British Airways Marketing Case Study
British Airways is the flag carrier airlines of the UK with headquarter situated in the London, Heathrow Airport. It comes into existence by the alliance of four separate companies named as BOAC, BEA (London air passenger carriers), Cambrian Airways, Cardiff and Northeast Airlines, New castle in 1974. The company got privatised in the year of 1987. British airways have expanded through buying British Caledonian and Gatwick carrier Dan Air. They gave their main and huge order of A320 airplanes and is now the biggest buyer of Boeing aircrafts. They place their second largest order to start long distance flights in the 2007.
So, with this huge development in the company, let’s see the marketing strategy, plans and objectives of the company by analyzing the marketing mix of the company. Also, this British airways case study will provide the knowledge of strengths, weaknesses, opportunities and threats of the company through SWOT analysis.
Marketing Strategy of British Airways
Marketing strategy is the way of achieving marketing objectives through evaluating 7Ps of marketing or marketing mix. Here we are only going to address 4Ps of marketing in this British airways marketing strategy 2021 i.e. Place, price, promotion and product.
The product is therefore the crucial principle of marketing. Without any product, it cannot be decided what marketing plan or strategy has to be implemented and for whom. Product is the best resource through which customers gets attracted if it has the necessary power. On the other side, British airways get awarded with official 4 stars ratings because of the high-class products and services they provide to their customers.
In the British airways strategy during covid-19, the company have very low prices in their services. The pricing strategy of the BA is strongly, categorically and confidently believed to address the customer base of the company by online ticket booking system at BA.com with full confidence in the lower rates they provide. If any other Airline Company puts their prices lower than British airways anywhere online, they ensure to refund all the extra prices even if customer books online.
How do British airways advertise? British Airways is well known to provide different types of vouchers and coupons to offer discounts to their customers. They focus to offer discounted vouchers with codes on them for the customers even if they are not part of club members. This only requires registration for the once to become a member of the club. They also offer special rewards to make benefits of the customers in the long term.
Moreover, in British airways digital marketing strategy, they have some instant holiday packages not only in the cheap flights but also for the rented cars in order to make happy customers and increase loyalty towards them. However, in order to get vouchers and special rewards, the customer needs to travel and fly in their aircrafts and collect the BA miles points. These points can also be collected through flying with the partner airlines and staying in the selected hotels. All these points would be added and ultimately customers can enjoy the benefits and rewards they get.
British Airways have the huge network across the globe and serving their services across the six major continents which includes about 371 destinations. However, main hub of the British airways is located at the Heathrow in London which also handle majority of their flights at London Gatwick Airport. However, previously British airways used to have its main hub in the Manchester Airport which got moved to London Heathrow later on.
British airways target market
British Airways segmentation, targeting and positioning refer to ways in which the airline company identifies certain individuals among the general public to offer their service packages. Segmentation involves dividing the population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment.
British Airways follows a multi-segment concentration marketing strategy by offering four different service packages to different customer segments. Specifically, British Airways targets different customer segments for its four levels of services: economy, premium economy, executive and first-class.
SWOT Analysis of British Airways
SOWT analysis is the method of measuring the organization and its environment whether internal or external. It is used as the first stage of planning which helps marketers to focus on the key issues that an organization needs to face.
SWOT stands for Strengths, Weakness, Opportunity and threats. Strength and Weakness are the factors which basically represents the internal environment of the company while other two represents external environment with direct and indirect impact on the business.
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The Brand of the British airways is the main strength of the company which rated as the new speedy airline. They promise to their passenger to get comfortable travelling experience and their strategy towards making services more convenient to the customers makes them best of choice. They always show proper respect to the customers’ complaints and feedbacks. Therefore, the operations of the Airways make them professional over all other competitors and give them high class services to all their variety of customers.
Moreover, BA claims that they have best analytical skills based on the customers experience handled by members of the company which is their strength in the airlines industry.
Poor Marketing strategies of British Airways has always been criticised which becomes their worst weakness and have a huge bad impact on the customer satisfaction. Regardless of great infrastructure, BA still needs to carry out and incorporate the better marketing schemes in order to attract more customers. Thus, providing competitive package can makes the big difference to make the current service more attractive and reliable. Moreover, compromising in the skills of software simulation and its development also shows the weakness of British airways.
In this rapid changing technology, companies also need to keep evolving in their technology and innovation in the products and services which becomes hard for companies to do. However, it provides huge opportunity to the companies to get competitive advantage. British Airways appreciates these and taken as opportunity for their further advancement in the services. Trends in the technology also make the opportunity in terms of various business domains or can be considered as the threats and weaknesses.
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Threats can be seen as the internal or external. The management and bureaucratic system of the company can also make difference in increasing the threat for the business. Above all, poor decision making can be considered as the threat of the company when not properly handled and taken. The global problems greatly offer tremendous threats if and when companies will ignore such. Moreover, globalization can be an opportunity and strength but at the same time can also be considered as a threat if company does manage and develop according to it. Further, rapid changes on technology and customers’ behaviour can also be a threat if interpreted mistakenly.
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