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BU8501

Marketing for the 21st Century

Team
Presentation 2

1
SIA

Chosen COB:

Flight Schedule
Refocusing on Business Class
Rewards and loyalty program Improvements to Social Media Redefining Budget travel

Recap
Strengths
- Strong Brand Equity - Strong Cash position

Weaknesses
- Unbalanced Business Portfolio - Absence of domestic market - High cost of travel

SWOT

Opportunities
- Airline traffic on upward trend - Dominance in lucrative Routes - Strong alliance in Codeshare Agreement - Profit Boosters

Threats
- Budget airlines
- Similar league competitive airlines - Rising fuel cost

Market Research
Survey 50 Participants

Questions

Wide Income Grp

20 50 Years Old

Refocusing Business Class

Market Segmentation
Market Segments

Budget

Economy

Premium

Business

1st Class

Why Business Class?

What they look for

Convenience Connectivity Work on the go

Why Business Class?

Higher profit margin


Potentially large market

How do we market?

Who pays?
Business Class Travellers
100% 80% 60% 40%

20%
0% Paid by self Paid by company

How to market business class?

Market to companies Psychological Pricing Environmental sustainability

Lounges

Rewards & Loyalty Program

Meeting Customer Expectation

Service

Two way Communication

Value for money


Expectation vs results LCC & Full-fare carriers

Accountability

Safety, Punctuality, Baggage Handling

Feeling of Importance

VIP

Current Reward Scheme

Singapore Airlines KrisFlyer

Three tiers of membership

Different entitlements

PPS Club

Exclusive membership

High rate of earning points

Many ways to earn points

Recommendation: Improving Reward Scheme

Alternative way to spend miles earned

Flight awards and flight upgrades


Creating a online store

Purchasing miles

Using cash to buy miles Allowing miles to be transferred

Recommendation: Co-Branding

Create a brand partnerships with more companies

American Express Singapore Airlines Credit Cards

Companies from different sectors

Food and Beverages


Sports (Nike, Adidas) Skin Care Products

Social Media

Recommendation: Marketing through social Media


SIA not leveraging on the power of Social Media

Started their official facebook and twitter sites only in September 2011
Took over from a fan who founded the fan page

Other airlines started as early as 2008


Slow start to the social media market

Recommendation: Marketing through social Media

Leveraging on the power of Social Media

Community building through 'fan-base'

Building and increasing brand awareness


Customer interaction and support Increase click through rate to official website

Recommendation: Marketing through social Media


Additional service

Post details of its flight crews for each flights Passengers get to know their cabin crews before they fly Brings the airline closer to the heart of passengers

Redefining Budget Travel

Scoot ?

Market Segments

Budget

Economy

Premium

Business

1st Class

Have you taken budget flight before?


80% 60% 66% 34%

40%
20% 0% Yes

No

Market Segments

Budget

Economy

Premium

Value Budget

Service Budget

Business

1st Class

Budget: Satisfied with service?

80%
60% 40% 20% 0% Yes No 24%

76%

Budget: Why not Satisfied?


35% 30% 25% 20% 15% 10% 5% 0%
28%

32%

20% 8% 12%

Market Segments

Budget

Economy

Premium

Value Budget

Service Budget

Business

1st Class

Recommendation: Subsidiary: Budget Carrier

Market Segmentation
-

Distinctive: Premium vs. Budget

Launching Budget subsidiary is correct


-

SIA retains appeal to premium segment


Budget subsidiary captures budget segment
-

Free from undermining current position

Recommendation: PPS for Budget Carrier

Priority Passenger Service (PPS) for SIA


-

PPS for SIA Budget


-

priority check-in

priority check-in larger baggage handling

larger baggage handling


access to the SIA Budget Lounge

guaranteed Economy Class seats when waitlisted


access to the Silver Kris Lounge

Recommendation: More value for same budget


Extend existing SIA benefits (that would not erode its
position)

- Singapore Girl - The SIA Experience

- Real-time Flights update - Mileage for Reward schemes

Recommendation: Budget Carrier rides on SIAs success

Young Fleet
-

avg 7 yrs old, vs. other budget carriers avg 15-20 yrs old

lower maintenance costs


appeal to travellers

SIAs Flight operations


-

Economies of scale Maintenance

Recommendation: Budget Carrier rides on SIAs success

SIAs weight in industry


-

Better leverage in negotiations

Conclusion
Refocusing on Business Class
Rewards and loyalty program Improvements to Social Media Redefining Budget travel

Q&A