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British Airways

Introduction
British Airways is the leading and popular airline, which has been working in air traveling since long.
This airline is owned by the British government and it operates huge number of flights on its domestic
and international destinations. It provides the reliability and comfort to its passengers and they trust
its airline on ground and in air services and the passengers give preference to this airline, while doing
travel to long distances. The people, concerning to corporate, middle and upper middle class are the
main target of this airline. If the passengers have to travel to long distance and they need some comfort
and convenience, then they should get registered their seat in the flight of this airline and enjoy the
luxurious journey with its traditional services to the passengers.
British airways has maintained its high standard in its services and the high security services ensure
its passengers that they are safe and they the airline can handle all situation in controlled manner. The
high quality of services can help the airline to define itself as Quality Flights for all people. This airline
has over two hundred and ninety five airplanes, which are providing first rate services to its
passengers.

British Airways SWOT Analysis


British Airways Strength
British Airways has strong identity and it has created its confidence among its passengers, who are
also loyal with this airline.
In the airline industry, British Airways enjoys good reputation and it is one of the great and leading
airlines of the world.
British Airways has strong and impressive brand image and it is present globally.
The airline has over 260 aircrafts and this fleet is engaged in operating flights domestically and
internationally.
There are about 150 international destinations, on which British airways operates its flights.
The passengers can enjoy with its excellent traveling environment.
The excellent services to the passengers at the ground and in the air, gets attention of all other
passengers.
British Airways Weaknesses
The airline opens its new terminal at Heathrow airport and there is difficulty in giving training to its
staff.
When the fuel prices are increased, the airline increased the prices of the tickets, which has bad
impact among its clients.
The US banking sector affected with bankruptcies and number of passengers in airline is
decreased.
British Airways is facing strong competitions with other rival airlines like Middle East airline, which
are stronger than this financially.
Due to intense competition in market, the airline has limited market shares.
British Airways Opportunities
There is great rush at the main terminal of Heathrow airport because it is main transporting hub
across the globe and it has to handle huge number of passengers.
British Airways should increase its number of flights on different international destinations.
In the emerging economies, there is great rush of passengers and British Airways needs to
increase its flights on these international routes.
British Airways improves the operations at terminal 5 at Heathrow airport to handle more and more
passengers there.
The airline needs to focus on various traveling facilities at low cost so that they can meet various
needs of the clients.
British Airways needs to induct new aircrafts in the airline and it can reduce damage to
environment.
British Airways Threats
When cost of fuels is increased, then rates of tickets are also increased.
The labor cost is also expensive.
The airline has to face great competition in European markets.
Global recession has bad impact on air transport.

Marketing Objectives
The airline is making plan to grow its operations and makes the corporate a prominent part of their
business. It is also investing huge amount to get more new aircrafts and also reducing the
manpower on its terminal to reduce the cost over the services of the airline. It is also introducing new
products like business class seats on international flights and it is also working on restyling of first
cabin. It is also delivering the first class or best customer services and focusing over mileage
business. It is focusing on getting third party engineering and e-ticketing is provided with co-operate
packages for its regular passengers.

Market Segmentation
Due to open sky policy, the airline has to compete with other airlines in terms of price and it has to
focus on short haul market and the long haul market. The airline operates its flights on the domestic
routes as well as on the international routes. It also operates the premium class travels with the
provision of excellent customer service and uses the marketing skills and technology. The airline has
the big market share to operate on the long distance flights and it will explore new destinations to get
more targets and more people across the globe.

Target Market
The airline is now looking for new destinations to operate its new flights and get more passengers
through its operations. It is also focusing on giving more facilities to its passengers, and tap in the
new markets. There are various countries, which are developing their economies and they invite
different companies to start work in their countries. With the increase in rush of people at such
places, the leading airlines of the world are introducing new flights on these routes.

Product Differentiation and Positioning


Most of the passengers look for facilities and services, when they operate their flights on different
destinations. British Airways introduces latest services and security to its passengers, which are
stronger and safer than other airlines across the globe. The airline is in position to help its
passengers in better way and they are also introducing different products to enhance their facilities
to their passengers and make them satisfied with quality of services.

Marketing Mix
Place
British Airways is operating its flights at the prominent destinations around the world. The airline has
huge number of flights as it has about three hundreds aircrafts, which are operating their flights on
the domestic and international destinations. On the busiest airports, the airline operates huge
number of flights with their state of the art facilities.
Price
British Airways provides good quality services to its passengers to make their journey safe and
sound. Despite of its classy services, it maintains most economical rates of the flights on different
destinations. The upper middle and middle class people can afford to buy the tickets of this airline
and they can enjoy their long distance journey with this most sophisticated airline.
Promotion
The airline is getting popular due to its various incentives and facilities, which they provide to the
passengers. It also adopts the most effective and impressive advertisement policy, which can help to
gain attention of its passengers and they prefer it to gain the facilities and services of this airline.

Marketing Strategy
The marketing strategy of the airline is based on its improvement in margin by focusing on costs,
ancillaries and yield of profit. It provides low cost to focus on core areas like number of flights on
particular destination and board food equipment along with tailored plan to its passengers. The
airline is also improving its infrastructure, provision of correct information to its travelers, and also
provides the important supports to its crew members through their efficiency programs, which is
implemented. It also increased their attention on the cost by engaging the regulators and
government.

Return of Investment
When the airline provides different facilities to its clients, they invest huge amount over their services
and security system for their passengers. The airline wants to get profit by making such investment.
When there is huge number of passengers on these airlines, then they get good profit over their
investment made on these flights.

Strategic Marketing Plan of British


Airways
Published: 23rd March, 2015 Last Edited: 23rd March, 2015

This essay has been submitted by a student. This is not an example of the work written by
our professional essay writers.

The main focus of your research is on the external and internal analysis by way of PESTEL
analysis and also through SWOT analysis, from this two analysis for both the companies we
have tried to review various factors such as technological, environmental and legal factors
which could effect the company's growth and through SWOT analysis we have focused on
the companies Strength and Weakness where the company lacks or had a strong hold in
the market. We also tried to focus on various other aspects like the corporate strategy which
company uses and have also tried to exploit the marketing mix which company uses to
promote its brand and also the target market which company focuses on or relies for its
business.

The whole purpose of this essay is to analysis the situation of entire airline industry as a
whole and also the key issues which companies face in operating their business, and lastly
we would provide your conclusion of the whole and recommendation to the whole research.

Introduction
British Airways is one of the most popular airlines in UK and one of the biggest airlines
which operate more than 550 destinations globally. British Airways was established on 25th
August 1919 and has completed 91yrs of operation in the industry. This largest scheduled
international airline of UK not just operates in international and domestic schedule but also,
provides the charter services for ancillary and freight (British airways 2010). It employees'
around more than 57000 employees' till date (Data monitor 2010). It carries more than
33million passengers, and earning billions in revenue. Located in the principal business
place of London, the company has significant presence at Heathrow, Gatwick and London
City. The company has a very strong customer base as, it operates across the globe. British
Airways is divided in to two groups one is British Airways Plc and other one as British
Airways holidays Limited. (http://www.britishairways.com/travel/aboutba/public/en_gb)

Easy Jet was founded Stelios Haji-Ioannou (Greek) the company in 1995 and has the head
office at Luton Airport, Bedfordsire London, It has created on the low-cost, no-frills model of
the US carrier Southwest. The concept of easy Jet is based on the belief that demands for
short-haul air transport is price elastic. That means, if prices for flights are being reduced,
more people will fly. Today, it offers 125 routes from 39 European Airports (see
www.easyjet.com), with Luton, Liverpool, Geneva, Amsterdam as base airports and is
operating 72 aircrafts It employees' more than 2870 people. It is one of the leading low-
budgeted airlines in UK & European Union. (Source: www.easyjet.com)

Situation Analysis of Airlines Industry:


Air travel remains a large and growing industry. It facilitates economic growth, world trade,
international investment and tourism and is therefore central to the globalization taking
place in many other industries.

In the past decade, air travel has grown by 7% per year. Travel for both business and
leisure purposes grew strongly worldwide. Scheduled airlines have carried 1.5 billion
passengers last year. Airlines' profitability is closely tied to economic growth and trade.
Despite this, the airline industry has gone along the path towards globalization and
consolidation, characteristics associated with the normal development of many other
industries. It has done this through the establishment of alliances and partnerships between
airlines, linking their networks to expand access to their customers.

External Analysis of British Airways and Easy


Jet:
For the success of the airline industry, it is very necessary of all the organization to look at
their external environment. This aims to look at aims and objective of the companies as well
as the company's position, the competitors and also reviewing at the capability of both the
companies to meet current and future challenges.

Pestle Analysis:
Political Factors: Johnson et al., (2005) a) Heavy regulation of government affects the whole
airline industry like increase the security of passengers due to terrorist threats, b) Also
sufficient security measures should be in place to ensure that passenger confidence and
competitive advantage is maintained at all the level, c) Another factor which affects the
British Airways as well as easy jet is the problem of trade unions which have affected the
most to the airline because of strike in the company and also the implications were saviour,
d) As the airline is deregulated for most of the companies like BA and Easy Jet there are
many other factors like pricing and government intervention to protect the employees' right
which always equal right for the employee e) the political instability of the government is
also a threat for the entire airline industry.

Economic factors: a) The global economic crisis throughout the world and the Eurozone
getting affected the most due to currency weakening against other currencies b) It is also
due to possible reduction in the business of travel and tourism and also company reducing
the cost, such as looking for alternative means of communication c). Also the volcanic ash
cloud which spread across the euro zone on 15th April 2010 which almost brought the
business of airline industry a halt due to disruption in the flights take off and which lasted for
more than a month d) also slowing down of economy across the world which led to lesser
passenger travel and also the price war across the industry which led to immense
competition, e) The fluctuations in the oil prices across the globe which affects the price
base of both the airlines and also the exchange rates.

Sociological factors: a) The aging population in UK which is a major concerned for the
country as the older people prefer to travel by other means of transport as their spending
power is less, b) The other factor is the growing unemployment in UK which reduces the
purchasing power of the people, c) Increased bargaining power of the employer for their
employee's due to the companies spending on their employee's for their leisure and
development, c) More spending by older generation as they have more leisure time to
spend.

Technological factor: a) Due to increase technology like online service by the airline the
major impact is the customer has more choice in comparing the price as well as increasing
customer awareness and bargaining power. b) The companies have to get updated with
advance technology, c) The Company has also to be isolated that the technology they use
is friendly and is more comfortable to elderly people, d) The company needs to get
upgraded on their systems and ensure they are properly used and maintained which is also
a huge cost for them.

Environment factor: a) The noise and energy control which has to be regulated due to
environmental issues, b) The limited lands available for the growing or expansion of the
airports due to losing green zone belt and government regulation on the environment, c)
Other factors are new legislation (eg.Climate control) or also enforcing of tighter
environmental regulations and also day to day increase of operational cost due to change in
environmental policies, c) Limited utilisation of resources and capacity.

Legal factors: a).The airlines mileage scheme is in the way of perks to the employee's in the
way of gifts like cars are taxed, b) Open skies agreement by the airlines with the
government which allows the companies to by any other companies. c) Currently there are
many legal restrictions by the government for buyout of any company and current holdings
of the European companies in any airlines. c) Opportunities for competitors to purchase the
aircrafts between EU and US, this are great threat for both the companies of immense
competition from other non-European airlines.

Swot -Analysis:
Internal Analysis: a) As part of EU easy jet has a great image as a low cost airline and is
different from other competitors as compared to price and as well as brand image which it
carries. The company is financial very strong and is successful in the industry. It has a very
strong e-business and is always been in innovative and very flexible organization in terms of
business.

For British Airways the greatest strength lies in its brand and its new fleet of aircrafts which
provides immense comfort to the travelling passenger. The greatest strength lies in its
operational staff and the ways which the airlines operates and also the strong customer
focus and developed expertise in the field of customer service, by providing the high end
service to its customer. The basic work of the airline is to keep upgrading its systems and
also innovating or exploring new ways of providing highest level of customer service.
Weakness:
The common problem with both the companies is they have no customer retention policy,
lack of flexibility and do not focus on business equally. As low cost airlines easy jet model of
working is unappealing for most of the business travellers. The model of low-cost airlines is
far most similar to some on the new or existing airlines and the price war is reaching a limit.
The other thing is the recruitment of new staff quickly and just giving them training so that
they can be competitive in market.

For British Airways it's very important to maintain their brand image in the market, the
relation with their employees are in a very bad shape due to continuous strike and also due
lack of reliability and trust of the employee's. As the airlines industry is shrinking there has
to be a new innovation and change in the way of operation if the company needs to survive
in the market it needs to focus on new ideas and new marketing tactics to retain its market
and stay ahead.

Opportunities in the market:

There is predication by many analyst that there is great potential in the market for growth
and sees a great opportunity ahead which lies in the industry.

The market scenario where there is credit crunch is very favourable as the companies are
more conscious on price and also on the people.

Also the other benefit is the reduction of the cost of the aircrafts, which has ultimately
reduced the operating cost of all the airlines.

There are also new markets which are untapped till now and which have a great potential
as business prospective.

Threats to the Company:


The first threat is the immense competition from other cheap airlines which are offering a
similar service and at cheaper rate.

Due to saturated market there is always shortage of new options as there are limited
resources.

Due to various security threats the companies have to cut down their business travel in
times of credit crunch and also its very time consuming process to get the additional
security arranged or for arrange for new flights.

Due to competition the company has to spend more on the marketing and branding, which
is too expensive and also which could affect the company's profitability in future.
Key Strategic Issues from Pestle Analysis:
The global economic issue in the period of credit crunch which the airlines face due to any
circumstances (like volcanic ash issue, union strike or could be employee retention).

The other possibility is the higher regulatory requirements from the government like legal
issues or the current laws of open sky policy.

The technology factors like increased used of internet by the customer (eg. Ticket booking
or for online check in etc.).

Changing customer demand or changing business environment for airline industry.

Companies Current Position in the Market:


British airway currently is in healthy position compared to its peer's competitors and is
position as, one of the premium service provider in market. It has already joined hands with
many leading airlines and has already segmented its market. It's UK biggest international
flight operators and is also one of the largest international and domestic freight, mail and
ancillary service provider. It has already established, as one of the greatest players in the
airline industry and has a great operational strength. It's a FTSE listed entity on the London
stock exchange.

As compared to British Airways, Easy Jet is UK most cheapest or low-cost airlines which
has a huge presence across Europe and in UK. It, has positioned itself in such a way that it
had provided immense flexibility to people in terms of price. It has increase its European
market share from mere 6% to 10% in 3-4 years and is commonly now as budgeted airlines.
Its one of the most affordable airlines, which has created a great impression in the minds of
people and could be positioned as one of the leading airlines in UK and Europe. It, is also
one of the value traded on the London Stock Exchange.

Corporate Strategy:
Vision of British Airways:
"The companies' vision is to become the world most responsible airline and to be the
world's leading global airlines". (Source www.britishairways.com/ba_reports)

Mission:
Mission is to provide good customer relations and service
Goals:
Send none of our UK waste to landfill by 2010.

Reduce our average noise per aircraft by 15% by 2015

Make it easier for customer to carbon offset their journeys

Support a whole range of community and conservation projects around the world.

(Source: www.britishairwaysplc.com)

Mission Statement of Easy Jet:


"To provide our customers with safe, good value, point-to-point air services. To effect and to
offer a consistent and reliable product and fares appealing to leisure and business markets
on a range of European routes. To achieve this will develop our people and establish lasting
relationship". (Source: www.easyjet.com)

Goals:
"The goal of easy jet is to become one of the biggest players across the industry as
budgeted airlines and provide the best service to customer. It also plans to be a leading
environmentally efficient and responsible airline, striving to be efficient I the air, efficient on
the ground and to lead the way in shaping a greener future for aviation". (Source:
corporate.easyjet.com/en/archieve)

Company Strategy towards their Goals:


British Airways:

The first thing that British airways planned is by growing their operations and making
corporate responsibility a prominent part of their business.

By investing in efficient and flexible new aircraft even in economic downturn time.

By reducing the manpower on the entire terminal will help the company to reduce the cost.

By introducing new product such as new business class seat on long-haul flights and
restyled first cabin.

Delivering first class or one of the best customer services at every touch point.
It also focuses to on mileage business and boosts its profit by doing third party engineering,
I flight sales and also new online business through e-ticketing and also providing great co-
operate packages for regular travellers.

It also plans to have the most presence in key global cities and also build the strongest
position in market of UK and across the globe.

Corporate Strategy of Easy Jet to achieve its


Goals:
Easy Jet as one of the leaders in low cost airline its strategy is to improving its margin by
three ways focus on yield, ancillaries and costs.

Its main aim is to provide low cost t its customer by controlling its cost and focusing on the
core areas like flight frequency, on board food equipment, offering tailored plans to the
customer.

The other thing that company is focusing to achieve its goal is improving the infrastructure,
providing accurate information to its customer's and also providing key supports to its crew
members by giving them crew efficiency programme which has been implemented.

Increased focus on the cost by constructively engaging the governments and regulators that
set them.

Segmentation of market for British Airways


and East Jet:
Market segmentation of British Airways:
Due to increased competition to BA in terms of price and it also varies from route by route
due to open sky policy. It focuses on two main aspect of current market 1). The short haul
market and 2) long-haul market.

Short haul Market: In this kind f short haul market the company focuses on the people who
prefer to take a shorter routes within the nation called as domestic flights, which many of the
UK companies are operating. It has already operating in to premium class travels, where its
already grown and is providing and excellent customer service with the help of their
marketing skills and technology. Its also looking beyond, its segmentation and also trying to
focus not only on long-haul flights but also on shorter distance lights due to immense
competition from some larger players who operate on the similar routes.
Long-haul Market: As, we now that the BA is one of the most reputed and well known name
in airline industry and has a very big market share in operating in long distance flight, its
prime focus of business segmentation is exploring new destination and new routes so that it
can target more and more people across the globe and position itself in such a way that it
can sustain in market in any condition and be at the top. It, has also new plans to enter in to
low cost air ticketing by entering into a price war with its competitors on a regular basis to
grab the market share and retain its customers

Market Segment of Easy Jet:


The vast business of Easy Jet is in t and from the UK and it targets at the business and
leisure consumers. The target people are those ones which are keen on saving time and
money. It also provides various other packages like hotel accommodation, ca parking,
choice of aircraft for frequent travellers and its tries to target more customer base by
offering additional services. Easy Jet is focusing or targeting corporate business travellers
and also targeting consumers through websites and also offering them last minutes deals. It
is also trying to target the smaller income groups and also the places which have a small
demographic location and which could help the company to garner more customers.

Marketing Mix for British Airways and Easy


Jet:
Marketing Mix are the related to four elements of marketing such as Product, Price, place
,Promotion, it is based on four assumptions of marketing for any organisation, in this essay
we would be discussing about the four models which are used by two companies in different
way like for BA and Easy Jet.

(Source:http://www.startuphustle.com/2008/10/21/push-vs-pull-marketing-and-your-
marketing-mix/)

Product: Product is the biggest thing for a company, as every company is fully dependence
on the product; BA showcases its product by taking a customer feed back on their products
offered and also innovating new product across the airports. They have a large variety of
products t be offered to the customer.

Easy Jet has the different way on putting its brand; it develops the products according to
customer needs and has different way of presenting its brand image.

Price: Price is the most important factor in the airline industry as every company is heavily
dependence on the price as the key drivers of the company is price. The company uses this
pricing strategy to get more and more market share and to garner more customers across
the globe. BA provides various deals which, are based on its pricing which is a tool which
can be used to generate new revenues for the company.

The whole concept of Easy Jet is to provide low budgeted airlines and to provide its
customers with the cheap travel and convenience. As, a low budgeted airlines the whole
business of Easy Jet or its strategy is developed on pricing factor and also the marketing
mix is also the depended on the marketing department.

Promotion: Marketing and advertising go hand to hand as every company needs to promote
its brand to enter the market. Due, to immense competition the companies develop different
marketing strategies like spending on the advertising, through internet and other ways of
communication. BA uses its promotional strategies like introducing of text and mobile
services for the business customers. Modernise the aircraft fleet and offer new services.

Easy Jet also uses the same strategies to promote its brand like advertising and also using
technology to promote its brand.

Place: Place is the one of the number one priory for the airlines as no airline can operate
without a proper location. For BA as it's operates from UK and has the operational base in
UK for carrying out day to day activities. As the companies operate through various airports
for carrying out the business activity like the warehouses for carrier purpose and also using
the space for the aircraft servicing. They need to develop the infrastructure around the place
which they occupy and need to get updated regarding the place.

Conclusion:
As a result of the external and internal analysis number of strategic option were proposed,
we conclude that the combined strategy to improve the quality service was deemed most
suits. Due to current scenario of the airline industry we have chosen to consolidate the
current position of both air lines as both of them have their own marketing and strategic
expertise in their various segments. Due to scope and scale of operation and focus on
passenger tariff we would recommend further strategic analysis to implement level strategy.

Due to lack of primary research and restricted excess to company's information there may
be limitations in finding and recommending strategy.

Recommendation:
Both the companies need to work on their different strategies to maintain its lead in the
market and also we also suggest if the strategic intents are followed would lead to the
success of both the companies.
The Current Marketing Strategies Of
British Airways
Published: 23rd March, 2015 Last Edited: 3rd May, 2017

This essay has been submitted by a student. This is not an example of the work written by
our professional essay writers.

From the period 1990 to the current age, the aviation industry has been one of the most
booming sectors. Worldwide increase in GDP created a wave in the economy. The demand
to travel resulted in the growth of the airline industry. During the year 2000 the airline
industry suffered one of its most tragic phases regarding to the growth of the industry. This
happen mainly due to the problems faced by the world, for instance the terrorist attacks on
the world trade centre and the deadly virus named 'SARS' which claimed a lot of lives in
south east Asia. Many travelers reduced their travel and preferred avoiding few critical
places of the world. Due to this there was a major impact which led to the downfall of the
airline industry. The crisis initially stared a slowdown in the demand for airlines and as the
crisis evolved the demand started to decrease in a rapid manner.

British airways completed 90 years of service on 25th August 2009. The origin of British
airways could be traced back from the 19th century. Its first ever flight took off on 25th
august 1919. Since then British Airways has seen a lot of changes and developments. The
first flight operated from London to Paris and it carried only a single passenger and the
cargo included newspapers, Devonshire cream and grouse. During the year 1924 many
airlines emerged. Out of these four airlines joint hands and formed Imperial Airways limited.
They basically provided services to Paris, Brussels, Basle, Cologne and Zurich. In the year
1930 handful of UK air transport companies joint hands to form British Airways Limited
which emerged to become the biggest competitor for Imperial Airways. Due to
nationalization by the UK government British Airways and Imperial Airways formed British
Overseas Airways Corporation (BOAC) in the year 1939.

Domestic and Continental flights were operated by another airline, British European
Airways. In the year 1972 British airways Board which was established in the year 1960
merged BOAC and BEA which led to the formation of British Airways in the year 1974.

Marketing Strategies of British Airways:


Marketing is nothing but a mix of Place, Product, Price and promotion. British Airways have
based their marketing strategies based on the marketing mix. They have a product strategy,
pricing strategy, Promotion strategy.

Product Strategy of British Airways:

Introduction to product strategy:

Product is the main and the key feature of any sector or a company. Place, price, promotion
comes along with product. Without a product the other three marketing mixes, place, price,
promotion cannot be considered.

The main product of British Airways is providing air carriers (flights) to the customers who
wish to travel. It provides various services which are intangible. These services become a
part of the product which is sold by British Airways. British airways have different types of
classes for travelling which are executive class, business class, club class and economy
class. The product sold by British Airways has been divided into different product levels.

The first being the core product what a customer is purchasing. In the case of British
Airways it's the flight tickets which are been purchased by a customer. He buys them
basically to satisfy his need to travel from one place to the other.

The second is the basic product. In the case of British Airways it is the flight. The customers
here book the flights to their destinations on the basis of the schedule provided by British
Airways. British airways has a very big network and it connects UK to all parts of the
world.The British airways flies to 95 different cities in Europe and 60 other destinations
throughout the world. It is rated as one of the busiest airline in the world.

The third is the expected product by the customer. In the case of British Airways it would be
the various products such as complimentary meals, drinks, allocated seats and onboard
entertainment and other services.

British Airways also provides extra services such as various executive classes. British
airways provide gold class, silver class and the blue class. They have different kinds of
services to fulfill different kinds of needs of their customers.

Pricing strategy of British Airways:

Pricing is nothing but a method by which the price or the value of the product is been
calculated. It's the amount paid by a customer in order to enjoy the product or service.
While setting the price the company needs to keep to basic things in mind. They are quality
and the price. If the price is higher than the quality, the company would run under losses.
And if the price and quality are balanced then the company would reach its profits soon.

British Airways has three different strategies. They are;


Premium price strategy:

In this kind of strategy the people of higher class in the society are targeted as they can
afford such kind of cost. The main customers for this strategy are executive and business
class users. They have been given high quality services as they pay a high price.

Medium price strategy:

In this kind of pricing strategy the medium class of the society is been targeted. Here the
quality of services provided is lower than the premium price .in every kind of strategy the
quality keeps deteriorating but at a minimum level. This strategy is basically used in order to
give competition to various other airlines which provide the same services.

Low price strategy:

This strategy is basically used to compete with low cost carriers like Raynair. British airways
provide low cost fares along with added quality services and its name. People would
obviously prefer British airways than the other low coast carriers as they are getting British
airways at the same cost along with their name.

Considering other competitors British airways revised its pricing policy. The factors
determining them are;

-Determining the pricing objectives

-Acting according to the demand

-Cost estimation

-comparing competitors prices and costs

-selection of a pricing method

PROMOTION STRATEGY:

British airways have provided various offers during festivals like Christmas. This ticket is
generally known as British airways escape ticket. Rates have been slashed to a large extent
and also people who travel in silver and gold class have been given free upgrades but only
one way of the journey. Domestic flying rates have also been slashed.

PROBLEMS FACED BY BRITISH AIRWAYS:

-TERRORISM:

The attacks on the World Trade Centre in the year 2001 created fear among the travelers
and since then the airline industry at a whole faced a huge downfall. Despite all security
measures taken in recent time's people travelers are not able to regain their confidence.
Due to this there is a slight decrease in travel. But in recent years terrorism has been
controlled due to which airline industry has picked up in a rapid manner

-Oil prices:

Increase of crude oil prices created an economic downfall due to which the airline industry
was badly hit. British airways being a part of it faced the problems dude to which they had to
increase their fares. The increase in fares led to people choosing low cost carriers and thus
British Airways lost a lot of business.

Volcanic ash:

The volcano which erupted in Iceland created lot of disruption in the airspace of UK due to
which 4000 flights were cancelled on 15th April 2010. Thos went on for nearly 3 weeks due
to which many airlines faced huge losses. British airways were one of them.

Strikes:

The crew of British airways seems to go on strikes for everything possible. In recent years
crew members have resorted to strikes based on salaries and staffing issues. Die to this
many flights were cancelled. Low cost carriers took advantage of this and British airways
started losing its business and the respect of its brand. People started to prefer other
airlines due to the strikes. British airways is losing business due to this. The issue is still not
been resolved.

Competitors:

The different types of marketing strategies used by rival airlines are much more effective
due to which British airways is losing its valuable customers. Various competitors like
emirates, Virgin Atlantic, Lufthansa are providing travelers with better services than British
airways.

These problems are general in-flight problems faced by the passengers who are travelling
on British airways. These problems are based on the feedback and reviews of the
customers

-Passengers travelling have complained about the food which is been served to them during
the journey

-Passengers are complaining about the entertainment provided on the flight

-passengers also have complained about the staff and they say that they don't seem to be
caring and are only professional.

SWOT analysis:
Strengths: British airways have purchased a new fleet of aircrafts which are highly equipped
with the latest technologies available. Its competitors are still on the way to get changing
their inventory. British airways have its main strength in its name. The very name of it marks
its respect.

Weakness: The marketing strategies of BA aren't as good as its competitors. The reason
behind this is that BA is using simple and outdated strategies. Whereas its competitors are
using intense marketing strategies which are developed by highly skilled market analysts.
British airways suffer losses due to number of strikes every year.

Opportunities: As British airways provide various services, it has got the potential to score
customers in the global market. If they do so then globalization can be their strength instead
of their weakness.

Threats: the threats of British airways are internal as their decision making is poor. Due to
this there is loss in business. British airways have its prime focus on local issues and
national issues due to which it fails to see global. Thus globalization is been ignored.

British Airways is a premium segment airline and accordingly British Airways


business strategy can be specified as service differentiation. The airline aims to
generate a return on capital of a minimum 15 per cent with an operating profit
margin of 12 15 per cent.[1] British Airways business strategy focused on service
differentiation is planned to be continued in the following directions[2]:

Replacement or refurbishment of 99 per cent of wide-body aircraft by 2020


Improvement of in-flight entertainment in-seat power and the rollout of on-board WIFI
Further investments in digital technologies to provide personalised, seamless service

British Airways business strategy also relies in international market expansion


strategy in an aggressive manner. In 2016 alone the airline company is expected to
fly to more than a dozen new routes, including Biarritz in France, Mahon in
Menorca and Palermo in Sicily. The airline also announced additional services
from Heathrow and Gatwick to Krakow in Poland, Stockholm in Sweden, Split in
Croatia, Berlin in Germany, Olbia in Sardinia and Gibraltar.

British Airways competitive advantage is based on the following points:


1. The highest standards of service with a focus on service personalization.

2. The variety of choice is another important aspect of British Airways competitive


advantage. For example, in the World Traveller cabin, customers can choose from a wide
range of Taste of the Far East, Gourmet Dining, Taste of Britain, Great British
Breakfast, Healthy Choice and Vegetarian Kitchen.[3]

3. Focus on digitalization and increasing integration of information technology into


various aspects of service provision and business processes.

British Airways Report contains more detailed discussion of British Airways


business strategy. The report also illustrates the application of the major
analytical strategic frameworks in business studies such as SWOT, PESTEL,
Porters Five Forces, Value Chain analysis andMcKinsey 7S Model on British
Airways. Moreover, the report contains analyses of British Airways leadership
and organizational structure and marketing strategy and discusses the issues of
corporate social responsibility.
Home Marketing mix articles Marketing mix of British Airways

Marketing mix of British Airways


By Hitesh Bhasin December 1, 2016
British Airways is the largest airways in the United Kingdom in terms of its fleet size and
international destination flights. If it is about carrying passengers, it comes at number second. The
airway has its headquarters near the Heathrow Airport in London.

In order to maintain its position as one of the leading Airways it has set and maintained its high
standards in terms of services. The company provides twenty-four hour security services to its
customers and handles all the situations in a calm and controlled manner. The quality of services
rendered has helped British Airways to define themselves as one who provides Quality flights for
all people.

Product in the Marketing mix of British Airways

The products offered by British Airways are excellent in terms of satisfying the needs and wants
of the buyers. It has a fleet size of more than two hundred and ninety five that provide first-rate
services to all its patrons. The British Airways tries to satisfy all the requirements of its customers.

Firstly, it provides the flight tickets at a reasonable price to satisfy their want of flying from one
destination to another. Secondly, the Airway is connected to some of the busiest airports of the
world and it provides excellent scheduled flights to all its destinations. Thirdly, the Airways tends
to provide all its customers the best possible in-flight services in terms of comfortable seats that
have previously been allocated to them, hot and fresh meals, drinks and even entertainment on
board.

The customers can go through the magazines provided by the staff or can choose other form of
entertainment like the movie collection, radio channels and even television programs. The British
Airways has gone out of its way to deliver some superb support facilities. In order to cater to the
needs of different sections of customers it has divided its services in three diverse executive
classes. The customers belonging to the gold executive class and the silver class can avail
themselves to the executive lounges that are found in almost all the important airports of the world.
Here they can spend some quality time relaxing and even eat, shower and visit the airport gym.

Place in the Marketing mix of British airways

Place plays a very important and distinctive role in any marketing strategy. The British Airways
recognizes this truth and has always been dedicated towards mergers and liaisons with most of the
important destinations of the world. As the base of the company is United Kingdom, it carries on
most of the day-to-day activities in and around its operational base.

The company has successfully developed and upgraded infrastructure to conduct safe and proper
activities. The British Airways has joined hands with various other airport authorities for carrying
out their business activities successfully. They have their own warehouses and sometimes
warehouses in coalition with other companies for carrier purposes and for servicing their aircrafts.
Their main channel of distribution of the products is through the call centres, the online websites
and the travel agents. The Airways also emphasizes on easy accessibility of all their locations for
smooth and fast transactions. British Airways is one of the most popular airlines to fly through six
continents of the globe serving nearly one hundred and sixty destinations. This also comprises the
six domestic destinations.

Price in the Marketing mix of British Airways

The British Airways has shrewdly kept its pricing policy such that every class of people can avail
themselves of its services. They have tried to maintain a policy of pricing that equals to the value
provided by the company. The strategy of the company is such that the customers are the decision
makers and it is they who decide about the total amount to be spent. A customer can buy a ticket
at its base price without any extra value added benefits or can even choose the different services
that he requires.

The Economy pricing strategy is for people who want low priced tickets. The medium-value
pricingstrategy is for people who require some of the fringe benefits and the Premium pricing
strategy is for people who like to travel with all the high-class benefits provided by the airlines.
This method of splitting their pricing policies has helped the British Airways in maintaining their
high standards and creating profits at such competitive times. The Airways keeps on revising its
pricing policies against all its competitors so that they can maintain their loyal customers. Their
method of pricing the tickets at the perceived value has proved to be a success story.

Promotions in the Marketing mix of British airways

Considerable innovation has been put towards creating and maintaining promotional strategies. In
order to keep the communicative lines open with all its customers, different strategies have been
formed. A mobile application is created for the special airline customers allowing them to make
reservations easily and to get fringe benefits. In order to promote the services of the airlines, the
help of the internet has been taken as the techno-savvy customers can save their time while booking
tickets through net.

As a part of their promotional strategy, British Airways has been providing special flight tickets at
reasonable prices for special occasions. Tickets by the name of Christmas gift vouchers are one
such scheme where the customers can travel to certain places at very reasonable and discounted
prices.

In order to cash the off-season market the company tends to offer discounted prices to its
customers. For the promotion of the company and its products and various services, British
Airways has taken the help of electronic and print media. Television channels, internet, magazines,
billboards are different promotional routes of the company where active and catchy advertisements
have helped in maintain as well as creating a customer base.
Sponsoring events has also been a part of their promotional strategy as a healthy awareness about
the company and its services can be generated here. Some of the celebrities like Aditya Zutshi and
golferJustin Rose have been part of the company as their brand ambassadors. British Airways has
become a synonym for luxurious and reliable airlines that is dedicated to provide safe and prompt
travels

Corporate Responsibility

At British Airways our promise of To Fly. To Serve embodies who we are and what we do. We want
to ensure our promise extends beyond our everyday operation and that our commitment is one that
lasts. To do that we have one overarching goal: Responsible Flying.
What is Responsible Flying?

We want to use the power of flight to spread social and economic benefits to people. We want flying
to be both an inclusive and responsible practice that is actively involved in caring for our people and
our planet.

British Airways has led the way on sustainability for 25 years since we established our Environment
function in 1989. In 1992 we became the first airline to produce an environmental report and in 2002
we were the first airline to take part in carbon trading. We actively strive to help set the standards for
safe and responsible aviation in the future.

Our corporate responsibility programme is set up to address both our impact on the planet and the
people with whom we interact. It incorporates five pillars or commitments:
1. To create sustainable and responsible communities
2. To promote wellbeing and inclusion
3. To conduct business responsibly
4. To reduce British Airways environmental impact
5. To reduce waste and improve recycling.

Show all|Hide all


hideTo create sustainable and responsible communities

Flying Start

Flying Start is the global charity partnership between British Airways and Comic Relief UK. It is
committed to helping children who live challenging lives in the UK and around the world.
Through generous donations from customers and fundraising endeavours of colleagues, Flying
Start raises money for childrens projects in the cities we fly to.
For more information on the partnership please visit Flying Start

Work experience at British Airways

Our Work experience programmes offer a unique insight into the world of aviation. Our recently
accredited Gold Standard Programme provides five-day placements covering a variety of areas
across the airline including Head Office, Engineering and Operations. We make it a priority to
invest in developing students employability skills, with dedicated mentors throughout the
business. Work experience is an ideal way for students to gain real insight into the schemes that
British Airways offers young people, including apprenticeships as well as entry level careers.
For more information on work experience in British Airways, please visit our careers website.
hideTo promote wellbeing and inclusion

Customer wellbeing

Our aim is to ensure that all customers journeys are as comfortable as possible. Prior to travel,
customers have access to travel health advice on ba.com. Further information is also provided in
the Highlife magazine and we offer a range of audio visual wellbeing content on our in-flight
entertainment systems.

Colleague health

BA takes the health of colleagues as seriously as its customers

An extensive health surveillance programme which helps to monitor colleagues whose health may be
adversely affected by hazards at work.
An Early Active Rehabilitation (EAR) programme scheme, which assists colleagues who are unable to
access timely medical treatment from other resources.
Access to an Employee Assistance Programme (EAP), available 365 days a year, 24 hours a day, providing
free counselling, information, and support.

We assist colleagues in taking a holistic approach to building their physical, mental and social
health. We do this through our wellbeing programme underpinned by the BA wellbeing portal,
which provides information and tools aligned with the factors of wellbeing including fitness,
nutrition & lifestyle.
Building an Inclusive culture

Ensuring our colleagues feel valued for who they are is a passion that drives all our work. We
have employee networks in the areas of ethnicity, LGBT, gender, working carers and faiths.
British Airways recognises the value these groups have in guiding our business and also ensures
through training and development that all our colleagues are continuing to build a diverse and
inclusive culture. We are also committed to increasing the diversity of our engineering and pilot
communities and in particular the number of women entering and succeeding in STEM careers.
In 2016 British Airways came sixth in the Inclusive Top 50 UK Employers list.
hideTo conduct business responsibly

At British Airways we are committed to operating our business in a responsible manner by


creating a respectful environment for customers and colleagues. We recognise the cultural
diversity of our customers and aim to provide a thoughtful and responsive service, taking time to
listen and understand what matters most and developing products and services to meet different
needs.
All our colleagues receive training on diversity and inclusion to equip them with the knowledge
and skills to provide a uniquely personal service to our customers.
We are committed to upholding local and international laws on anti-discrimination and expect
both colleagues and customers to behave in accordance with these requirements.
Additionally we expect our partners to uphold our high standards and values.
British Airways always seeks to build relationships with suppliers who share our values:

Treat their employees with dignity and respect.


Never use or endorse use of child, bonded, prison labour etc.
Provide a safe and healthy working environment.
Take active steps to minimise their impact on the environment.
Behave in an ethical way and work against corruption.

British Airways are proud to be members of Sedex (Supplier Ethical Data Exchange), a not for
profit membership organisation that strives to improve supply chain standards.
We always aim to treat our suppliers fairly by undertaking a fair and transparent tender process
and paying our suppliers on time and not extending payment terms.
Throughout our operation, across our people, customers and suppliers, we strive to uphold our
responsible flying ethos.
hideTo reduce British Airways environmental impact

Climate change
We are committed to ensuring that aviation reduces its impact on climate change and are
determined to do everything we can to achieve the global goal of keeping temperature rises well
below 2C and pursuing efforts to limit the increase to 1.5C.
Our climate action plan includes:

the development of new low-carbon fuels


emission-saving initiatives
environmental projects supported by customer donations
proactive support for appropriate government regulation

We support a cap on emissions from 2020, with the aim of reducing net carbon dioxide
emissions by 50% in 2050.

Fuel innovation
We believe sustainable low-carbon fuels have great potential to reduce our carbon footprint and
we aim to accelerate their use in aviation. We are working on a number of projects that can
harness new ways to convert carbon from waste and create clean burning fuels for our aircraft
and our ground fleet.

New aircraft impact


Our latest Airbus A380 and Boeing 787 Dreamliner are designed to significantly reduce carbon
emissions per person. The A380 is the worlds largest passenger aircraft, with 16% less
emissions per seat than the Boeing 747-400 it replaces, with the Boeing 787 20% more fuel-
efficient than the Boeing 767 it replaces.

Responsible regulation (2020 Global Deal)


We were the first airline to participate in carbon trading in 2002 and have consistently
campaigned for this policy across the globe. By working with our industry associations, we have
proactively developed solutions to help governments prepare for aviation emissions caps from
2020.

Customer Carbon Fund


Customers can help us reduce the impact on climate change by donating to our community
renewable energy projects in the UK and overseas. British Airways customers have supported
more than 18 projects so far, impacting the lives of 180,000 people and resulting in energy
savings of over 1 million. From schools in the UK to sustainable agriculture projects in Kenya,
all of the projects provide vital support to local communities and help reduce carbon emissions.
The funds are managed by PURE, a not-for-profit charity working with communities in the UK
and internationally to provide opportunities to own, generate and benefit from clean, green
power. Examples include promoting the use of solar-powered heating and lighting, installing
small scale wind turbines for schools and promoting energy efficient measures such as LED
lighting.

Noise
For people who live close to airports, noise is often the most significant environmental impact.
We have achieved our goal of reducing average noise per flight by 15% and have now set a new
goal of a further 10% reduction (versus our 2014 performance) by 2020. We are delighted that
our focus on improving noise performance has been recognised in the Heathrow Airport Fly
Quiet League, where our short haul fleet has consistently ranked highly.
In line with the International Civil Aviation Organisations (ICAO) Balanced Approach to
Aircraft Noise Management we are improving operational procedures to reduce noise and
introducing modern, cleaner and quieter aircraft. From 2013 we started replacing our older
aircraft with a newer fleet e.g. the Airbus A380 produces a quarter of the noise of the Boeing
747-400 it replaces.

Improving air quality


Improving local air quality is a significant issue for people living in urban areas. Air quality is
affected by a number of source emissions, but the main issues are oxides of nitrogen (NOx) and
small particles in the air called Particulate Matter (PM).
We focus our efforts to improve the local air quality around the following areas:

Take-off and landing procedures: We aim to minimise thrust, allowing us to limit NOx emissions from
our aircraft
Ground Power: - Our home at Heathrow Terminal 5 is able to supply both electrical power and
conditioned air, enabling us to reduce the use of auxiliary power units.
Investing in cleaner ground vehicles: As part of our move to Heathrow Terminal 5 we have invested
25m in more than 550 modern, more efficient airport vehicles for ground staff and operations.

hideTo reduce waste and improve recycling

Waste management
At British Airways we have to deal with waste from a number of different areas, including
Hazardous and Clinical waste. We aim to reduce the amount of waste that has to go to landfill by
recycling as much as we possibly can and processing non-recyclable waste by other preferential
methods. BA staff have worked hard to reduce the total amount of waste generated from our
operations from a high in 2006 of 4500 Tonnes to 1500 Tonnes in 2015.
Recycling
At our main bases of Heathrow and Gatwick, we have targets in place to increase our recycling
to 50% total waste by the end of 2016. Non-recyclable waste from Heathrow and Gatwick is
processed through a waste-to-energy plant. The amount of waste we send to landfill has reduced
from a high in 2006 when 68% of BA waste was going to landfill, down to 0.55% in 2015. We
also reuse as many materials as we possibly can including office furniture, computer and
communications equipment.
Our engineering department has an impressive 85% recycling rate. This is achieved primarily
through the refurbishment of parts from aircraft and the recycling of materials.

On board recycling
We recycle as much on board waste as is allowed within the constraints of environmental and
legislative rules. Working with our catering partners we are constantly attempting to reduce the
amount of catering waste produced from flights as well as looking to select ingredients from
sustainable sources.
February 06, 2017 by Danny Rogers and Sam Burne James , Be the first to comment
British Airways is in the process of merging its UK and international PR teams, with redundancies likely to be
made, PRWeek has learned.

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image: http://cached.imagescaler.hbpl.co.uk/resize/scaleWidth/614/offlinehbpl.hbpl.co.uk/news/ORP/bacabin-
20170206095706426.jpg
The move would create a single, global PR structure within the London-based airline.

Kathryn Williamson, BA's head of consumer PR, confirmed that as part of a review of all head office functions
at British Airways, international PR had moved reporting lines from commercial to sit under Paul Marston,
BA's director of communications.

Asked whether there would be any redundancies as a result of the move, she said it would be inappropriate to
comment as the process was not complete.

BA's PR staff include head of brand PR Amanda Allan, consumer PR manager Michael Johnson, and head of
PR for Europe, Asia Pacific, Middle East & Africa Helena Flynn.

It is not known whether these roles are affected by the restructure.

Williamson also declined to comment on whether the move might have any impact on the agency roster - last
summer British Airways reappointed Grayling as its PR agency for Europe and Asia-Pacific, Meropa for
Africa and Action PR Group for the Middle East.
BA is owned by International Airlines Group, which also owns Aer Lingus, Iberia and Vueling, and was
formed in 2011.

Read more at http://www.prweek.com/article/1423338/british-airways-merge-uk-international-pr-


teams-job-cuts#kaOe4l2RfawYhLmP.99

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