strategic way of marketing and distribution is impressive because they were able to adapt to the
trend of the new-technology which helps passengers to be in comfort. From its convenient
method of booking flights to its popular “Fun Flight” experience, Cebu Pacific Air is undoubtedly
the premium airline in the country.